Pictured: Dalton Hansen of MW Capital Group 2 (center) presents to the Carroll City Council during their July 22, 2024 meeting
The Carroll City Council pressed a representative from the new owners of the Fairview Village Apartments during their meeting last night (Monday) on the development group’s plans to return its 72 units to the community’s housing stock. MW Capital Group 2 purchased all but one of the buildings in the complex earlier this year and plans to invest nearly $800,000 into the property, interior and exterior. Dalton Hansen, MW Capital’s representative, attended Monday’s meeting to address the council’s concerns about the complex’s future. MW Capital Group applied for housing tax credits from the Iowa Economic Development Authority (IEDA) to help finance those renovations, but their application was denied due to a lack of a resolution of financial commitment to the project from the council. One of the council’s issues with the prior owners was Fairview’s enrollment in the USDA’s rural housing programs. Hansen says MW Capital plans to withdraw from that, but it takes time.
Hansen says they don’t want to extend that process any longer than necessary, so they are following USDA’s requirements to the letter. As it stands, only a handful of the units are occupied or ready to be occupied. At-Large Councilwoman JJ Schreck says law enforcement spent significant time policing that area before it was majority vacant and questions how that won’t become a problem again when tenants return.
Schreck questions the effectiveness of MW Capital’s vetting process and notes that a current tenant was approved despite a history of issues with previous landlords. Ward 4 Councilwoman Carolyn Siemann says she hears regularly from Carroll residents about the complex’s outward appearance and wants reassurances that those issues will be addressed.
Hansen says they have staff based out of Iowa City and Sioux City that spend their workweeks in Carroll overseeing the property, and they will be directed to ensure the exterior is maintained to the council’s expectations. Former Mayor Mark Beardmore addressed the council during the discussion, expressing concerns about a letter of support for MW Capital’s tax credit application. He notes the council never formally approved any financial support. City Manager Aaron Kooiker says the letter that was submitted was an attempt to help MW Capital receive the tax credits, but it did not commit the city to anything specific.
The council appears unlikely to approve MW Capital’s initial request for a 10-year, 100-percent tax abatement on improvements to the property. IEDA does not award housing tax credits again until June 2025, and the council indicated they would consider some form of financial support if MW Capital shows they are committed to addressing the community’s concerns about Fairview. Monday’s discussion lasted nearly an hour, and a link to the council video is included below.
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