Housing efforts get a boost in Fort Dodge
Tax credits award for downtown, District 29 projects
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Two major Fort Dodge housing initiatives, including one that would replace a vacant downtown building, got a boost from the state Tuesday.
The Iowa Economic Development Authority awarded $1 million worth of workforce housing tax credits to the downtown project and another $1 million to a growing apartment and townhome complex on the city's east side.
The downtown project was proposed by Trolley Block LLC. Its plan calls for tearing down the vacant Trolley Center at Central Avenue and Ninth Street and replacing it with a four-story building. That building would have three commercial spaces on the first floor and 36 apartments on the three upper floors.
The other award of tax credits is for the District 29 development at 29th Street and Dodger Drive. A total of 50 additional units are planned there.
"This speaks well for the community," Mayor Dave Flattery said Tuesday evening. "It's real positive."
He said the tax credits will reduce the amount of money the developers will have to borrow, which in turn lowers their cost to build.
"This helps bridge that financial gap," he added.
Flattery acknowledged that Fort Dodge is "kind of on a roll here" when it comes to getting state support for projects. Already this year, the city was granted an expanded investment district which will enable it to keep $3.5 million in sales tax money that would have gone to the state and will now be invested in downtown projects.
"I just think it speaks well to the leadership we have in city hall which starts with David Fierke," Flattery said, referring to the city manager.
He said the city will be assisting both projects by providing tax increment financing money to help pay for demolition and infrastructure costs. Tax increment financing occurs when increased property tax revenue from a designated area is set aside to be reinvested in that area.
Trolley Block LLC is part of the company that developed the Second Avenue Rowhomes on Second Avenue South between Ninth and 10th streets.
The Trolley Center has been vacant for several years. It had a series of Florida based owners before the city government went to court and took ownership of it via the state's abandoned buildings law.
On June 8, the City Council endorsed the Trolley Block application for the tax credits. It also approved an agreement to work with the developer.
Construction of the first phase of District29 began in 2020 and was completed in 2021. Subsequent additions to the complex were announced in 2022 and the spring of 2025.