Former Scoreboard building primed for reinvention

A well-known building in downtown Newton will be getting a face lift.

The former Scoreboard Bar, 122 N. Second Ave. W. is in the process of being purchased by Newton Elite Properties, with plans to renovate the structure for a street-level retail space and second story housing unit.

Newton City Council approved an economic development loan for $55,000 and an economic development grant for $5,000 to the developers to assist in the renovations.

“We are super excited about this project. The actual retailer that we are going to have in there, they are going to put in there a modern day mercantile. It will be kind of a farm-to-table agriculture, very upscale. I think it will be a good draw for Newton,” Newton Elite Property owner Julie Prendergast said. “We have a lot of plans, and we are going to get started right away.”

Newton Elite Properties’ purchase agreement was subject to the council’s approval of a real estate development deed for the renovations. The agreement provides a forgivable loan of $55,000 and an economic development grant of $5,000 to facilitate the renovation of the building, contingent upon Newton Elite Properties investing a minimum of $128,000 in private funds, a retail operation or restaurant being established immediately following renovation and a new market-rate apartment completed at the same time.

“One year from the time the council moves forward with the development agreement we would receive a letter from the developers stating they have met all of the agreement points,” city administrator Matt Muckler said. “Once they have done that, they certify that with our finance officer and be signed off on and one-fifth of the debt at that point will be forgiven $11,000.”

For the final four years of the agreement, the developers must continue to ensure the space is operating as retail and second story housing, Muckler said. If they continue to submit a certification letter each year, an additional $11,000 will be deducted from the loan until it is paid in full at the end of five years.

“A key point of what we are doing here, the developer has gone out and is having a private real estate transaction the city is not involved in that at all,” Muckler said. “Where the city gets involved, is after they have made that initial investment, they’re going to then pour an additional $128,000 into the building, in order for the project to be feasible we are going to participate in part of that renovation.”

Councilman Craig Trotter emphasized the importance of addressing the vacant buildings in the downtown, not only for what they can bring to the area but what they can take away.

“I think what is important to remember here is we had a building several years ago fall in because it was not taken care of. It was the green space that is now going to be a parking lot, there was a building that sat there. Because nothing was done with the building, it caved in, and we can’t have that in the middle of the square,” Trotter said. “I think this is great, a great compromise that gets us something in that spot.”

Funds from the North Central TIF District will be used for the loan and grant.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com