A new rental housing project in Jefferson got over an initial hurdle toward it becoming a reality.
KCG Companies has 28 developments in 13 states over the past nine years. KCG Representative Anna Folwell presented at the city council meeting this past Tuesday that they are planning to build up 50 rental units, consisting of nine one-bedrooms, 22 two-bedrooms and 19 three-bedroom apartments within two buildings that are two- to three-stories high. The proposed location is privately owned at 403 West Head Street, south of Ace Hardware.
Folwell said at the meeting that the Jefferson project, called The Wheldon, would be their first project in Iowa. She noted that KCG had been looking at Iowa for the past two years, but until recently with the Iowa Finance Authority (IFA), did it make sense for them to further investigate possibilities with tax credit programs being available for more rural communities.
Jefferson City Administrator Scott Peterson explains that KCG actually approached the city because of a new designation.
“They (KCG) talk about why those chose Jefferson, because Jefferson had been determined to be a Thriving Community (through IFA). We achieve that designation last year and that does help them then in their ability to get these tax credits.”
Folwell said under the Area Median Income levels that they follow from the US Department of Housing and Urban Development, rents would be lower and not at market rate. She added that they are seeking to serve the current population in the community that are looking for rental units, based on their studies that they did.
Peterson describes the city’s involvement with this project as having to go through three required readings to change a zoning ordinance from light industrial to multi-family residential, and that the project would be eligible, but hasn’t been applied for or approved, for a ten year tax abatement that is in the city code. During the public hearing, about 15 people asked questions, voiced concerns and spoke against the project. Peterson comments on how he thought the 2.5 hour public hearing for the rezoning proposal went.
“Yeah, I feel really good about the public hearing. It was lengthy and everybody had a chance to express themselves, and everybody did a fantastic job of maintaining civility. Decorum was always maintained, that is an expectation, but it’s also very much appreciated that everything came off that way.”
Peterson says a petition was filed from surrounding neighbors of the project that pushed the vote of the council to pass the ordinance change to a supermajority, of four out of five voting in favor of it. The Council did approve the first reading of the zoning ordinance change by a 4-1 vote, with Council member Chad Sloan voting no. Peterson adds the expectation is at the next two subsequent council meetings the second and third required readings will be considered. Click the link below to access the details of the project that were presented by KCG Companies.