Charles City, Iowa – The loss of state funds has put the McQuillen project on hold for the near future.
Managing Member of the project Charlie Thompson tells KCHA the Iowa Economic Development Authority had given the project a tax credit in 2013, until McQuillen Place received an informal notice, there was no tax credit.
The bank lenders used the tax credit as collateral, but when they went away, the company couldn’t borrow any money, meaning it left the project to be self-funded. Thompson says it was impossible to sustain that.
The project is now four-years in the making and he adds it should take six months to finish once funding is secured and there’s adequate labor availability. The lenders have filed a petition to foreclose on a mortgage for the project. A legal team is representing the McQuillen Place’s interests.
The project is 90 percent complete despite the current stalemate.