City Council Approves Revised Downtown Housing Development Agreement

The fire, the vote, the triumph — when it happens, Decorah News shows up. Support us being there. DECORAH — The Decorah City Council on Monday unanimously approved a revised downtown housing development agreement. The council opened a required public hearing on a proposed development agreement with DREF 105–109 E. Water Street LLC, a procedural step under Iowa law for projects in an urban renewal area. No residents spoke during the hearing, and City Manager Travis Goedken reported that no written comments or objections had been received. The proposed agreement centers on a tax increment financing, or TIF, incentive designed to support redevelopment in the city's central business district. Under the terms, the developer would receive a rebate equal to 100% of the property taxes generated by the project's increased value for 10 years, with total payments capped at $350,000. Goedken stressed the incentive applies only to new value created by the project and does not reduce taxes currently being collected. He said the distinction is often misunderstood but is key to how TIF districts function. Immediately following the hearing, the council approved the development agreement. The project has been under consideration for several years and was previously approved by the council in October 2024. However, it stalled and has since been revised. The updated proposal reduces the scale slightly, now calling for nine residential units instead of 10 and eliminating one building address from the original plan. Despite the changes, Goedken said the agreement remains largely identical to the earlier version and continues to align with the city's Central Business District Urban Renewal Area plan, which was amended in September 2024. Ryan Torbenson, a representative of the development team attending remotely, told the council the project has reached the final stages of predevelopment and credited city staff and local partners for helping move it forward. Torbenson described the effort as a complex, multi-layered financing project involving four tax credit programs: three at the state level and one federal. More than 35 partners are participating, including local investors, banks and revolving loan funds. "More than 20 local owners are expected to be part of the building," Torbenson said. Council members expressed appreciation for the persistence required to bring the project back after delays and noted that increasing housing supply remains a key priority, particularly downtown. Be the first to know! Sign up for the free newsletter and unlock exclusive updates, breaking news, and tips from around the community.