On Feb. 13, the City of Jefferson held a public hearing regarding the rezoning and for a KCG Development Representative to provide more details on the plan for a new housing development. The Wheldon will have approximately 50 apartment units financed through Iowa’s Housing Tax Credit Program to provide more affordable housing to residents in the area. Community members raised concerns about how many tax credits the development would get, rent income made, tax abatements, and, more specifically, why Jefferson? Most felt as if their questions went on deaf ears, as the representative, Anna Farwell, mentioned many times that she did not have a specific answer and would get back to members. KCG Development Vice President CJ Linter sent a document on Feb. 20 to the city officials answering those questions. The company says it will apply for $1.3 million in annual tax credits for ten years to assist with funding the development. The total came to $13 million in credits for the period and will sell for roughly 82 cents per dollar. The resulting proceeds of around $10.7 million will be used to fund the construction of the development, contributing to 75% of the total overall cost. If not for receiving Housing Tax Credits, the company would not be pursuing the construction of the development. Linter says KCG will also have a cash flow rent income of approximately $35,000 per year after paying the $314,000 annual expenses, which is said to include $42,000 for maintenance, repairs, and to build up the repair reserves funding account, plus $182,000 for the loan payments. The development has applied for the tax abatement and is estimated to save KCG from paying approximately $40,000 in yearly real estate taxes. The issue of the development getting built in a flood-plain area was addressed; Linter says the engineer and architect will coordinate a plan to bring in fill soil and re-grade the site, adding additional storm drainage and creating a detention pond to hold water on site. Linter says this area was chosen due to the availability of local amenities nearby and the site’s size to have a community consisting of the apartment complex, walkways, play areas, gazebos, grilling amenities, community garden, and more. The complete list of questions with the responses has been included with this story on our website. The Jefferson City Council has approved the first reading of changing the ordinance of zoning classification for the lot of this proposed property, with the second reading to be held during tonight’s (Tuesday) meeting. If approved, the council will vote on the proposed change for a final time during the following City Council meeting, which will officially sign the proposed change into law.
