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Agassiz School LIHTC Application Support
On December 17, 2024, the Council approved Resolution 281-2024 supporting proposed terms for the future redevelopment of the former Agassiz Elementary School, located at 608 East Williams Street. The support is tied to a Low-Income Housing Tax Credit (LIHTC) application.
Although CBC Financial was not successful in its previous LIHTC application, the company is resubmitting for the project. Plans include a historic rehabilitation of the existing Agassiz School building, along with construction of an additional building on the site. The total project cost is expected to exceed $10 million and would create 40 new housing units.
The LIHTC program is a competitive federal program and the nation’s largest initiative for creating affordable housing. Units would be available at subsidized rates to families earning between 40% and 60% of the area median income.
CBC Financial previously received a 2022 tax credit award for the Asbury and Sherwood project and has extensive experience with the LIHTC program. With Ottumwa’s recent Thriving Community designation, CBC anticipates a stronger application this round.
Agassiz School holds historic significance as the first landmark on the south side of Ottumwa to be listed on the National Register of Historic Places. Its rehabilitation is considered a priority for historic preservation efforts in the city.
The current resolution expresses City support for the project and proposes Tax Increment Financing rebates from the Agassiz Urban Renewal Area equal to 80% of the total tax increment generated over 15 years, not to exceed $450,000. These are the same terms previously approved under Resolution 281-2024 and Resolution 89-2024.
Final authorization of any financial support would be contingent upon the LIHTC award and approval of a future development agreement.
Essential Corporate Purpose Bonds for FY27 Capital Improvement Plan
The Council is also holding a hearing regarding $2 million in essential corporate purpose bonds related to the Fiscal Year 2027 Capital Improvement Plan.
These bonds will fund infrastructure and capital equipment projects. While separate public hearings are required for essential and general corporate purpose bonds, the issuance will be combined for a total not to exceed $2,950,000. The City’s financial advisor estimates the final issuance will total approximately $2,772,946.
The repayment schedule is structured to maintain a consistent Debt Service Levy of $4.06 per $1,000 of taxable valuation. Under the City’s fiscal policies, the levy cannot fluctuate more than 5% up or down in order to avoid sharp increases or decreases caused by large bond issuances entering or leaving the levy.
However, because this is a revaluation year, maintaining the levy rate could still result in higher tax bills for some property owners due to increased property valuations.
City officials emphasized that these bonds support continued maintenance, equipment purchases, and infrastructure needs for facility growth. They do not include street repairs or sewer separation projects. The funding supports general fund operations while adhering to restrictions on the use of various designated City funds.
Annual Financial Report and Federal Compliance
The Council also reviewed the City of Ottumwa Annual Comprehensive Financial Report, along with the Schedule of Expenditures of Federal Awards and compliance reports under Government Auditing Standards and Uniform Guidance.
The independent auditor’s report, dated February 24, 2026, reflects financial activity through June 30, 2025. The reports were prepared at a cost of $25,000 and provide detailed insight into the City’s financial position and compliance with federal requirements.
Landover Corporation Housing Proposal
Landover Corporation is requesting Council approval of a resolution expressing support for a proposed 40 to 60 unit multifamily or senior housing development in Ottumwa. The project represents an estimated $11 million private investment.
LIHTC applications require documented local support. Approval of the resolution would meet that requirement and confirm the City’s willingness to consider tax abatement as a local match, subject to future approvals.
Previously, on January 6, 2026, the Council adopted Resolution No. 5-2026 supporting the project at an earlier proposed site. The developer has since selected a new location — a 4.06-acre parcel owned by Frase Company Rentals LLC, located within the City’s Urban Revitalization Area.
City officials state the project aligns with Ottumwa’s housing and growth goals and is expected to generate positive long-term fiscal benefits through the creation of new taxable property. There is no immediate budget impact associated with the resolution.
Fire Safety Ordinance – Third Consideration
The Council is also considering the third reading and adoption of Ordinance No. 3254-2026, which would add Sections 14-33 and 14-34 to Chapter 14 of the Municipal Code regarding Fire Protection and Prevention.
The ordinance establishes building occupancy classifications consistent with the International Fire Code and outlines the frequency requirements for periodic fire safety inspections. It also grants authority to issue citations when necessary.
Alta Vista Redevelopment Public Hearing
Finally, Council members are considering Resolution No. 46-2026, which would set a public hearing date regarding a proposed purchase, sale, and development agreement between the City of Ottumwa, AV Ottumwa LLC, and the Greater Ottumwa Development Foundation.
The agreement involves redevelopment of property located at 312 East Alta Vista into a housing complex. The Greater Ottumwa Development Foundation currently holds title to the property.
The proposed agreement would outline terms for transferring the property and establish redevelopment obligations for the project. A public hearing is required before Council consideration of the agreement.
City officials note the redevelopment aligns with the Comprehensive Plan, Council-adopted strategic priorities, and broader housing goals aimed at increasing housing supply and encouraging reinvestment in existing areas of the community.
