Muscatine's Hawkeye project receives $1 million tax incentive

MUSCATINE, Iowa – An $11.5 million project to convert a former lumber yard in Muscatine into housing and commercial space has been selected for a tax credit from the state of Iowa.

The Hawkeye Lumberyard project at 910 E. Second St. will receive $1 million in tax credits and tax rebates. Iowa Economic Development Authority announced on Tuesday, August 20th.

In addition, according to state officials, a project in Davenport was selected to receive over $312,000 in funding.

Workforce housing tax credits totaling $37 million were announced for 62 housing projects and more than 2,000 housing units across the state. Here to see a full list of award-winning projects.

The construction of a new residential/commercial building on the Hawkeye site will greatly help the community, said Dr. Brad Bark, Mayor of Muscatineand the CEO and President of Greater Muscatine Chamber of Commerce and Industry.

“This strategic location not only offers stunning river views, but also the opportunity to create a vibrant corridor into historic Muscatine, Iowa. This project will enhance our local economy and quality of life. Our vision is to transform the Hawkeye Lumberyard into a mixed-use development that will serve as a gathering place for young professionals, tradespeople and visitors alike,” Dr. Bark told the QCBJ in an email.

The former Hawkeye Lumberyard is located about half a mile from downtown, adjacent to the multi-use riverfront trail and the broader community trail network of over 12 miles; eligible for tax increment financing; and immediately adjacent to the HNI Corporation Headquarters, according to information from the City of Muscatine.

The Hawkeye project calls for the construction of a building that will house 65 market-rate apartments and ground-floor office space. The project has been awarded $688,112 in workforce housing tax credits and $311,888 in sales tax rebates, according to state data.

Construction on the project is scheduled to begin next spring and be completed in fall 2026, Muscatine city officials told QCBJ on Wednesday.

According to the city, the goals of the Hawkeye project include: creating more housing, redeveloping vacant lots, creating human attractions, creating outdoor recreation or green spaces (trails, parks, courtyards, etc.), and providing opportunities to live, work and relax near the river.

Build to measureBettendorf-based company was named the preferred developer for the project.

In addition to the Muscatine project, state officials announced that the Riverview Heights Townhomes project in Davenport was selected for a $312,791 tax abatement. (That money comes from $240,000 in public housing tax credits and $72,791 in sales tax rebates.)

This project will consist of 16 residential units and will be located in the 700 block of East Sixth St., Davenport, according to a Davenport City Council Meeting Agenda.

In May, the Council passed a resolution supporting the filing of a workforce housing tax credit application for the Riverview Heights project.

“As our state grows, our housing supply must keep pace with demand,” Iowa Gov. Reynolds said Tuesday in a press release announcing the tax relief. “Iowans who live close to where they work are often more involved in their community, and that both strengthens the local economy and attracts new residents.”

Debi Durham, director of IEDA and the Iowa Finance Authority, pointed to the recently released WalletHub 2024 report, which states: lists Iowa in first place for the cheapest housing – for the second year in a row.

“We want to maintain this ranking as we plan for the future,” Ms. Durham said in the release. “These incentives are critical to helping more communities attract and retain high-quality businesses and a diverse workforce.”

IEDA received 124 applications totaling $74 million in tax credits. IEDA had $35 million available for fiscal year 2025, with an additional $2 million reallocated from fiscal year 2024. Project applications were competitively evaluated based on readiness, documented funding, community impact, and developer experience.