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Seek tax break for new $10 million Toledo assisted living, memory care complex

Toledo City Council Decision May Be Deciding Factor For Construction

May 22, 2019
By John Speer - Editor ( , Toledo Chronicle, Tama News-Herald

How the Toledo City Council comes to terms with a request for a tax abatement or possible TIFF designation could determine the fate of a major construction project in the city.

Mark Holtkamp, a Solon, Iowa, developer, told council members he wants to build a $10 million 40-unit assisted living complex with an accompanying 12-unit memory care facility.

The hitch is Holtkamp says he needs a 15-year-long 100 percent tax abatement for the project to be feasible. Council members were quick to respond the Iowa Code only allows a period not exceeding 10 years.

Article Photos

Plat shows location - marked “area” - of proposed assisted living center - memory care unit on Toledo’s southwest side.

If some agreement were reached, Holtkamp said he was ready to hire an architect and "move dirt by fall." He estimated the work would take about one year to complete when asked for a timeline by Mayor pro tem Brian Sokol.

Some discussion of a Tax Increment Financing (TIF) district for the property ensued, but the location is not currently in a TIF area of the city. The council indicated they would further explore options with Bob Josten, the city's bonding attorney.

The location is bordered by 2nd Avenue, Grandview Drive and Fee Street on the city's southwest side.

The property, owned by Paul and Rebecca Chyma, is located west of the Chyma Machine Shop and east across Fee Street from the Deer Creek Medical Center.

The Toledo Planning and Zoning Commission voted 5-0 on April 25 to recommend to the council the Chymas' request to rezone the property from agricultural, light industry and business to R-3- multiple family residential.

At that meeting Holtkamp was identified as the prospective purchaser of the property. Under questioning by Planning and Zoning member Chester Bearden, Holtkamp said the deal was contingent upon approval of the zoning change and tax abatement.

Holtkamp told council members during the May 13 meeting he is the owner of a pair of similar facilities in Iowa and one in Nebraska. In addition he said he is in negotiations for construction of facilities in Cedar Rapids and two other Iowa locations. He said a second round of discussion was coming up in Cedar Rapids about that proposal.

Hrabak Lumber Abatement

A tax abatement for Hrabak Lumber, 701 Business Highway 30 West, for a new 24 ft. x 40 ft. showroom and 24 ft. x 26 ft.garage and storage to be attached to the west end of the flooring store area received council approval.

The additions will be eligible for a 100 percent abatement for three years for the actual value of the improvements.

Building Permits

The council reviewed building permits issued for the following: Denny Gorsch, 407 S. Main, 8 ft. c 10 ft. shed $4,000; Paul Chyma, 205 2nd Ave., 20 ft. x 56 ft. lean to addition to east side of building $30,000; Melchor Hernandez, 501 E. Carleton, grind curb off for additional driveway $1000; Aljandra Cervantes, 203 W. Madison, addition to sidewalk; Skip Wilson, 602 E. Grace, 17 ft. x 20 ft. deck, $1,000; Kevin and amanda Harkin, 700 E. Carleton, chain link and vinyl fencing $6,800; Dalea Fuentes, 404 E. Vine, addition to driveway $1,000; El Charro, 202 Business Highway 30 West, 12 ft. x 30 ft. deck on west side of building $6,000; Goodwill / DJK Ridout Properties, 1008 s. County Rd., business sign erection $9,000; and Tama-Toledo Storage, Commercial Street, additional storage unit $30,000.

In other business on May 13 the council approved:

a street closure request from Bumblebees for the portion of the street in front of the business from 7 p.m. May 17, to Sunday, May 19 for a fund-raising event.

a street closure request for the Toledo American Legion Post 72 for the July 5 Stoplight Festival for events observing he 100th anniversary of the American Legion.

renewal of a Bureau of Indian Affairs wildland fire management agreement with the Toledo Fire Department.

the sum of 25 cents per hour raise in accordance with city policy for City Clerk Kim McAdoo for obtaining the designation of Iowa Certified Municipal Clerk.

hiring Sean McFate as a public works employee.



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