Council approves tax rebates for development firm
Kenyon Hill Ridge is developing apartment complexes, duplexes and single-famiy homes in Webster City
The Webster City City Council on Monday approved property tax rebates for the firm planning to develop housing along Edgewood Drive.
The council approved the agreement with Kenyon Hill Ridge, LLC.
Karla Wetzler, the city’s planning director, said it will allow the firm to collect taxes on the developments, which will include two 30-plex apartments, duplexes, and single-family homes between Van Diest Medical Center and Edgewood Drive.
About $2 million in infrastructure is included in the subdivision.
“This agreement is typical to all the other TIF agreements we do have,” Wetzler said. “The cost that this particular developer is trying to recoup is the cost of infrastructure only.”
Wetzler added, “Since it is for a subdivision for residential development. They have to have certified for state code for 40.58 percent for us to put aside for LMI projects. It can be in that district or any other district to use those funds. Or it can be used for projects we are already doing with set aside monies. It will be an annual appropriation by the City Council. The two payments that would come out every year.”
According to Wetzler, Hamilton County, the Webster City Community School District, and Iowa Central Community College, each approved an additional five years to be added to the 11 years of TIF rebate payments.
“Normally it’s just 11 years,” Wetzler said. “But with 16 years that makes it more viable for them to even do the project.”
Wetzler said essentially the firm is getting their money back on the infrastructure.
“They have every right to take advantage of it,” she said. “And it doesn’t come out of our pocket. If they make the tax increment difference in their taxes that they pay into the county, and then the county reimburses the city. So it’s like they are just getting their money back. It’s when they pay their taxes, then twice a year we will rebate them a certain amount to put towards the $2 million that they are requesting in 16 years.”
Wetzler added, “That incentivizes them to get the housing up so they start collecting taxes as soon as they can. It goes onto duplexes, lots for single-family housing, an independent care living unit. This will be very worthwhile for the community.”
In other business, the council approved a salary increase for Karyl Bonjour, the city clerk.
Bonjour’s salary will increase from $47,923 to $53,673.