A housing project that was put on hold for two years in the city of Jefferson looks to pick up steam, following the conclusion of litigation.

Jefferson City Administrator Scott Peterson says KCG Companies has updated its building permit for a 50 rental unit project at 403 West Head Street, near Ace Hardware. The developer approached the city in 2023 after they had received the Thriving Community designation from the Iowa Economic Development Authority, which is a program that allows for rural communities to take advantage of additional scoring for housing tax credits.

In early 2024, the Jefferson City Council approved the rezoning of the property from light industrial to multi-family residential. Soon after, surrounding landowners filed a petition against the city claiming the city had failed to act in accordance with its Comprehensive Plan and not properly following rezoning protocols. 

Later that year, a district court judge dismissed the lawsuit saying the landowners couldn’t provide substantial evidence that the passing of the rezoning would cause them injury. In 2025, an appeal went to the appellate court, which upheld that same decision and then earlier this year, another appeal to the Iowa Supreme Court resulted in the high court choosing not to hear the case.

Peterson tells Raccoon Valley Radio the status of the federal tax credits that KCG was awarded two years ago, of $1,281,139 from the Iowa Finance Authority.

“Tax credits are still in place and looking forward to them proceeding with the project. And they have been able to get some extensions that were needed in order to accommodate their time schedule. But everything is still able to come together. So looking forward to the project.”  

Peterson is excited to see this project get underway later this year.