Clarity Development to Redevelop Historic Badgerow Building in Sioux City, Iowa
SIOUX CITY, IOWA — The Sioux City Council unanimously approved a development and minimum assessment agreement with Omaha-based Clarity Development for the redevelopment of the historic Badgerow Building in downtown Sioux City. Hunden Strategic Partners, a global real estate development advisory practice headquartered in Chicago, managed the developer solicitation and selection process on behalf of the city.
Clarity plans to purchase the building from the city for $1 million and redevelop it under the name Badgerow Developer LLC. The $23 million project will transform the office building into a mixed-use property with a restaurant, cocktail lounge, Class A office space on the first two floors, 71 market-rate apartments on floors three through 11, and a health club on the top floor. Completion is slated for December 2022.
The developer has committed to a minimum assessed building value of $10.9 million following the project’s completion. In return, the city will provide a grant equal to 100 percent of new incremental property taxes for 10 years and an amount equal to 75 percent of new incremental taxes for an additional five years. The city will also support the developer’s application for historic tax credits and lease nearly 200 parking spaces in the parking ramp system.
Originally constructed in 1933, the Badgerow Building is listed on the National Register of Historic Places. Operated initially as an office building, the property was the tallest building in Sioux City for many years and showcases historic architectural features.