Monticello looks into historic district designation

Monticello is pursuing a designation as a Commercial Historic District for the downtown area. 

During the Oct. 7 city council meeting, Jones County Economic Development (JCED) Director Derek Lumsden explained the process to the council, saying it would benefit the city down the line should Monticello want to re-apply for the Main Street Iowa (MSI) Community designation as well. 

In order to cover the costs, however, of the application, Lumsden planned to apply for a Jones County Community Foundation grant. The funding would also cover the costs of an architectural historian to assist with the paperwork/application process. 

“As Monticello learned from their Main Street Iowa application, Monticello has some great historic integrity and is worth preserving moving forward,” stated Lumsden. He said the historic district designation would make Monticello’s MSI application stronger in the future. 

Lumsden said focusing on historic preservation, especially in downtown Monticello, is a good start. 

“Currently, the city is looking at options including potential preservation of the old Compadres building,” continued Lumsden. “Discussions have also started, and will continue in the coming months, with regard to the potential future uses of the current middle school upon opening the new middle school. Both of these projects are fundamental historic preservation projects.” 

Lumsden said he has been in contact with an architectural historian. After a walk-through of downtown Monticello, the historian “believes there is the potential for a Commercial Historic District.” 

In addition, Lumsden said the designation could be a tourism boost for Monticello as well. “Heritage tourism is a $4 billion a year industry,” added Lumsden. 

The designation would also help downtown business/ building owners. 

“They would be eligible for state and federal historic tax credits, which can attribute up to 45 percent on qualified rehabilitation costs of a project,” explained Lumsden. “These tax credits can be coupled with other monies and grants to give more leverage when trying to fund renovation and rehabilitation repairs.” 

Rehabilitation said the goal is to have the designation done by June 2020. 

So where does the cost (grant) come in? 

The cost for an architectural historian is $75 an hour, with a not-to-exceed cost of $20,000. The City of Monticello was asked to commit $5,000 to $8,000 toward the effort. The remaining funds would hopefully be covered by grant opportunities. 

Lumsden plans to apply for the grant, using JCED as the applicant, but the City of Monticello as the fiscal agent. 

The council approved Lumsden’s proposal, to serve as the fiscal agent at a not-to-exceed amount of $8,000. 

Council member Tom Yeoman asked about any restrictions the historic designation could place on property owners. Lumsden said there are no restrictions. 

“As long as they abide by city and state codes,” he said. “The National Register has no restrictions. If you want the funding (tax incentives), you will have to jump through some hoops.” 

Lumsden added that the restrictions only apply when an owner plans to utilize the tax incentives.