MUSCATINE, Iowa - Pearl City Station's damage from the 2008 floods will be wiped away with Federal Emergency Management Agency funds and tax increment financing.

A majority of the $841,955 project will be funded by FEMA, which has agreed to fund $516,096 in repairs needed on Pearl City Station because of flood damage in the summer of 2008. The work, which has an estimated cost of $722,100, will be done by Hybrand Industrial Contractors of Muscatine.

Money for the rest of the work will come from the tax-increment financing, which is a way local governments can use future gains in property tax collections from a specified area to finance improvements in that district. In theory, the improvements are supposed to help create the conditions for those future gains in property assessments and property tax collections.

The bulkhead, southeast corner of the building and adjoining paved areas were heavily damaged.

"We're excited this project is moving forward," Parks and Recreation director Rich Klimes said. "We're excited it's going to be put back in a condition that's usable."

The FEMA funds will pay for engineering, permitting for a federal waterway, surveying and other pre-contract costs, Klimes said.

"It really won't cost the taxpayers a penny," Klimes said.

At Thursday's Muscatine City Council meeting, the decision to move forward was met with disagreement.

Councilman Jerry Lange, Third Ward, said he "does not believe in investments of $850,000 as a sound or necessary investment."

Lange agreed to use the FEMA dollars but found error in utilizing additional TIF funds, used for downtown repairs.

"These are still tax dollars," Lange said. "This building will continue to sustain damages every year the Mississippi River rises."

Klimes said the improvements, however, will actually prevent further damage.

"The whole idea of the improvements is to make it flood-resistant, easier to maintain," Klimes said. "This design will make it usable to the casual observer and to make a reservation of the space."

Councilman Philip Fitzgerald, First Ward, said he supports the project.

"It's shortsighted to think we'll fix the bulkhead but not fix the building to make it usable," Fitzgerald said.

Though Lange and Fourth Ward Councilman Bob Bynum opposed the motion, it passed 4-2.

Klimes said more than 140 events are hosted at Pearl City Station every year. Though its value is between $200,000 and $300,000, Fitzgerald said restoring the building is important to the riverfront improvements.

"It's a great piece of the riverfront," said Bill Trent, a former city council member and riverfront advocate. "I appreciate the comments, but if you're gonna do it, do it right."

At-Large Councilman Osama Shihadeh said although he supports the project, he would like the Council to "get creative" to find ways to market other event locations in Muscatine.

"We should utilize the other buildings we have," Shihadeh said.

Klimes said the next step will be to approve the contract and bond at the Nov. 12 Council meeting, allowing Hybrand to start construction right away. He is unsure how long the project will take, but estimates a majority to be completed by the end of the construction season this year.

Klimes said he is hoping to "fast track" the process because of expected inclement weather.

"We don't want to rush the contractors, either," he said.

Councilwoman Dyann Roby, 5th Ward, said she was relieved the Council waited to make a decision until FEMA and TIF funds were final.

"It was worth waiting and being persistent," Roby said.