Tonight, at the Marshalltown City Council meeting, there will be a discussion about using TIF for the new Marshalltown Mall owner with a development agreement.  John Hall, Marshalltown Area Chamber of Commerce President and CEO, gives a peak behind the curtain on how these negotiations work.

Overall the new Mall Owners, Reserve Development, would get a $7.25 million in TIF, Tax Increment Financing.  The agreement gives them a 90% property tax rebate for years 1 – 3 and it eventually drops to 20% in years 18 – 20.  There are some performances clauses for Reserve Development.

In the development agreement, the proposed redevelopment includes $2 million in site work, $2.4 million in façade improvements, and over $17million in interior work.

Jeff Strong, with Reserve Development, told KFJB he was planning to spend more than $30 million when purchasing the mall and renovating it.  Once this agreement is in place, they can begin signing leases with businesses who want to come to Marshalltown.

Zach Tomesch, News Director KFJB