Clear Lake city leaders are looking forward to seeing dirt fly on a new housing development before the snow flies. Monday night the Council gave its unanimous approval to a development agreement with the owners of seven and one-half acres on South Shore Drive.
“We don’t look at wants and needs, we look at needs and in this community— there is a need for housing,” said Mayor Nelson Crabb. “I do believe we are headed in the right direction for our housing need.”
AKK Investment Properties LLC, of Webster City, plans to develop a 23 lot residential subdivision just off South Shore Drive near Clear Lake State Park. A zoning change from RS-5 (single family low density residential) to RS-8 (medium density single family residential) was approved earlier. The change was needed to enable the construction of some twin homes within the new subdivision.
The developer plans to begin site rough grading by Nov. 15. Their goal is to have foundations in place before winter on four of the twin home lots.
Monday, a development agreement with the owners was approved to offset some of the costs of development. The City will assist through the purchase of main line pipe materials, such as storm sewer, water main and sanitary sewer. According to City Administrator Scott Flory, the estimated cost of the pipe materials is approximately $110,000, with a maximum not to exceed $150,000. The City will purchase pipe material upfront and the developer will sign a promissory note the endure development of the subdivision.
The City also will engage PlanScape Partners to prepare an Urban Revitalization plan for the subdivision. Flory explained the purpose of the plan is to provide a partial abatement from property taxes to the future purchasers of the homes in the development. The homes would need to be owner occupied in order to qualify. The abatement is limited to 100 percent on the first $75,000 worth of “assessed” valuation.
The City has had similar programs in other subdivisions. Flory reported that in the Pine Brooke Subdivision it equated to about $950 in property tax savings annually for five years.
