SIOUX CITY — Sioux City Council will be asked Monday to amend the urban renewal plan so a developer can convert the long-vacant old Novelty Machine building into residential units and commercial space.
If approved, the amendment would also greenlight Lechner Lumber’s construction of a new facility at the northeast corner of Floyd Boulevard and Fourth Street.
For the city to provide financial assistance for both projects, council must approve a resolution adopting an amendment to the Combined Central Sioux City-CBD Urban Renewal Plan.
The former Novelty Machine Building, 901 Fifth St., has been vacant for nearly 20 years. According to documents filed with the city, an unnamed local developer has the property under contract and intends to convert the building into 25,000 square feet of residential space consisting of 21 residential units and 5,000 square feet of space. commercial. The developer plans to invest over $3.3 million in the project.
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The documents indicate that city staff are working to finalize a development agreement, which would offer property tax rebates to the developer on new additional taxes created by adding value to the property for a period of up to 10 years. The City’s financial assistance for the project is estimated at approximately $750,000.
Lechner Lumber, a full-service supplier of building materials to commercial and residential customers, plans to move operations to new facilities on Floyd Boulevard and Fourth Street. The company currently leases space at 200 S. Court St.
The new location will include an office and two warehouses with an entrance facing Fifth Street. The project represents a capital investment of $1.4 million. The company will retain all nine employees, according to city documents.