Plans are moving forward for a new seven-story development in downtown Iowa City that includes preserving a more than 100-year-old church.

The Iowa City Council took the final steps Tuesday night to approve the development agreement with developer Jesse Allen, which includes providing tax increment financing, also approved Tuesday, to support the $35.1 million project.

The development, known as Augusta Place, will be built on the city-owned parking lot north of City Hall and the land around the Universalist Unitarian Church at the corner of Gilbert Street and Iowa Avenue.

“So many things have been brought together on this, and will be an asset to our city,” Mayor Jim Throgmorton said just before the council approved the development agreement. He added that the project was nearly 18 months in the making.

Previously:Redevelopment plans, series of approvals for UUSIC church site head to council

It includes a two-story parking ramp, lined on the north side by 26 two-story townhomes, stacked in four stories. Plans include a terrace on the third level above the parking ramp. Nearly 100 apartments will fill the third through seventh floors above a portion of the parking ramp on the south side of the development, stretching from Gilbert to Van Buren Street.

There will be six one-bedroom, 67 two-bedroom and 18 three-bedroom apartments, according to proposed plans. There also will be six onsite affordable housing units, which will be sold to the city’s Housing Authority. The development agreement with the city also calls for 12 offsite affordable housing units.

The city will purchase all 60 parking spaces on the first level of the parking ramp for public safety vehicles. There will be 57 spaces for residents on the second level. Plans also include upgrades to entries for the fire station and City Hall.

The city will provide nearly $4.7 million in financial assistance to support the development. Those contributions include TIF rebates of $4.02 million for the commercial and on-site affordable housing components of the project, a forgivable loan in the amount of $650,831 as a discount on the price of the land, and the purchase of 60 parking spaces for $602,843 and six one-bedroom apartments with Housing Authority funds for use as affordable housing at a total price of $1,080,000.

A key part of the development agreement includes preserving the 109-year-old Unitarian Universalist Church, having it rezoned as a historic landmark and restoring the exterior of building to complement the original structure, Economic Development Coordinator Wendy Ford said during Tuesday’s meeting.

The church will be designated for commercial use and renovated to include an elevator, accessible bathrooms and replace its old heating system with a modern HVAC system, Ford told the council. The development’s name, Augusta Place, also honors one of the church’s early ministers, Augusta Jane Chapin, Ford said.

“The project started with Jesse having a vision for saving the church,” council member John Thomas said, adding that there was much community support for the project. “There are lots of ways to look at this project and be pleased with the outcome.”

Construction is expected to begin in the fall and will last about 18 months, Ford said Tuesday. The church must be rezoned as a historic landmark before the property will be transferred to Allen, according to the agreement.

Before approving the development agreement Tuesday night, the also approved a code amendment waived off-street parking requirements for the residential units. The council also approved an urban renewal plan amendment, which amends the city's plan to include the project.