New Rear FacadeThe City of Ottumwa has been awarded a $500,000 Community Development Block Grant (CDBG) from the Iowa Economic Development Authority (IEDA) for the upper-story apartment project at 307 East Main Street.
The award is part of a special round of CDBG funding for projects in communities impacted by the COVID-19 pandemic. The funds will support converting the unused second floor space at 307 East Main Street into three apartments. 307 East Main Street was formerly the Iowa State University Building. The total project cost is estimated at $604,000. The City will leverage the existing Downtown Development funds to provide local match in the amount of $15,000. Rod Grooms of RG Property, the building’s owner, will contribute balance of funds.
“This project will complete the transformation of this building which was once at risk of demolition,” said Community Development Director Zach Simonson. “A previous owner had abandoned the property, forcing the City to go to court for the title. We sold the building to its current owners and the change has been remarkable.” When RG Property obtained the building, the rear half of the building was completely ruined. With the help of a Main Street Iowa Challenge Grant, RG Property demolished the rear half of the building and stabilized the remainder of the space.
The housing conversion grant will support developing one two-bedroom and two one-bedroom apartments on the second floor. The building will be open for tours as part of Main Street Ottumwa’s Upstairs Downtown event from 9am to 1pm on Saturday, May 21st. Five other downtown properties will be open to visitors as well. Tickets are available at Hotel Ottumwa for $10. The grant application was completed by Brad Grefe with Area 15 Regional Planning Commission. Grefe has obtained $750,000 in Community Development Block Grant funding for Downtown Ottumwa this year alone. Construction on the apartments will begin this summer.
