An upper story apartment project in downtown Jefferson is waiting for one more hurdle to jump before remodeling can begin.

The City of Jefferson recently received a $435,000 Community Development Block Grant from the Iowa Economic Development Authority in September. The grant funds are to be used on three apartments at 200 East State Street. The apartments are located above Heartland Bank and Gravitate. Jefferson resident Chris Deal is also the developer of the project and says there is one more hurdle left to get over, and that is receiving the Iowa Historic Tax Credits.

“So we are in the application process to get those credits. With that (CDBG) grant and assuming and hoping the credit process goes smoothly, goes well, then we would take ownership on the backside of that.”

Deal notes that if they don’t get the tax credits, they would have to re-evaluate the entire project. Currently, the City owns the property and there is a $250,000 purchase agreement that the City Council approved earlier this year with Deal, contingent upon receiving the CDBG grant and the historical tax credits.