The Jefferson city council at its July 11 meeting cleared the way for a new housing development in northwest Jefferson east of Head Park.
The council first rescinded approval for a planned unit development (PUD) given several years to JCorp, which planned to build rental properties there. That project fell through when JCorp was unable to get financing.
This time, Andy Rowland of Rowland Real Estate is ready to move forward with a plan to build four three-plex townhouses on the block bounded by W. Head St on the south and N. Pinet St on the east. The buildings will be similar to those he built on N. Olive St two years ago.
Rowland also plans to build eight houses on the block bounded by W. Mahlon St on the south and Pinet on the east.
The 12 2-bedroom units would rent for about $900 monthly, Rowland said. The 3-bedroom houses will be about 1,200 sq. ft. and would be similar to a house he built recently in the 600 block of S. Locust St.
The council held a public hearing on Rowland’s proposed PUD prior to approving it.
Tim Williams owns nearby rental property. He asked general questions about Rowland’s plans.
Chad Olson also spoke. He lives in the northwest quarter of the block on which Rowland will build the rental townhouses. “We really need some neighbors,” he said, but he said he’s concerned about what the property will look like 40 years from now. He said the plans are “too extensive to cram into one block,” and that he’d prefer having only single-family homes there.
Council members Harry Ahrenholtz, Matt Wetrich, Pat Zmolek and Dave Sloan voted in favor of approving the PUD for Rowland Real Estate. Council member Darren Jackson was absent.
The council also held a public hearing on rezoning properties near the Union Pacific railroad tracks near N. Cedar St from Residential to Light Industrial. No comments were heard and the council approved the first reading and waived the second and third readings of the necessary ordinance.
The council next sold two of the parcels in the re-zoned area to Tim Buenz for $500. Buenz, doing business as Perry Street Storage, plans to use the property for fenced outdoor storage for cars, boats, trailers and RV/campers, and to add mini storage units in the future.
The council approved purchasing a dilapidated property at 600 W. Lincoln Way from Tammy Tolsdorf for $10,000. The city will also pay back taxes of $2,332 and forgive city utility bills totaling $947.91.
Building/zoning officer Chad Stevens told the council the property has been a “nuisance property” for several years. Region XII Council of Governments may provide funding to assist in renovating the property and then sell it, or the city may demolish it and sell the vacant lot. Funding for the purchase is from the city’s Neighborhood Stabilization Program.
Council member Sloan voted against the motion to purchase the property. Ahrenholtz, Wetrich and Zmolek voted in favor.
The council approved a subordination agreement with Home State Bank, stepping back to a second mortgage on the property at 100 E. State St. The property is owned by Why Not Us. The women’s investment group assumed $150,000 in debt as 10-year forgivable loans when it purchased the building from the city in 2021.
Why Not Us is now renovating the upper story of the building as apartments. The city received $453,071 as a Community Development Block Grant on behalf of Why Not Us for the project. Total cost is $503,071.
The Home State Bank mortgage of up to $50,000 will serve as a bridge loan during the length of the renovation project. Per state and federal banking regulations, HSB needs to hold the first mortgage. The city will hold a second mortgage during construction, and then regain the first mortgage when the bank loan is satisfied or when the project is substantially completed.
The motion to approve the subordination agreement passed unanimously.
The council approved the contract and bonds with Jensen Builders for the box hangar project at the municipal airport. The base bid amount is $1,190,028. A pre-construction meeting will be held soon.
The council also approved the purchase of a camera for the city impound lot. The camera and a three-year license is being purchased from ByteSpeed at a cost of $2,008. Tech Zone will install the camera for $1,675.33.
During his report to the council, city administrator Scott Peterson said city staff is working on an application for Jefferson to be designated as a “Thriving Community.” The application highlights housing and amenities now available in Jefferson as well as what is needed for future growth.
“Thriving Community” designation can serve as an incentive for developers to do projects in a community, as extra points are awarded on various grant applications to developers going to a designated community.
