Knoxville, Iowa
As years pass, change is inevitable. Locally, we now have the ability to choose how that change looks.
Photo courtesy of Forgotten IA
Welcome.
January 15, 2020 marked a historic day for Marion County and the community of Knoxville. I am pleased that Marion County and the City of Knoxville partnered together to obtain the vacant VA campus through agreements with federal and state governmental entities.
What does this agreement mean for our community? The VA campus that has sat vacant and abandoned for several years is now under the control of our local government. The city and the county will work together to bring new life into this land and turn it into a thriving part of the Knoxville community.
Now that we have ownership of the property, our next steps are clear:
I am proud of the work we have accomplished this past year. It is a shining example of why I will always choose Knoxville and Marion County
-Mayor Brian Hatch
What does this agreement mean for our community? The VA campus that has sat vacant and abandoned for several years is now under the control of our local government. The city and the county will work together to bring new life into this land and turn it into a thriving part of the Knoxville community.
Now that we have ownership of the property, our next steps are clear:
- The city and county will immediately begin planning the demolition and development of the area. This will be a multi-phase project that will likely span out over several years.
- Per an agreement with the State Historical Preservation Office, the city and county have negotiated to market the two oldest buildings on the campus for a 60 day period of time. This will be a concentrated effort focused on preserving those buildings according to the Secretary of Interior’s Standards for the Treatment of Historic Properties.
- For years, Knoxville has been proud to be home to the VA hospital. It has played a huge part in Knoxville and the surrounding area for decades, so it is only fitting that we honor the men and women who served our country, as well as the employees and families whose lives have been intertwined with the VA’s legacy for so many years. We plan to name the area the Veteran’s District, and would like to retain the original campus patriotic street names in our development plan. We certainly don’t want this to be the end of a legacy; but the beginning of a new chapter that will breathe renewed life in to the property and our community.
I am proud of the work we have accomplished this past year. It is a shining example of why I will always choose Knoxville and Marion County
-Mayor Brian Hatch
PastThe past is important to remember. Read about the evolution of the campus.
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PresentLearn about the current state of the campus and what work is currently being done.
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FutureThis development project will not happen overnight. Be informed of the phases of development and this land could look like in the future.
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Your Questions Answered
What was the agreement signed on January 15, 2020 between the General Services Administration (GSA) and the State Historical Preservation Office (SHPO) and local officials?
The first agreement with GSA deeds land to Marion County. The second agreement with State Historical Preservation Office is a memorandum of understanding outlining that 2 buildings (27 & 28) will be marketed for purchase for a 60-day period. If private investors express interest within 60 days, the time-frame extends as long as both parties (local entities and private developer) continue in good faith and until an agreement is reached. If no interest is expressed within 60 days, local entities control the future of all structures. Local entities are also required to have an archeological survey performed on specific areas of the campus.
Who now owns the campus?
The deed to the campus is held by Marion County.
How much did the land cost?
The local offer made to the General Services Administration was $1.
Can the existing buildings be preserved, salvaged, or repurposed for other uses?
Looks can be deceiving. From a distance, a passerby could easily be deceived regarding the actual condition of the VA campus. The arboreal nature of the lawns and majestic brick building conceal an unfortunate truth.
All buildings on the campus have been vacant for at least two years. Several closed in 2009 and others have been vacant more than 20 years. Most of the buildings have sat empty, neglected and without maintenance and heat/cooling. This situation has resulted in extensive mold growth, leaking roofs and windows, buckled floors, falling ceilings, peeling lead-based paint, and structural integrity issues that now plague the buildings. Adding to these conditions are a wide range of environmental issues.
Another major challenge at the site is the fact that is was designed to be self-contained, meaning it has its own water tower, electric service, heating plants, cooling, sewerage lagoon, etc., and no connection to modern City utilities. This self-supporting infrastructure is now obsolete, nonfunctional, or in some instances removed entirely from the buildings. Elements of the remaining infrastructure are also contributing to some of the environmental issues at the site. The Iowa Department of Natural Resources has deemed these systems unusable, which subsequently rendered the buildings unusable as well.
Collectively, these prevailing blighted conditions make it impractical and impossible to reclaim most of the area by conservation or rehabilitation
Preliminary cost estimates for demolition of all buildings, removal of asbestos contained in them, and removal or the existing infrastructure runs anywhere between $8-15 million. These costs significantly exceed estimates of the current market values of land.
Before demolition, buildings will be inspected for usefulness.
