A plan to build some duplex homes in Fort Dodge received a boost Tuesday from the city's Plan and Zoning Commission.
The commission voted to recommend that the site of the planned duplexes on land near Second Avenue South, A Street and U.S. Highway 169 be declared an urban renewal area. Such a desigination would allow the use of tax increment financing there to reimburse the developer for installing a sanitary sewer.
A plan submitted to the city calls for building three duplexes immediately, followed by the remaining nine in future years. The total project is estimated to cost $3,677,550.
Eldon Rossow, of Fort Dodge, is the property owner, and Mike McCarville, of Fort Dodge, is the developer of the duplexes.
The sanitary sewer is estimated to cost $108,000. With interest costs, the price rises to $147,255.
The use of tax increment financing would cover that cost, and generate $58,902 to be used for low and moderate income housing anywhere in Fort Dodge. State law governing tax increment financing for housing requires that 40 percent of the revenue generated be set aside for low to moderate income housing projects, according to Vickie Reeck, the city's community development manager.
Tax increment financing occurs when increased property tax revenue from a desiginated area is reserved to be reinvested in that area.
Commission members Denny Crimmins, Steve Kersten, Jo Seltz and Lisa Wilson voted to recommend approval of the urban renewal area. Commission members Mike Doyle and Jim Kesterson abstained.
The issue now goes to the City Council, which will consider it on July 9. During a workshop discussion at Monday's council meeting, the majority of the elected officials said they were in favor of the proposal.