The Storm Lake Times: Top Story

City approves two tax-credit supported housing projects

Developers hail from KC, Twin Cities

by jake kurtz

The Storm Lake City Council approved two resolutions Monday allocating nearly $865,000 in assistance to help get two residential development projects moving.

The aid, according to City Development Director Mike Wilson, is needed as the two development firms, Overland Property Group of Kansas City and Metro Plains LLC of St. Paul. Minn., attempt to secure federal housing tax credits for their respective efforts.

Overland Park Group’s development calls for two 16-unit apartment buildings on a six-acre parcel north of 13th St. and west of Seneca St. The undeveloped property was rezoned for residential use by council members Monday.

The development, Overland Park Group partner Brett Johnson said, will carry a $5.5 million estimated cost and include a community center, playground and garden space.

If the project receives federal tax support and moves forward, the city will contribute $495,000 to the project, or roughly 9%. Of that total, $48,000 is from the city’s standard $1,5000 per unit incentive to offset utility costs. The remaining $447,000 will be paid out over 20 years through rebates from taxes paid by the new facility.

The housing project by Metro Plains LLC would be located on six acres of ground on the east side of the Field of Dreams complex and calls for a 24-unit townhouse development. The total estimated cost is $4 million.

As with Overland Park’s project, should Metro Plains obtain tax credits the city would post $369,000 to the project (9%) with $36,000 through the city’s per-unit incentive. The $333,000 would be paid out over 20 years through rebates and taxes.

The deadline for developers to petition the Iowa Finance Authority for federal housing credits is Feb. 3. Wilson said he is scheduled to meet with IFA officials on Wednesday to explain the dire need for addition Storm Lake housing.

“They are competing against every other (project) that falls into the category in the state,” Wilson said of Overland Park and Metro Plains. “We want them both funded.”