Marion City Council to Vote Thursday on Financing Two New Uptown Building Projects

Uptown Marion could see two new interesting building projects starting in the next few months.

But the funding for the building will have to be approved first.

At Thursday night's formal meeting the Marion City Council meeting will consider two different requests for funding in Tax Increment Financing (TIF) from the city to help fund projects in Marion's Central Corridor.

Here is information on the TIF's requested from the city council board packets.

1. Capital Commercial Division LLC is requesting a TIF financing in total of $650,000 from the city out of a $3 million project to replace the abandoned Jiffy Lube at 1204 7th Avenue with a three story multipurpose building including a restaurant, office space, and residential. The TIF payment would come in the form of a $150,000 front end payment and then 10 years of tax rebates that would step down in percentage from 90 percent of total to 10 percent of total over the 10-year period. The property upon completion is estimated to be valued at $3,050,000.

2. Paul and Jeanne Matthews are requesting $50,000 in TIF funds to help renovated Memorial Hall to historical standards, a project that is estimated to cost $300,000 to complete. The property is expected to be valued at $400,000 after completion and the $50,000 will be paid in the form of property tax rebates.

Speaking to Marion Patch last Thursday City Manager Lon Pluckhahn indicated that both projects would start soon if the city payments are approved by the council.

City staff recommends that both TIF requests be granted. Pluckhahn said there is much to be excited about for both projects, particularly as they fulfill the purpose of a urban revitalization district by in one case fixing and in the other case removing old buildings in poor condition. 

Pluckhahn said the Capital Commercial building with its residential space on the top floor and office and restaurant spaces below, and would be close to the new Philip's building already in progress across the street.

"It has been a long time since anyone has built a multistory building in the Uptown area, and this would be two being built at the same time," Pluckhahn said.

Pluckhahn said that Capital Commercial has already done an environmental study on the area and construction would begin almost immediately after a vote of approval.

In the Capitol Commercial TIF request, Steven Stefani wrote that the developer intends to build a property that has a "live, work, and play" philosophy with architecture design that fits the Uptown district. The office space in the second floor would be occupied by Capital Builders with a "home building showroom" and "frontage on 7th Avenue." The bottom floor would feature "a chef operated,  white table cloth restaurant" with a "intimate, high-quality dining experience."

As for Memorial Hall, Pluckhahn said the cost of the project was partially due to the insistance by Paul and Jeanne Matthews to restore the building to historical standards. He said the building was formerly used as a place where military dances were held, and even features changing areas where the soldiers would change into their dress uniforms for the dance.

"That one is pretty exciting because it's probably going to be our first historical renovation project," Pluckhahn said.

In their TIF application letter Paul and Jeanne Matthews wrote:

"The purpose of this development is to renovate a building that is of significant historical value to Uptown Marion. The value of surrounding real estate will increase because of this renovation. Sales tax revenue will increase and jobs will be added to the community. The restored building will add to the collective value of the Uptown Marion Main Street District."

The pair plans to live in the upper floor while offering a commercial space, likely also a restaurant, Pluckhahn said, in the bottom floor. 

For more on the properties, check out the Linn County Assessor's site: Here's the link for the Jiffy Lube building, and here's Memorial Hall.