All buildings on the campus have been vacant for at least two years. Several closed in 2009 and others have been vacant more than 20 years. Most of the buildings have sat empty, neglected and without maintenance and heat/cooling. This situation has resulted in extensive mold growth, leaking roofs and windows, buckled floors, falling ceilings, peeling lead-based paint, and structural integrity issues that now plague the buildings. Adding to these conditions are a wide range of environmental issues.
Another major challenge at the site is the fact that is was designed to be self-contained, meaning it has its own water tower, electric service, heating plants, cooling, sewerage lagoon, etc., and no connection to modern City utilities. This self-supporting infrastructure is now obsolete, nonfunctional, or in some instances removed entirely from the buildings. Elements of the remaining infrastructure are also contributing to some of the environmental issues at the site. The Iowa Department of Natural Resources has deemed these systems unusable, which subsequently rendered the buildings unusable as well.
Collectively, these prevailing blighted conditions make it impractical and impossible to reclaim most of the area by conservation or rehabilitation
Preliminary cost estimates for demolition of all buildings, removal of asbestos contained in them, and removal or the existing infrastructure runs anywhere between $8-15 million. These costs significantly exceed estimates of the current market values of land.
Before demolition, buildings will be inspected for usefulness.
What roles do the City of Knoxville and Marion County play in regard to the land?
Marion County is responsible for taking the property back to development ready, primarily by removing structures and obsolete infrastructure. The City of Knoxville is responsible for putting good infrastructure back and leading day-to-day work towards development.
What will be the primary use of the campus?
Knoxville needs developable land to accommodate future urban growth. With new developable land available, increased housing construction in Knoxville becomes a distinct possibility.
While it can be expected that the principal future use of the VA Lands will be for residential development, some interest in retail commercial development can be expected to occur over time, especially as the residential areas develop.
While it can be expected that the principal future use of the VA Lands will be for residential development, some interest in retail commercial development can be expected to occur over time, especially as the residential areas develop.
WHO WILL ULTIMATELY DEVELOP THE PROPERTY?
The hope of Marion County and the City of Knoxville is to bring in private developers to lead the development process. Local government entities stepped into this project out of necessity to gain local control of that land and to get it ready for development. Public investment is being made to allow for private development, and not for local governments to fill that role.
What are the phases of development?
Looking at the long-term goals, it is anticipated that there will be three primary phases of development of the VA District. A Land Use Strategy Prepared for the City of Knoxville by 571 Polson Developments LLC January 2019 gives more detail to development and can be found here.
Phase 1 is the area available for immediate development. It is located on either side of Pleasant Street, and east of Freedom Drive. Phase I contains the portions of the VA Lands that do not require construction of a lift station prior to their development.
Phase 2 is the second development area. It is located on either side of Pleasant Street, between Independence and Freedom Drives, and runs north to McGregor Road.
Phase 3 should be considered as an area for long term development. It is located west of Independence Drive. Planning for interim use of the Phase 3 lands is recommended given the expected development time frame.
It is important to remember that these phases will take several years each and the land will not refill with building immediately. This project will position Knoxville to be ready for growth for the next several years. It is also important to note that since local governments will be working with private developers, there is significant flexibility built into these phases and their timeframe depends on developer interest.
Phase 1 is the area available for immediate development. It is located on either side of Pleasant Street, and east of Freedom Drive. Phase I contains the portions of the VA Lands that do not require construction of a lift station prior to their development.
Phase 2 is the second development area. It is located on either side of Pleasant Street, between Independence and Freedom Drives, and runs north to McGregor Road.
Phase 3 should be considered as an area for long term development. It is located west of Independence Drive. Planning for interim use of the Phase 3 lands is recommended given the expected development time frame.
It is important to remember that these phases will take several years each and the land will not refill with building immediately. This project will position Knoxville to be ready for growth for the next several years. It is also important to note that since local governments will be working with private developers, there is significant flexibility built into these phases and their timeframe depends on developer interest.
HOW LONG WILL DEVELOPMENT OF THE LAND TAKE?
There is not an exact timeline, but it is important to understand that this project will be completed over several years. It would also not be realistic or good for Knoxville’s real estate market to develop the land too quickly.
WHAT IS THE ESTIMATED COST OF THIS PROJECT?
The largest expense will be demolition of buildings which is estimated between $8-15 million. Other major costs will be tied to infrastructure, but these costs are difficult to estimate at this time. It is possible for private developers to take the share of costs which would change based on what area is being developed at that time.
Phase 1 of the development project will be in areas that do not need a lift station for sanitary sewer service. Development will start with the areas that make the most fiscal sense which will help build momentum and financial support for the rest of the project.
