by Marianne Gasaway
Calling it a “positive investment,” the Clear Lake City Council gave its unanimous approval to a resolution in support of a developer’s application to a state housing tax credit program.
The City has been working with both the landowner, Sukup Ag LLC, and developer BAM Development LLC on a proposed 30-unit townhome project in the new Emerald Edge subdivision north of Highway 18. The site is approximately a five acre tract of land and would be on the west side of a future extension of North 14th Street. The area is zoned RM-20 (Medium-Density Multi-Family). Townhomes are an allowed use within that zoning classification. The targeted price range per unit is $275,000 to $300,000.
Total capital investment is estimated at $7.5 million.
In order to make the project economically viable, the developer is seeking assistance from the Iowa Economic Development Authority’s (IEDA) Workforce Housing Tax Credit Program. The application will be requesting $1 million in tax credits, which is the maximum possible, for a project.
Michael Bousselot, of BAM LLC, told the Council Monday night that he feels confident in the project, but stressed the credits are essential to move forward.
City Administrator Scott Flory said a local match is a requirement of the program. Due to the highly competitive nature of this program and in order to maximize the City’s potential opportunity for funding, it was proposed to match the State request, dollar-for-dollar, through a combination of infrastructure development, in the form of an extension off North 14th Street, and a four-year 100 percent tax abatement or some variation of that abatement schedule that would ensure a not less than dollar-for-dollar pledge to the project.
Council members said they consider the proposed project to be a great opportunity for new housing in Clear Lake, which is something that has been identified as sorely needed.
The proposed townhomes would be constructed using both two-story and single story twin home plans. Those with two bedrooms would have about 1,500 square feet of living space, while three bedroom townhomes would be about 2,000 square feet. All would feature two car garages.
The Fiscal Year 2024 application schedule for the Workforce Housing Tax Credit Program calls for proposals to be submitted by June 9, 2023. It is anticipated an award announcement would occur in August, 2023. Last year there were 133 applications received requesting nearly $80 million in tax credits, however, only 57 projects were funded at a total of $35 million in tax credits.
Another development
in Fieldstone
In September 2022, the City’s Planning and Zoning Commission reviewed the proposed Preliminary Plat for Hanson’s 1st Addition Residential Subdivision, submitted by the landowner, Todd Hanson. The Commission recommended approval, subject to some minor corrections being completed. Part of the cause for the delay between Preliminary Plat review and submittal to the Council involved a change in consulting civil engineers working on the project.
The proposed subdivision lies adjacent to Fieldstone Pond, in the Fieldstone Subdivision Addition, and consists of three building lots. The 3.11 acre parcel of property was part of a previous “Outlet” from an earlier subdivision. The property is zoned RS-5 (Low-Density Single Family Residential. Lots 1 and 2 are half-acre and Lot 3, which is the largest lot, is 1.63 acres. The project involves an extension if the sanitary sewer main, as well as an extension of the North 24th Street cul-de-sac.
The Council unanimously approved the project.
