A contentious apartment project in Nevada is one step closer to reality.
Despite opposition from multiple Nevada residents and an indecisive council, the former Story County Medical Center at 630 6th Street will be rezoned to make way for a 60-unit apartment complex.
The Capstone Group, Inc. has been working with the Nevada Economic Development Council (NEDC) on the Nevada Flats project.
After initially denying the property rezoning in February, the Nevada City Council voted to approve the change during its regular meeting on Monday, May 12. Instead of an urban family-dwelling district, the property will be a multiple-family-dwelling district.
Ward 4 Rep. Dane Nealson said the city’s role was to rezone the property, since Story County Medical Center sold the building to Capstone.
“We have an opportunity here with a group that is willing to put $10 million into a building to make this happen,” Nealson said. “If it sits there as it’s zoned right now, there’s not a lot that can happen with it.”
The Nevada City Council voted 4-1 on Feb. 10 against rezoning the property. The city council had already approved the first reading of the zoning change after a public hearing in January, but ultimately decided against it after hearing public comments during its February meeting.
The council then reversed its decision again, approving the rezoning on Monday.
Capstone still needs to submit its final site plan before construction can begin, which the NEDC expects to come in the next few weeks. The site plan must also be approved by the council.
Former medical center served residents for decades
The 74-year-old former hospital was split into three facilities − a medical clinic, a hospital and senior care − all of which are vacant. Story Medical Senior Care was the last to depart, occupying one of the buildings until 2024. That facility is now housed at 710 S. 19th Street in Nevada on the campus of the current Story County Medical Center.
The city of Nevada has mulled several options since Story County Medical Center vacated the property. They first considered demolishing the various buildings, but balked at the $2.6 million price tag during discussions in 2022.
The Story County Medical Center, in partnership with the NEDC, thus identified a developer who wanted to renovate the facility for another use.
Proposal receives mixed reviews
Several Nevada residents have been outspoken about their disdain for the apartment project, noting parking and traffic concerns and the impact a new apartment building could have on property values in the “historic” neighborhood.
Marcia Rima spoke during Monday’s meeting, estimating that the apartments won’t be filled.
“This plan is unpopular, and many have stated it’s less than ideal,” Rima said. “The renovated hospital will not appeal to renters. I anticipate these apartments as proposed will sit empty.”
Linda Bartleson said she had serious concerns with increased traffic on a street that “already has speeders.” She said parking issues are “guaranteed” and have been consistently overlooked.
“Our concerns have been articulated clearly and repeatedly, but they continue to be disregarded,” Bartleson said.
Sky Henry from the NEDC reminded the council of the important role housing plays in the community and its future growth.
“We’ve struggled for years to bring restaurants, retail and support service businesses to our community, and the ones that do come often struggle to get their foot in the door,” Henry said. “Adding 60 housing units a few blocks from our Main Street district can bring more foot traffic to those restaurants, bars, bakeries, coffeehouses and other businesses.”
What would Nevada Flats look like?
Nevada Flats is expected to be a market-rate rental housing project. The target renters will be older individuals who want to move into an apartment in addition to young college graduates ready to rent and start their careers.
Capstone Group anticipates the facility would have seven studios, 45 one-bedroom apartments and six two-bedroom apartments.
The company has said it will fill as much of the original structures as it can, and though the outside of the building will get a touch-up, the physical appearance won’t change.
What will it cost to convert the building into a 60-unit apartment building?
The cost to transform the former medical campus into living quarters is estimated to be $7.8 million. Roughly 99% of the construction budget will be awarded to companies owned and operated in Iowa, or organizations that produce their products in Iowa, according to Capstone.
When adding in the “soft costs” banks require for asbestos abatement, cost overruns, contingencies, reserves, design fees, and other expenses, the total project cost exceeds $10 million, according to the City of Nevada.
In 2023, the project was awarded $1 million in State of Iowa Workforce Housing Tax Credits and $1.5 million in State of Iowa Brownfield Tax Credits.
Celia Brocker is a government, crime, political and education reporter for the Ames Tribune. She can be reached at CBrocker@gannett.com
This article originally appeared on Ames Tribune: Nevada approves rezoning for 60-unit apartment project at former hospital. What’s next?
Reporting by Celia Brocker, Ames Tribune / Ames Tribune
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