It remains to be seen whether or not the City of Marshalltown will get involved in a housing development partnership. At the regular Monday meeting, city administrator Jessica Kinser spoke to Marshalltown City Council about a partnership between HCI and JBS to build a multi-family residential complex south of Olive Street.
The development would require an extension of South Seventh Avenue at a cost of $ 1.46 million.
“We want South Seventh Avenue to be a passing street to finally, in this overview, establish this link with Southridge”, she said.
Kinser said some infrastructure is already in place but is not complete and would require funding. She said it would be similar to the partnership with Kading Properties in terms of streets, sewers and storm sewers being the responsibility of the city to pay. Hydraulic infrastructures, design plans and specifications and construction supervision would be the responsibility of the promoter.
“The big question is how to fund $ 1.46 million,” Kinser said. “There is no simple answer to that, nor a simple answer like the one we had with the other two projects.”
She briefly presented four possible financing options:
• General obligations. Kinser told council they will have a discussion on the links soon as the city has a lot of competing priorities.
• Road use tax. She said the city had received $ 246,000 from the Iowa Department of Transportation. It was neither planned nor budgeted.
• LOST council designation fund (local option sales tax)
• The recently adopted federal US bailout, from which Marshalltown receives $ 3.7 million and can be used for storm water and sewage infrastructure. However, Kinser said it doesn’t appear that the city can use it for road construction. She predicts that further discussions will take place on how the city can spend the US bailout funds.
“I wanted to bring this question to you tonight so that the developer has direction and we as staff have instructions on whether or not this is an infrastructure partnership that you would like to participate in. , “ Kinser said.
She said the project had been put on the agenda to see if council was interested and added that it could be discussed again at the May 24 meeting.
Councilor Gabe Isom asked what percentage of the $ 1.46 million the stormwater cost would include. CGA’s Heather Thomas estimated it would cost $ 100,000. Isom said that leaves a lot to pay for, but he finds it hard to think of the project as something not to prioritize.
“Just for the immediate need and future potential from the point of view of housing”, he said.
City Councilor Gary Thompson agreed the city needs to think about properties that can be developed, but doesn’t think that’s the answer, as development would be limited to the east side of the road. He believed the other side was in a floodplain. Director of Community Housing Development Michelle Spohnheimer told Thompson he was right, but further east there are farm properties that could contain housing.
“I think this is a very important corridor and that the return on investment would be in the long term”, she said.
Thompson said a road may be needed there, but it should be placed further east.
“I just don’t see how this is the best money we can spend without developing both sides of the street,” he said.
Spohnheimer said there are a lot of different things going on in the area, like stormwater retention, and the typography doesn’t allow a street to pass. The city would have 90 acres to serve with this connection. Thompson said he just didn’t want to put the cart before the horse.
“I don’t see it putting it on the taxpayer in this location, and I can’t see it putting it on the developer,” he said.
In other cases:
• Marshalltown Police Chief Mike Tupper presented Constable Stephen Sheets with the 2021 Employee of the Year Award, sponsored by The Times-Republican.
• The board approved the acceptance of Marshalltown’s marketing proposals. The idea is to hire someone or an organization in Marshalltown to market the city and its features. Since the Iowa Valley Community College District will no longer be producing materials to market Marshalltown to residents as of July 7, the city would like to have additional options. Marketing will not exceed $ 40,000. Interested persons must submit a proposal by June 7th. Kinser said the city would like a variety of choices – videos, table decorations, social media and more.
Contact Lana Bradstream at 641-753-6611 or [email protected]