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City and County
City Downtown Interest Buy-Down Rehabilitation Loan and Downtown Facade Improvement Program. This program provides financial incentives to improve storefronts and to rehabilitate existing buildings in the Central Business District. Loan program maximum to apply for is $50,000 over a five (5) year period at 0% interest; funds may be used for structural repair and improvements for the interior or facades of existing buildings. Facade program maximum amount can apply for is $5,000 per facade, $10,000 per owner; reimbursement of 25% of facade improvements with the aforementioned dollar maximums.
City Residential Tax Abatement. This program reduces property taxes paid on qualifying improvements to residential properties. Property owners who have completed improvements to residential properties or apartment buildings can file an application for residential tax abatement. New construction, additions, and remodeling are eligible activities.
Taxes on the improvements are abated for a specific number of years for qualifying projects. The homeowner can select a 3, 5 or 10 year abatement plan. Tax abatement is based on the value that the new improvements add to the property. All other property taxes remain payable.
City Commercial Tax Abatement. The City has adopted a commercial tax abatement plan for a target area, the Rochester North Urban Revitalization Area. This area is generally bounded by Rochester Street to the South, the railroad to the west and North, and by the corporate City Limits to the East.
Eligibility requirements property must be commercially assessed and be within the target area, improvements must increase the assessed value by at least 15%, and qualified improvements must comply with rules and regulations of the City's building and zoning codes and the City Code. Improvements that can qualify for abatement include, new construction, rehabilitation, and additions to existing buildings. Applicants may choose from a 3-year or a 5-year abatement plan.
Tax Abatement Application or contact Planning and Development Department, Room 301 at City Hall, 641-683-0606.
City/County Industrial Tax Exemption. The City has adopted a plan for industrial tax exemption, and the plan applies citywide. Eligibility requirements property must be industrially assessed and be within the city limits, qualified improvements include new construction (see City Code Section 33 1/2-23, new construction).
For an application, please contact the Wapello County Assessor's Office, 101 W. Fourth Street, 641-683-0085. For additional information, please contact Nick Klimek in the City Planning and Development Department, 641-683-0606.
Tax Increment Financing (TIF): City councils or county boards of Supervisors may use property taxes resulting from the increase in taxable valuation due to construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. TIF may be used to pay cost of public improvements and utilities, which will serve the new private development. For additional information, contact Nick Klimek in the City Planning and Development Department, 641-683-0606.
Enterprise Zones: This program provides state tax benefits for business or industry locating or expanding in an enterprise zone. There are also incentives for housing contractors constructing or rehabilitating housing units in an enterprise zone. 3.23 square miles of Ottumwa are within the City's enterprise zone(s). For additional information, contact Nick Klimek in the City's Planning and Development Office, 641-683-0606.
For copies of the State's tip sheet listing incentives and for copies of the program application, contact Amy Johnson, Project Manager, Iowa Department of Economic Development, 200 East Grand Avenue, Des Moines, IA 50309; 515-242-4735; fax, 515-242-4776; e-mail: amy.Johnson@ided.state.ia.us
Applications are processed through the City's Planning and Development Department and are reviewed by the City Council, the Ottumwa Enterprise Zone Commission, and then by the State IDED Board.
