Assistance for a duplex housing project in Fort Dodge was advanced by the City Council Monday night.
The council declared the site of the planned duplexes near Second Avenue South, A Street and U.S. Highway 169 to be a Housing Urban Renewal Area.
Then the council approved the first reading of a measure that would allow tax increment financing to be used there to reimburse the developer for installing a sanitary sewer line. That item must be approved by the council two more times to become effective.
The votes on the housing initiative came in quick succession with no debate. Councilman Dave Flattery was absent from the otherwise unanimous votes.
The first three duplexes in the area called Windstone Circle are expected to be complete by October. Mike McCarville, the project's developer, said construction should begin soon. Another nine duplexes will be built later.
An 8-inch-diameter sanitary sewer will be installed to serve the homes. It is estimated to cost $108,000; interest costs are expected to push its price tag to $147,255.
Under the plan acted on Monday, McCarville's company will install the sewer and the city government will reimburse it using tax increment financing. Tax increment financing occurs when increased property tax revenue from a designated location, in this case the new Housing Urban Renewal Area, is set aside to be reinvested in that area.
When TIF is utilized for a housing project, 40 percent of the revenue must be used for low or moderate income housing anywhere in the city. The Windstone Circle project is expected to generate $58,902 for such housing.
The duplexes weren't the only thing the City Council used TIF for Monday evening.
The council also gave final approval to using TIF to pay for relocating the northernmost portion of the Fort Dodge Nature Trail. The relocation will help to accommodate the expansion of the former Omaha Cold Storage site at 2472 170th St. by BHJ USA Inc.