The Roosevelt, a downtown Davenport residence complex, formerly granted to Andrew Wold, has had its nearly million-dollar historical tax credit revoked by the state.
The Economic Development Authority of Iowa has stated that the ability and finances of Wold’s, the owner of the site at Main St. 324, where a six-story building partially collapsed on May 28, resulting in the death of three individuals and the displacement of several others, are likely to be impacted. They have also mentioned that there is pending legal action related to the project.
The city of Davenport intends to seek reimbursement for the cost of tearing down the remnants of the Davenport apartment building. The staff of the city said that they have taken actions against him in court. Wold, a masonry company, is claiming that the collapse is related to work done for them, and is owed $100,000. Many plaintiffs, including Wold, are seeking money from the lawsuits related to the collapse.
The Iowa Economic Development Authority issued a default notice against Wold, citing unresolved legal actions and stating that the rehabilitation of an apartment building at 301 St. Sixth W. In Davenport, with nearly $900,000 in pledged historic tax credits, would be put on hold until the litigation is resolved.
The IEDA has determined that you are unable to make the necessary representations to receive a tax credit certificate due to the potential adverse effects on your business operations, properties, and financial condition, as well as the pending legal actions.
Wold did not reply to a journalist’s inquiries for a statement.
The state agency awards tax credits to developers who rehabilitate historic buildings sensitively, offering them a new lease on life through the Program for Historic Tax Credit Preservation.
Projects and buildings must meet certain criteria in order to qualify, and developers must apply. Buildings must be deemed historically significant, such as being listed on the National Register of Historic Places. Renovations must be substantial.
As per a representative from the authority, the highest tax credit available for the Roosevelt was $891,506 under the program. The income tax credit from the state can reach up to 25% of eligible expenses for rehabilitation.
The Roosevelt is a four-story building that was built in 1907 and was sold to the nonprofit Foundry Apartments LLC in 2018. The Salvation Army held the building until it was bought for $1.16 million, and it now serves as a 32-unit apartment building.
In an electronic mail, representative of the authority Kanan Kappelman stated that Wold received a total of $513,200 in tax incentives through a distinct state housing initiative for the Roosevelt structure. The initiative, which is a component of a state workforce housing tax credit program, concluded in August 2022.
The governing body refused to bestow the accolade, yet Wold also submitted an application in 2022 for a tax credit intended for workforce housing for 324 Main St., The structure that crumbled.