Partnership Programs: Building and Site Development

Spec Building Interest Buy-Down Financing

Program description: Interest buy-down to a community economic development organization, city, village or county for the construction of a building to be used for speculative purposes.

Conditions:

• This program cannot be used directly with private developers.
• The construction site of the building must be in the Alliant Energy service territory.
• Interest buy-down continues for 36 months or until the building is either sold, occupied or leased for more than six months, whichever occurs first.
• Minimum size of the building for buy-down purposes is 5,000 square feet.
• The maximum size building for buy-down purposes will be 50,000 square feet, regardless of the building size.  Buildings larger than 100,000 square feet are excluded from this program.
• Speculative building must meet minimum criteria as specified in Speculative Building Guidelines and Checklist. Contact your Economic and Community Development Manager for a current copy.
• The Development of Speculative Buildings, A Practitioner’s Manual, Second Edition 2002 is also available from Alliant Energy and Professional Developers of Iowa (PDI) at www.pdiowa.com.

Award: The formula for calculating interest buy-down is: building square feet x $0.17 per year.

Buildings that will be served both electric and gas by Alliant Energy are eligible for 100 percent of this amount; buildings where Alliant Energy will be the electric provider only are eligible for 75 percent; and buildings where Alliant Energy will serve gas only are eligible for 50 percent.

Sample Calculations:

Example of formula usage for a 10,000 square-foot building in a combination electric & gas locality:
         10,000 sq. ft. x $0.17=$1,700 interest buy-down per year

Example of formula usage for an 80,000 square-foot building in an electric only locality:
         50,000 sq. ft. x $0.17=$8,500 x75% =$6,375 interest buy-down per year

Shovel-Ready Site Development

Program Description:  Financial assistance to help communities develop a shovel-ready site.

Examples of Eligible projects include, but are not limited to:

• Environmental assessments
• Soil borings
• Qualified consulting and engineering fees
  Please consult with your Alliant Energy Economic and Community Development Manager regarding shovel-ready site criteria.

Conditions:

• This program cannot be used directly with private developers.
• Alliant Energy will be the provider of retail electric or natural gas service to the site.
• The minimum size site is 10 acres and must be able to accommodate a 50,000 square foot building.
• Site must be owned or optioned for at least one year by a local government, economic development organization or developer.
• Infrastructure in place, including a paved road adjoining the site and water and sewer service readily available.
• Industrial zoning is approved for the site*
• Sale price for the land is established.
• We do not pay for infrastructure and utility costs.

*A site may be zoned agricultural if the local development organization is maintaining that zoning designation in order to reduce local property tax assessments.

Award: We will pay 40 (forty) percent up to a maximum of $5,000.

                                                                                                                                 

Click here to view a pdf of our Partnership Programs handbook.

Apply for Partnership Programs online