Pictured: An example of a project completed by Overland Property Group similar to what is proposed in Carroll.
The Carroll City Council approved a resolution last night (Monday), putting their support behind the initial planning stages of a new low-income tax credit housing development on the east side of town. City Manager, Mike Pogge-Weaver, says officials were approached by a Kansas-based management firm, Overland Property Group, earlier this year seeking council support for the company’s application to the Iowa Finance Authority (IFA). Overland Property Development Associate, Eric Wyancko, outlines the scope of the project for the council.
The neighborhood would be built on the east end of 3rd Street, behind the MidAmerican Energy building and Auen Distributing on Grant Road. Overland Property Group estimates a total investment of more than $11 million for the 35-unit complex and is requesting the city extend street, sewer, and other utilities to the development at an estimated cost of $689,000. Region XII, which currently owns the property, is willing to contribute up to $150,000 towards this expense. The city tentatively plans to recoup the remainder by designating the area a Tax Increment Financing (TIF) District. A similar project failed to gain traction in the community nearly two years ago, but Pogge-Weaver says this company appears to have an excellent track record in other Iowa communities, including Pella, Storm Lake, and Oskaloosa.
Carroll Police Chief, Brad Burke, says he received similar reports when he spoke with his counterparts in those communities. According to Wyancko, the project is under a time constraint, as applications are due to the IFA no later than May 18, and they needed initial approval at Monday’s meeting. Ward 3 Councilman, Kyle Bauer, says he and other community members are concerned that the apartments could be built and then sold off quickly. Wyancko says the company’s history shows that is not how they operate.
Rent for the units will range from as low as $640 per month to as high as $1,050. Tenant income must fall between 40 and 60 percent of Carroll County’s household median income to be eligible to rent, excluding a few unrestricted units on the property. Several council members were hesitant to support the application, but Pogge-Weaver says there are still many steps to take before the project has full approval.
The council voted 5-1, with At-Large Councilwoman JJ Schreck as the sole nay vote, to commit to extending 3rd Street and utilities to the property, assuming the IFA application is approved. The developer expects to hear back from the IFA in September or October. Full video of Monday’s meeting can be found included below..
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