The Iowa Reinvestment District Program was designed to assist communities in developing transformative projects that will improve the quality of life, create and enhance unique opportunities and substantially benefit the community, region and state. The program provides for up to $100 million in new state hotel/motel and sales tax revenues to be “reinvested” within approved districts. Districts cannot exceed 25 acres in size, and must be in an Enterprise Zone or Urban Renewal Area. Iowa Reinvestment District plans must include tax revenues generated by “new retail establishments” and “new lessors”. New retail establishments cannot exceed 50 percent of the total proposed capital investment. At least one of the new proposed projects within the district must reach a total capital investment of $10 million. And, the total amount of new tax revenues to be remitted to the municipality cannot exceed 35 percent of the total cost of all proposed projects in the district plan.
Pre-applications were accepted during the annual filing window of March 1-15. Ten municipalities applied for more than $133 million. The pre-application process is designed to allow applicants to make reasonable changes to the proposed district plan before the final application is considered. The provisional funding decision is designed to provide practical feedback for municipalities interested in creating a reinvestment district, but is not final or binding. A scoring committee appointed by Director Durham has completed scoring of the 10 applications on criteria including uniqueness, economic impact, feasibility, non-retail focus, capital investment, leverage, readiness, geographic diversity and need. A score of 70 or more is required to be considered further for funding. Currently applications from the communities of Des Moines, Muscatine and Waterloo have received scores of 70 or more and have been invited to present to the Due Diligence Committee of the Iowa Economic Development Authority Board on Thursday, May 15, 2014 at 2:00 pm. The Due Diligence Committee will make provisional funding recommendations on these application before June 30, 2014. Following provisional approvals, application materials will be placed on the IEDA website for public viewing. The municipalities that receive provisional awards must submit final applications prior to the next pre-application filing window.
For more information on the Reinvestment District program and the process, contact Alaina Santizo, IEDA Project Manager at 515.725.3197 or email@example.com.