According to Development Director Ariel Bertran, “the increase in TIF will increase money available for downtown revitalization from the present $150,000 to $1,000,000.” Another $500,000 will be earmarked for administrative expenses associated with increased downtown revitalization, including staffing, accounting, legal and grant-writing expenses. The Planning & Zoning Commission approved the measure by a vote of 7-to-1 at its May 13 meeting, and referred it to the City Council, recommending it give its approval.

Council has previously identified three specific tools it has in effecting revitalization of downtown Webster City, including stabilizing buildings by applying for state and federal grants; assisting private building owners with forgivable loans for building repairs, and in extreme cases, acquiring and demolishing dangerous buildings at taxpayer expense.

In a related economic development move, the council voted to set a public hearing to review a development agreement with Edible Gardens Prairie Hills LLC, the firm that’s acquired the former Natural Shrimp building at 401 Des Moines St., and who plan to invest up to $25 million to turn it into a high-volume, high-protein beverage factory. The hearing date is June 15, 2026 at 6:05 p.m. at City Hall,

Edible Gardens, with headquarters in Belvidere, New Jersey, 69 miles west of New York City, is a leader in controlled environment agriculture (i.e. indoor farming) selling organically-raised fresh produce in a variety of formats. Its present customers include selected Walmart, Target and Kroger, Meijer, Aldi, and ShopRite stores. The firm has an unnamed launch customer for the protein-rich drinks it will produce in Webster City. That business may reach as many as 100 million units per year, according to a press release provided by the company.

Edible Gardens recently obtained a $2.6 million grant from the Iowa Economic Development Authority. Previously, the City of Webster City announced it will support the company with a $6.5 million grant, paid from tax increment financing (TIF) funds over a period of 15 years. The city’s funds would be paid annually on proof that Edible Gardens is on track to reach its goals in establishing the factory and selling its new high-protein drinks.

Council also approved additional incentives for Origin Homes, a wholly-owned subsidiary of Hubbell Realty, West Des Moines, the firm planning to buy three lots in Subdivision Five of Brewer Creek Estates, and build single family spec. homes on them. Although the final selling price can’t be determined at press time, it’s believed they will be similar to those Origin has recently built in Knoxville, and is now building in Panora.

According to The Des Moines Business Record, new Origin 1.5 story and ranch homes, ranging in size from 1,400 to 2,200 square feet, scheduled for completion in mid-summer 2026, will list at prices between $290,000 and $350,000. Origin has sold 10 homes in two phases in Knoxville’s Veteran’s District, as well as 18 more homes in Conrad, Gowrie, Manning and Jefferson. The company broke ground this spring on five new homes in Panora’s Dream Acres development.

As things stand now, Origin will pay only $100 for each of the lots, an extremely low figure for lots that typically sold for thousands of dollars, not hundreds. In defense of the move, city staff and City Manager John Harrenstein believe the city is better off selling these lots, building new homes, and getting them on the tax rolls faster vs. sticking with existing pricing. Since creating Subdivisions 5 and 6 in 2017, the city has sold only 13 of 52 available lots. No new homes were built in Webster City in 2025 and up to now no new home starts are on the books for 2026.

Other terms of the renegotiated deal include a relaxing of escrow requirements, and aligning closing dates with the likely date Origin hopes to receive Workforce Housing Tax Credits from the State of Iowa. The tax credits are ordinarily announced by the end of September each year.

City Attorney Zach Chizek commented the city relaxed its usual mortgage requirements for Origin. A case was cited in which another property developer took out mortgages on vacant lots and used them as collateral for a housing project in another city.

Chizek added he has information Origin hopes to break ground on the new homes yet this year, with completion this time next year. In any case, Origin must start construction of the homes no later than December 1, 2027, or the city can repossess the lots.