MUSCATINE — Plans for more housing in Muscatine are moving forward.
A plan to develop up to 62 homes off of West Fulliam Avenue was approved last night by Muscatine City Council. Following the required public hearing as per the proposed development agreement with NPSW Enterprises LLC, the property developer, council passed a resolution approving the development agreement with the company for the Arbor Commons development. In supporting documents, the homes will be market rate, single-family homes.
The resolution included authorizing annual appropriation tax increment payments and pledging certain tax increment revenues to the payment of the agreement, according to the council agenda.
There was no discussion during the public hearing or from council before approving the resolution.
According to the resolution documents, the city will provide up to $750,000 annual tax appropriation payments to the developer.
The resolution also states, "The project will add diversity and generate new opportunities for the Muscatine and Iowa economies" and "The project will generate public gains and benefits, particularly in the creation of new jobs and new housing opportunities, which are warranted in comparison to the amount of the proposed property tax incentives."
Council had been making steps toward the development by NPSW Enterprises LLC over the past few months. In October, council set a date for a public hearing on the expanded Urban Renewal Area and Urban Renewal Plan amendment and approved removing property from the Consolidated Urban Renewal Area.
In November, council held the public hearing and approved a resolution establishing the Urban Renewal Area and approving the plan amendment. Council also approved at that time the first reading of an ordinance creating a TIF District for the Arbor Commons Urban Renewal Area. The second and final reading of the ordinance was approved later that month.
Mike Nolan with NPSW Enterprises LLC first made a request to council in August for tax increment financing for the development.
"The vision is to provide a new opportunity for energy-efficient, mid-market neighborhood in the city of Muscatine," he said.
Nolan said the group noticed much of the current development is in the county, mainly larger lots with higher priced homes that are not affordable.
"The idea here, particularly piggy-backing on the Market Analysis study, is what can we do to stimulate a higher density at a more affordable price point inside of Muscatine."
Nolan said the plan for home pricing wasn't meeting a Department of Housing and Urban Development standard, but will meet a price point the consortium feels isn't being met in the community.