March 29, 2024

NHDC awarded $1 million economic development grant

A $1 million economic development grant from the city will be used toward the purchase of the Barton extension at Fairmeadows North housing development. A resolution was approved by city council on Monday for a Real Estate Development Agreement with the Newton Housing Development Corporation for the acquisition of the 70.7 acres of land.

The land, located directly to the north of Fairmeadows North on North 11th Ave. E. to East 19th Street North, was first secured by NHDC in December. The agreement at that time would allow NHDC to purchase the land and approach the city to help build infrastructure in phases utilizing economic development grants such as the most recent grant approved.

An interest of NHDC’s for years, a concept master plan was created several years ago for the Barton property to show the possibility of adding dozens of lots with green spaces and connecting trails. The acquisition came at a prime time for Newton with the city doubling the number of building permits issued for single-family homes in 2017 and distributing 32 Newton Single Family Home Construction Incentives since the program started.

“Recent increases in new home construction and sales have underscored that the current inventory of residential lots, both infill lots in existing subdivisions and newly developed subdivision lots, will likely be completely built out by the end of 2020,” city administrator Matt Muckler said. “This includes the construction and sale of both single family and duplex-style homes.”

In working with the NHDC, Muckler said the city wants to maintain uninterrupted growth in the community’s housing stock and have buildable land in reserve for future residential development. The 70.7 acres at the Barton extension will help with that by adding a substantial amount of lots in a prime location next to Agnes Patterson Park and the new Berg Middle School.

“The concept plan shows what the area could look in the future and how it continues to move forward the goal to provide housing, as called out in the City of Newton’s Comprehensive plan,” NHDC executive director Bruce Showalter said.

The Real Estate Development Agreement has the land being divided into approximately 155 residential lots. The city will not waive any fees or local and state development standards for the lots.

To repay the funds, NHDC will actively market the land until all of the lots are sold. NHDC will pay the city $20,000 of each lot sale until a total of $1.4 million is paid in full.

“I think it is important to understand that this grant is an economic development grant but there is also in place a repayment agreement on this redevelopment grant, with interest,” mayor Mike Hansen said.

In other business:

• The council approved the purchase of 12 new golf carts for Westwood Golf Course from Harris Golf Carts of Dubuque for $50,220.

• A new mower with snow removal equipment was also approved for purchase from Turfwerks in Johnston for $38,028 to replace the current zero-turn mower that is at the end of its life expectancy.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com