The City of Jefferson is hoping lightning strikes twice with a statewide grant for upper story living.

The Jefferson City Council approved at their regular meeting on Tuesday a technical assistance contract that authorized Region XII Council of Governments to apply, on behalf of the city, for a Community Development Block Grant to rehabilitate six apartments above the former Ace Hardware store, now The Public House at 123 North Chestnut Street. 

The building was purchased by Amanda and Addi Bills in 2019. Amanda told the Council they still plan to open a business class restaurant on the main floor, but they also wanted to rehab the upper story into apartments. City Administrator Mike Palmer describes the contract with Region XII.

“What we agreed is (to) put Region XII under contract for $1,000 to apply for this money. The city is the applicant. The money will actually be used through the private developer to upgrade those apartments. I believe they are going to be asking for up to $500,000 in this CDBG grant.”   

The city was awarded a similar grant last year for $435,000 CDBG grant for three upper story apartments at 200 East State Street, above Heartland Bank and Gravitate Co-working. Palmer notes the process is the same as what was applied for last year and if awarded, he adds, there will be a development agreement between the City and the Bills. 

There is up to $10 million of grant funds available through Iowa Economic Development Authority.