Agreement approved for Rolling Prairie Estates housing development

A development agreement with Prairie Heritage Development, LLC, has been approved by the Prairie City City Council. With approval, the council authorized annual appropriation tax increment payments and pledged certain tax increment revenues to the payment of the agreement.

Prairie Heritage Development is the company behind the 21-lot housing development proposed for the southeast side of the city. Named Rolling Prairie Estates, the developers requested Tax Increment Finance (TIF) funds to be used toward infrastructure costs for the development. The unanimous vote, with councilwoman Diane Taylor abstaining due to family connection to the project, has the city pledging $750,000 in TIF funding toward the project.

“We hope to start sometime in the next 30 days, however, we are not sure we can get it all coordinated due to the delays, in terms of getting lots available for sale this year. It will be close,” developer Dan Wilson said.

Since first presenting the project to the council, the development has been split into two adjoining plats. The first plat, consisting of 12 lots, is estimated to be completed by October 2019. The second plat with the remaining lots will be completed in spring 2020.

“That is part of the new development agreement, splitting it into plats, so the first can be completed and we will have lots available for sale,” Wilson said. “One plat is not contingent on the other, simply, we need to get something ready.”

The city’s involvement in the project comes by way of TIF funding. The designation of TIF funding will direct taxes generated in the TIF district to a fund to pay off the remaining infrastructure bill before distributing the taxes to other districts including the school district and county. In time, once the debt is paid off, the school, city and county will begin receiving tax dollars that would not have been made possible without the creation of the TIF District and the houses being built, creating taxable property.

Wilson, along with landowner Jon Taylor, requested a 15-year TIF, five years longer than the standard 10-year TIF used for most agreements. To gain approval, the school board, county board of supervisors and DMACC, along with city council had to OK the terms. Following presentations to each entity, approval was granted to move the project forward following council’s final approval.

Rolling Prairie Estates is proposed to contain houses in the $250,000 range at 1,400 to 1,500 square feet with the price goal of the lots sitting at approximately $40,000 to $45,000. The average lot size is just more than a third of an acre and about three-quarters of them will have walkout basements.

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