If approved, the amendment would also greenlight Lechner Lumber’s construction of a new facility on the northeast corner of Floyd Boulevard and Fourth Street.

In order for the city to provide financial assistance for both projects, the council must approve a resolution adopting an amendment to the Combined Central Sioux City–CBD Urban Renewal Plan. 

The former Novelty Machine Building, 901 Fifth St., has been vacant for nearly 20 years. According to documents filed with the city, an unnamed local developer has the property under contract and intends to convert the building into 25,000 square feet of residential space consisting of 21 residential units and 5,000 square feet of commercial space. The developer plans to invest more than $3.3 million in the project. 

The documents state that city staff are working to finalize a development agreement, which would provide property tax rebates to the developer on the new incremental taxes created by the value added to the property for a period of up to 10 years. Financial assistance for the project from the city is estimated at approximately $750,000.

Lechner Lumber, a full-service supplier of building materials for commercial and residential customers, plans to relocate its operations to the new facility at Floyd Boulevard and Fourth Street. The company currently leases space at 200 S. Court St. 

The new location will include an office and two warehouse facilities with an entrance off Fifth Street. The project represents a capital investment of $1.4 million. The company will retain all nine employees, according to city documents.