SIOUX CENTER—The Sioux Center City Council approved applications for support for the Iowa Workforce Housing Tax Credit Program at its June 22 meeting.
Sioux Center Director of Economic Development Dennis Dokter explained that the Iowa Workforce Housing Tax Credit program is designed to promote housing development in Iowa.
“Real estate developers can use this incentive program to produce and increase housing in our community,” he said.
Dokter said Axis Builders of Orange City is exploring the idea of building multi-family units in Sioux Center, which it has already done in Orange City.
The company would like to apply for the tax credit program to support possible construction north of Country View Development in the northeast corner of town.
Dokter said Sioux County and Central Sioux is considered an eligible area for this program, which means developers are eligible to apply to the state for sales and leasing tax credits. ‘investment. To be eligible, the developer must provide with the application a resolution of local support for the project that indicates community support and willingness to identify a local match for housing units built under this program.
The local counterpart on multi-family projects comes in the form of a tax allowance.
“We’ve had varying levels of success with local projects applying for this,” Dokter said. “There seemed to be funding for a while and then there was a period of time without a lot of funding. The last two years with COVID, there seems to be more dollars available now.
Dokter said two developers — LED LLC, which built North Forty Apartments, and Schelling Construction, which builds apartments and townhouses at Ridge Creek Development — are interested in building more such entities in Sioux Center.
This is the third letter of support for the project that the city has offered this year.
“The developer is writing the grant but they’re asking me for information about what’s going on in the community,” Dokter said. “Offering these letters of support is part of the process of helping people meet a need in the community. Not all of these projects come to fruition, but I think it’s always important to help those who ask for it.
During the meeting of June 22, the municipal council also:
- Approved a 5% increase in wages and salaries for fiscal year 2022-23. City Manager Scott Wynja said salary considerations were based on cost of living, market comparisons, employee performance reviews and feedback from department heads.
- Approval of internal funding of $300,000 for a project at Heritage Village. The city’s chief financial officer, Darryl Ten Pas, told council that there is a completed project that can use TIF revenue for funding. Since TIF revenues are not available in this fiscal year to pay for the project, this project will be financed with cash from the Department of Electricity fund instead of a bond. In order for the debt to be paid with TIF revenue, the debt must be certified with the Sioux County Auditor’s Office. The loan will have an interest rate of 1% and will be paid with the income from the TIF as it becomes available. With the current TIF payment schedule, it is estimated that the loans should be repaid by the end of fiscal year 2031.
- Endorsed Jeremy Oolman for permanent employment status with an appropriate commensurate salary increase. Oolman was hired into the city’s building maintenance department and completed his six-month probationary period.