Council to discuss St. Joe's, riverfront development
Friday, August 30, 2019
OTTUMWA — The delays with demolition of St. Joseph Hospital will cost Blackbird a significant amount of money.
City council members are being asked to approve an amendment to the agreement with 312 E. Alta Vista, the limited liability company set up by Blackbird Investments to handle development of the St. Joseph Hospital site. The amendment finds the developer in default.
Demolition was supposed to be complete by Sept. 1, 2018. But when progress stalled amid a pay dispute between the company and the contractor, Blackbird missed the deadline. The work resumed in late July, and progress has been swift. The new deadline for completion is Dec. 15.
The city’s action will change the deadlines in its agreement for tax incentives for the site. It does not change the dates for the rebatement, though, meaning Blackbird will effectively miss out on a year’s worth of money.