The Fairmeadows North Housing Urban Renewal Area and Tax Increment Financing District is expanding to include the recently purchased Barton property. The more than 70 acres of land purchased by the Newton Housing Development Corporation is located north of the current Fairmeadows North Plat 8 housing development and has the potential to create 155 new housing lots.
Following a public hearing, Newton City Council approved a resolution on Tuesday adding the land to the Fairmeadows North Housing Urban Renewal Area and TIF District, which was initially approved for the 23 lots at Fairmeadows North Plat 8 in December. The funds acquired through the district will be used for the expansion of the housing subdivision for the seven acres currently under construction along with the recently acquired land from the Helen Barton Trust.
“This action also authorized the city to undertake a new urban renewal project and use tax increment financing to pay for the costs of acquiring the new property and constructing infrastructure improvements in connection with the development of a new residential housing subdivision,” city administrator Matt Muckler said.
To date, the city has approved about $900,000 in infrastructure costs for Fairmeadows North Plat 8 with a little more than half or $575,000 of that expected to be recovered through lot sales. The City of Newton has already completed the paving project for two new streets in the subdivision, Newton Waterworks has installed larger water mains and with the expansion of Plat 8, electric and gas utilities are easily accessible for upcoming work.
The remaining costs for Plat 8 will come from the creation of the TIF district. A similar funding format is expected for the 70-acre expansion when infrastructure work begins.
For the city, an urban renewal area is created to take on different economic development activities. Areas can be created for the purpose of addressing slum, blight, economic development, low to moderate income housing and non-low to moderate incoming housing. A TIF district designates taxes generated from the houses to pay off the remaining infrastructure bill before distributing them to other tax districts including the school district and county.
“(Urban renewal areas and TIF districts) do several things,” mayor Mike Hansen said. “The first thing it does is help finance the purchase of it. The second it will do is help finance the infrastructure improvements that are necessary in order to get all of the land ready for new home construction. Finally, because it is designated as an urban renewal area, it also adds to the fund that we are able to use for low, truly low and moderate income housing in our city.”
Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or email@example.com