IOWA CITY, Iowa — Officials in eastern Iowa have approved a financing package for a nearly $41 million project where developers plan to construct two buildings that include commercial space, apartments and hotel rooms.

The Iowa City Press-Citizen reports the Iowa City Council unanimously voted Tuesday to support an $8 million tax increment financing package. They also approved a development agreement with the Hieronymus family, Kinseth Hospitality and Hodge Construction.

The financing package calls for seven housing units that are affordable for residents making 60 percent or below the area’s median income.

Economic Development Coordinator Wendy Ford says two of the units are required. Developers can then build the other five units on-site or pay a fee of nearly $81,000 per unit.

City Manager Geoff Fruin says that money would go to the city’s affordable housing fund.


Information from: Iowa City Press-Citizen, http://www.press-citizen.com/