Pella Chronicle

Local News

August 28, 2013

Council amends Pella Business Corridor plan

During last week’s Pella City Council meeting, a resolution was approved and ordinance were adopted in regards to Amendment No. 5 to the Pella Business Corridor Urban Renewal Plan.

On December 4, 2012, Council approved a conditional resolution in support for the Overland Property Group’s proposed Section 42 Housing Development referred to as the Mills Farm Housing Development. This housing project will consist of a 32-unit affordable housing complex in the Viewpoint subdivision in Pella, adjacent to the Sports Page Grill and across from the Ulrich dealership. The estimated cost of the development is $5.2 million.

Since Council’s approval of the conditional resolution of support last December, the Iowa Finance Authority has awarded housing tax credits for the project, and the developer intends to proceed with constructing the project. Therefore, in order to comply with the previously approved conditional resolution of support, the City needed to create a new urban renewal area for the project. The reason a new urban renewal area is needed is because the proposed property tax rebates for the project are projected to occur over a fifteen year period of time which exceeds the remaining years left in the Pella Business Corridor Urban Renewal Plan. As a result, the Pella Business Corridor Urban Renewal Plan needed to be amended to remove the proposed housing development from its boundaries. Likewise, City Council also needed to create a new urban renewal area for the proposed housing development.

The resolution that was approved adopts the proposed Amendment No. 5 to the Pella Business Corridor Urban Renewal Plan. This Plan, also referred to as “the Pella Business Corridor TIF District, was adopted in February 2003 and may be amended from time to time to respond to development opportunities. Amendment No. 5 is being proposed to remove Parcel B and Parcel C of Lot 2 of the View Pointe Subdivision from its boundaries, which is the Mills Farm Housing Development. In addition, Amendment No. 5 also identifies the following infrastructure projects in the plan which are intended to comply with new state requirements for TIF financing.

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