A downtown building project in Jefferson continues to take steps forward.

The Jefferson City Council recently approved a $500,000 Community Development Block Grant  application for upper story living through the Iowa Economic Development Authority to renovate five second story apartments of the former Ace Hardware, now Public House building at 123 North Chestnut Street. Region XII Housing Programs Coordinator Karla Janning said the total project cost is $966,294, and along with the funding from the awarded $75,000 Challenge Grant through Main Street Iowa, private loans, owner equity and state historical tax credits will fulfill the funding gap. Janning noted that five of the apartments would qualify for low-to-medium income and 80-percent of the area median income. 

Owners Amanda and Addi Bills purchased the 1932 building in 2019. If they are awarded the CDBG grant, they plan to not only have the apartments completed, but also their business class restaurant on the main floor. Amanda talked about the condition of the apartments and some plans to renovate them.

“They’re in pretty poor condition. Three of them had updates in the 80s from (the previous owner) Don Orris and two of them have been inhabited for several decades. So the actual footprint isn’t really changing. There’s a few bathrooms that have a really awkward, narroway to squeeze through and they’re not functionable. So that would change a little bit, but for the most part the footprint is staying the same.”

Chris Deal and his engineering company explained what would happen to the apartment project if the upper story grant was not awarded.

“If these funds would not come through then step back and look at scope modifications. Maybe it becomes a phased project, maybe it becomes some changes to how the apartments are going to be done, maybe it becomes a first floor build out, then there has to be some of those harder decisions.”

Janning noted that this grant is awarded on a first come, first served basis as the $10 million is through funding by the federal American Rescue Plan.