Phase 1 of the development project will be in areas that do not need a lift station for sanitary sewer service. Development will start with the areas that make the most fiscal sense which will help build momentum and financial support for the rest of the project.
WHERE IS THE MONEY COMING FROM TO FINANCE THIS PROJECT?
Marion County will use its bonding capacity to finance the demolition. The City of Knoxville will use a couple of different existing funding sources including Tax Increment Financing (TIF) and operating sources. In the short term, the City hopes to avoid using debt.
WHAT IS TAX INCREMENTS FINANCING (TIF)?
Tax Increment Financing is one of the City of Knoxville’s primary sources of urban renewal funding. Urban renewal districts raise money by borrowing against future growth in property taxes. The city uses the “borrowed” money to pay for capital improvements and repay loans or bonds used for the improvements, which spurs more development. As the city and others invest in the urban renewal area, property values go up.
HOW WILL THIS AFFECT MY TAXES?
The answer to this question is not as simple as having a definite number, only estimations. As it stands today, Marion County will use bond capacity for this VA Project and the Prairie Ridge Development project in Pella. Combing both projects, the County will be selling $20 million worth of bonds. The net effect of this $20 million will be distributed across the county for 20 years. Estimates say that a house assessed at $100,000 could see an impact of around $3.16 dollars per month on their county property tax levy.
It is important to point out that the development of these project will drive the tax levy down. The more that is developed, the more the tax burden will be spread thus lower the monthly impact per household.
This project would not show up on the tax roll until 2021.
It is important to point out that the development of these project will drive the tax levy down. The more that is developed, the more the tax burden will be spread thus lower the monthly impact per household.
This project would not show up on the tax roll until 2021.
WHY DO THE COUNTY & CITY FEEL THIS PROJECT IS NECESSARY?
Over the course of many years, the federal government has made clear it will not be involved nor take responsibility for this property. Local leaders were left with the decision to take action or to see the continual deterioration of this property.
The land will provide opportunity to help solve a problem when it comes to growth which could be contributed to a lack of new housing options. Gaining the campus under local control allows the community of Knoxville to have a say in the change we would see on this land. If local government had not become involved, the property would have been auctioned off to outside entities and the community would lose any control over the future of the property.
The land will provide opportunity to help solve a problem when it comes to growth which could be contributed to a lack of new housing options. Gaining the campus under local control allows the community of Knoxville to have a say in the change we would see on this land. If local government had not become involved, the property would have been auctioned off to outside entities and the community would lose any control over the future of the property.
DOES THIS PROJECT AFFECT MY CURRENT VETERAN’S MEDICAL SERVICES?
No. There have been no VA services offered at the former VA hospital site since 2017. The new VA Community-Based Outpatient Clinic is located at 1607 N Lincoln St, Knoxville. The VA Central Iowa Healthcare System (including the veteran’s hospital) is located at 3600 30th St., Des Moines.
HOW DOES THE CITY INTEND TO MEMORIALIZE AND COMMEMORATE THE KNOXVILLE VA HOSPITAL HISTORIC DISTRICT?
The historical significance of the Knoxville VA District cannot be overstated in its service to this country and our veterans and their families, as well as the economic and intrinsic values it afforded local communities and its employees.
The City does not want the district’s current condition to gloss over the fact that there are lots of memories associated with the Knoxville VA. The site deserves to be memorialized in an appropriate fashion.
Several suggestions have already been received for ways to accomplish this and the City is open to other ideas. Some commemorative elements might include:
The City does not want the district’s current condition to gloss over the fact that there are lots of memories associated with the Knoxville VA. The site deserves to be memorialized in an appropriate fashion.
Several suggestions have already been received for ways to accomplish this and the City is open to other ideas. Some commemorative elements might include:
- Retention of portions of the existing street system
- Installation of a commemorative feature
- Use of names for new streets that are complementary to the existing street names (e.g., Independence, Freedom, Liberty, and Veterans)
- Preservation of the oldest Burr Oak tree
WHAT WILL HAPPEN TO THE TREES?
- Trees offer many positive effects on the image, attractiveness, monetary value, and marketability of a development. The City understands these values and will take into consideration existing trees in its planning and redevelopment process.
- The City is aware of public interest in protecting and preserving the oldest Burr Oak on the VA property, which is located on the Southern Lands section. Planners are already examining possible options to see if this can be accomplished.
- Regrettably, many of the existing trees will be unavoidably impacted by either removal of existing underground infrastructure, demolition of buildings, installation of new streets and public utility access, or establishment of new city blocks.
- A recent report prepared by the Iowa Department of Natural Resources found that more than 35% of the trees on the campus will need to be removed regardless of any activity on the site.