The Jefferson City Council recently heard about a new housing proposal.

Greene County Development Corporation President Sid Jones pitched the Council about a housing incentive program that could entice developers to build in the city. He talked with developer Andy Rowland and used the example of a $200,000 assessed home with an estimated property tax of $4,400. Jones talked with the Greene County Assessor and one-third of those taxes would go to the city, another one-third to the school district, and the final one-third to the other taxing entities. 

Jones then mentioned that if the city gave $15,000 to the developer, as an incentive, then it would take the city about 9.3 years to recoup that amount, once an occupancy permit was issued. He described the bigger picture with this type of housing program.

“Wild imagination, what would happen if this spurred enough interest that we could build 20 new homes in one year? That would cost the city $300,000. I think (it’s) a pretty good investment and an investment that allows a lot larger number than we’ve ever been able to accomplish. And who gets the incentive here? You all of a sudden start to lineup a lot of people that receive the incentive. The city has a long term incentive to do this.”    

City Administrator Mike Palmer talks about what they currently offer as an incentive for new construction.

“The city does offer a three-year, 100-percent tax abatement, which is pretty good incentive in itself. But how do we get it over the line just a little bit further. I like to think looking at our numbers and the numbers looking ahead that our housing stock is rising, and just looking at how much is under construction right now, that’s a good indication.”     

Palmer notes the proposal would be reviewed by the city’s housing and finance committees before coming back to the Council for possible final approval.