Siouxland Magazine - Volume 3 Issue 3
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Attracting Business and Industry to Our Community<br />
By Alex Watters<br />
Having served on the City Council for the<br />
last four years, I hear from many constituents<br />
regarding their hopes for the future, frustrations,<br />
and occasionally, things that are going well.<br />
Some of the conversations that I enjoy most are<br />
brainstorming about what our future could look like and<br />
what businesses, restaurants, stores, or even housing<br />
options they would recruit or incentivize to come to<br />
Sioux City. However, one thing I have learned is that it<br />
is never that easy. Economic Development uses several<br />
tools to attract business and industry to our community;<br />
here are some examples.<br />
<strong>Siouxland</strong> <strong>Magazine</strong> | Converse / 17<br />
• Shovel-ready sites - Land that is ready for development<br />
and fully served by infrastructure (e.g., roads, water,<br />
sewer, electric, gas, etc.) is more attractive to a company<br />
and expedites the location selection process. Shovelready<br />
sites have been instrumental in attracting and<br />
retaining large-scale developments in Sioux City like<br />
Seaboard Triumph Foods and Sabre Industries.<br />
• Tax Increment Financing (TIF) - TIF is the City’s most<br />
versatile and helpful tool for encouraging economic<br />
development. The increase in taxes generated by a TIF<br />
district project can be captured by the City for use in<br />
financing public improvements. Examples in the city<br />
where a TIF has been used to accomplish significant<br />
commercial developments include Lakeport Commons<br />
and Sunnybrook Plaza and construct the industrial<br />
infrastructure needed in each of the City’s business<br />
parks. TIFs have also been used to assist developers<br />
with the revitalization of historic buildings downtown,<br />
leading to renovated storefronts for new retailers and<br />
restaurants to locate. TIF can also provide the flexibility<br />
to offer such incentives as property tax rebates and<br />
other creative scenarios to meet the unique needs of a<br />
specific project or company.<br />
• Workforce Housing Tax Credit Program - This State<br />
program provides tax benefits to developers who<br />
create housing in Iowa communities and focuses<br />
primarily on projects that use abandoned, empty or<br />
dilapidated properties. Several projects in Sioux City<br />
have received funding through this program, including<br />
Virginia Square, Bluebird Flats, Urbane 1220, and The<br />
Summit at Sunnybrook, to name a few. Currently, there<br />
is a $13 million backlog of projects statewide, and the<br />
Governor is proposing to add $50 million into this<br />
program annually for three years. These tax benefits<br />
are essential to keep the housing costs down and<br />
continue housing development in Sioux City.<br />
• Façade Improvement Program- The Façade<br />
Improvement Programs are in place to improve<br />
the aesthetic appearance of the exterior façades of<br />
buildings and businesses in the project areas, to restore<br />
W. 7th St. recently got an entire makeover. A number of<br />
businesses took advantage of the façade improvement<br />
program. Lessman Lighting’s improvement is a great<br />
example!<br />
the unique character of buildings in the area as much<br />
as practicable, and to encourage private investment in<br />
properties and businesses. The property owner must<br />
provide a 25% match to the funding award and sign<br />
a promissory note and mortgage, which forgives the<br />
loan amount over five years. For example, if a property<br />
owner has a project to replace exterior windows, repair<br />
brickwork, and improve accessibility to the building<br />
at a total cost of $30,000, the city would participate in<br />
the project at $22,500 in the property owner would be<br />
responsible for $7500!<br />
Our community has experienced tremendous growth<br />
and expansion in recent years, earning a number one<br />
ranking in 2021 for small-size metro areas with the most<br />
economic development projects happening for the eighth<br />
time since 2007. Incentivizing businesses and industries<br />
to come to our community can be a complicated dance,<br />
but I’m optimistic for our future. In my opinion, we must<br />
continue to diversify and recruit varied industries, stores,<br />
and restaurants. If you have business and industry ideas<br />
that you would like to see expand into Sioux City, please<br />
reach out!<br />
Alex Watters, City Council of Sioux City<br />
awatters@sioux-city.org.<br />
Photos Contributed by City of Sioux City.
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