Area 15 Regional Planning Commission (RPC)
Self-Employment Loan Program (SELP). RPC administers this loan program designed to provide financial assistance for business start-up's and for assisting very small businesses with expansion. Eligibility requirements Program available when conventional financing is insufficient for completion and successful operation of the project (gap financing); service industry, light manufacturing, new technologies, value-added agriculture & agriculture diversification are the types of business ventures eligible for funding; funds may be used for equipment, machinery, inventory, fixtures and working capital. Maximum amount of loan is $10,000 with a term of 5 years for repayment; interest rate is at a lower rate than that available through conventional financing. For an application and more information, please contact Area 15 Regional Planning Commission, 651 Indian Hills Drive, Bldg. 17, P.O. box 1110, Ottumwa, IA 52501; phone & fax 641/684-6551; e-mail: email@example.com; website at www.area15rpc.com
Regional Economic Development Investments (REDI). RPC administers this loan program designed to support business activities for which conventional financing is not otherwise available (gap financing); purpose of the program is for business start-ups, expansion, or retention of jobs. Eligibility requirements For every $1 of REDI funds, applicant must provide a minimum of $2 match; must be located within the 10-county area under RPC; funds can be used to expand or modernize facilities, to purchase machinery, equipment, fixtures and leasehold improvements, to finance increased receivables and to augment working capital, to construct new commercial buildings, and to purchase existing land and/or structures. Maximum loan is tied to each job created or retained--$5,000 for each one up to a maximum total of $125,000; fixed simple interest rate which will range from 4% to 4 points below prime; term of loan is 3-5 yrs. for working capital and 5-10 yrs. for fixed assets. For an application, please contact the Ottumwa Economic Development Corporation (OEDC), 217 East Main Street, P. O. Box 308, Ottumwa IA. 52501-0308; 641/682-3465; fax 641/682-3466.; firstname.lastname@example.org
Website at www.ottumwadevelopment.org
Small Projects Revolving Loan Fund. RPC administers this loan program to provide low-interest loans to its membership to use to finance special projects within their respective communities or to address emergency situations that may arise; it is intended as gap financing. Eligibility requirements must be a member of RPC; funds may be used to purchase office equipment, computers, supplies, etc., can be used as local match for federal and State grants; can be used to supplement funding of community-wide projects (i.e., Trees Forever, Paint-A-Thons, and special recreational enhancements such as playgrounds equipment/shelters; can be used to implement street identification and house numbering projects, local health and safety projects, funding training for First Responders, Fire Dept. and Law Enforcement personnel; assist with purchase of special equipment necessary for maintenance of city services and protection of the health and safety of residents, i.e., street lighting, street signage; assist in funding infrastructure projects within Community Development Block Grant (CDBG) target areas; assist toward implementing community planning projects (i.e., comprehensive housing surveys, infrastructure evaluations, codification enhancement & enforcement; assist in funding special historic preservation-related surveys; assist in funding projects designed to aid in elimination of blight and other health and safety hazards; assist to supplement special economic projects designed to retain jobs or create new jobs (i.e., promotional campaigns, marketing, and tourism brochures); assist in covering pre-engineering costs related to CDBG regulations for engineering procurement procedures required before pre-applying for CDBG funds. For an application and information, contact Area 15 Regional Planning Commission, 651 Indian Hills Drive, Bldg. 17, P. O. Box 1110 Ottumwa, IA. 52501; phone & fax 641/684-6551; e-mail: email@example.com;Â website at www.area15rpc.com
New Housing Development Revolving Loan Fund for Developers/Builders. RPC administers this loan program to help contractors/developers finance construction of modest, affordable, single-family, owner-occupied housing. Eligibility requirements applicants must certify that homebuyer is at 110% or below HUD's current median income for the county; all homes must be modest, affordable single-family, owner occupied units with a sales price not over $110,000; all new housing units must meet either the Iowa Building Code, HUD's National Manufactured Housing Construction & Safety Standards Code, or USDA-RD's Design Guide, FmHA Instruction 192-A, Guide 2 as based upon CABO One and Two-Family Dwelling Code; all new housing units must meet thermal and lighting efficiency standards as established by the Model Energy Code 1992 edition; all units must meet all local regulations regarding zoning, permitting, inspections; all units are to be inspected by the RPC's housing department; and following loan closing, applicant is required to begin construction within six (6) months. Priority is given to infill development. Maximum loan is $30,000 to be repaid in 12 months. For an application and information, contact Area 15 Regional Planning Commission, 651 Indian Hills Drive, Bldg. 17, P. O. Box 1110, Ottumwa, IA. 52501; phone & fax 641/684-6551; e-mail: firstname.lastname@example.org; website at www.area15rpc.com
Southern Iowa Home Ownership Program. RPC administers this program to assist first-time homebuyers with closing costs and down payment. Eligibility requirements applicant must not have owned or been purchasing a home in the past 3 yrs, or be a single-head of household with dependent children; must be employed within RPC's 10- county region; housing unit must be located in any incorporated city in RPC's 10-county region; must meet income guidelines for county of residence; have loan pre-approved for purchase of home; must pay non-refundable $50 loan application/processing fee. For an application and information, contact AHEAD, Inc. c/o Area 15 RPC, 651 Indian Hills Drive, VCTC, Bldg. 17, P.O. Box 1110, Ottumwa, IA 52501; phone & fax 641-684-6551; e-mail: email@example.com; website at www.area15rpc.com