Provided by Greene County Development Corporation, Oct. 24, 2024
In 2019, a Greene County Development Corporation (GCDC) survey of our largest employers showed that 30 percent of their employees were commuting in and out of the county for work. A majority of those employees also said they wish they could live in Greene County, but they couldn’t find adequate, affordable housing. At the same time, those largest employers were all reporting that, despite their best recruiting efforts, they were not able to find enough employees to replace retirees and grow their workforce. One of our companies began locating new jobs not only beyond Greene County but to another region of the U.S. Others said they’d likely have to follow that same example if more workers cannot be recruited here soon.
So GCDC launched a major initiative to recruit not only new workers, but their families, too, in order to grow the workforce and attempt to stop a century of rural population decline. The economic development group has received a $95,703 USDA grant to pay for the first year of operating that initiative. And we now are raising $300,000 in local funding to pay for a second, third and fourth year. The key to this being successful goes back to our original problem – we do not have adequate, affordable housing for a growing workforce.
But when Kading Properties, a 47-year-old housing developer based in Urbandale, Iowa, learned about the Greene County challenge and our determination to meet it, they became interested in helping. The company is now proposing an investment of up to $20 million in new housing in Jefferson. Here are the key elements of the proposal:
1.Why do we need more housing when some say we do not?
Support of Major Employers for their growing need for employees
►A 10/1/2023 personnel survey of just ten of our largest employers revealed they have openings for 116 employees today and estimate 361 over the next five years.
●GCMC, New Way Manufacturing, Wild Rose Casino, and others, cite the lack of housing as a primary reason for the loss of qualified applicants to fill existing positions. New Way has already relocated 200 jobs to other locations outside Greene County.
►Encourage and provide new and alternative housing options.
●Today we have a limited number of rental choices and opportunities available. The number of available rentals is not known, however employers report that finding a place to rent is difficult.
●According to the popular Multiple Listing Exchange, Zillow, Jefferson has 17 houses for sale.
●In 2016 our own Vision 2020 task force, including approximately 40 participants under the age of 45, identified alternative housing options as their 2nd most important need.
●A 2023 Housing Survey conducted by Region XII assessed our present housing situation as follows:
•59 percent of our stock was rated “fixer upper” or worse.
•Almost 80 percent of our current housing stock was built before 1979 (over 40 years ago) and almost 30 percent before 1939.
2. Why would we locate a new housing development in an open space east of Highway 4 and north of Central Avenue, located in a swamp?
►This location of land is large enough, 27 acres, to accommodate a larger developer who could make a bigger impact on our housing needs.
►The northwest corner of the property is low and wet and will provide an excellent retainage pond to allow for appropriate drainage throughout the housing development and help other businesses in the area.
►The land is owned by Greene County Development Corporation and has been accumulated over a long period of time, beginning in 1991, for the long-range vision and purpose of development.
►This land has lain vacant for 3 decades. This housing opportunity was our first financially feasible request.
►Gifting of land for housing development has been prominent over the past few years by other rural communities as an incentive for development.
●A listing of such communities received from Rick Hunsaker, executive director, Region XII Council of Governments, Inc. and COG Housing, Inc., includes such communities as: Stuart, Guthrie Center, Audubon, Carroll, Ogden, Wilton, Sidney, New Hampton, Jefferson, and towns all over the state.
►Hunsaker states that the expectation for interested developers in rural Iowa is greatly reduced without a free land incentive because it costs more to move construction crews to a remote location.
►Easier for GCDC to gift land than ask for a gift from our city where taxpayer dollars would be impacted.
►Access can be gained by constructing a short street going south from Gallup Road to the proposed site of this housing development at an estimated cost of $1.3 million. The cost of road construction from that point to the southern end of the property would be paid for by the developer.
●Development of this street would also assist AAI/Spalding in the expansion of their business by adding loading docks for improved semi-access.
●Development of this street would also unlock access to four new commercial lots presently owned by GCDC. Because of the recent sale of development lots on the west side of Highway 4, these added lots are badly needed for future business development.
3. Why would our city consider offering a 10-year tax abatement at the expense of the taxpayer?
►First of all it is not an expense to the taxpayer.
●No cash outlay of city funds is needed for tax abatement.
●Approving such an abatement by the city creates the opportunity for the city to receive significant tax revenues once the 10-year abatement period expires.
►Approved 4 years ago and used for multiple other projects in Jefferson.
●As an incentive to any developer, and in recognizing the need for multi-family housing development, in July of 2019 the city council approved the use of tax abatement as an economic development tool.
●Tax abatement is used in many of our surrounding cities such as Boone, Perry, Ogden, Carroll, etc. Without this tool, Jefferson would not be competitive.
►Unlocks other potential income for the city.
●During this first 10-year abatement period, the city has the opportunity to collect revenue from other sources such as water and sewer fees, garbage collection, sales tax, retail and service spending by the residents.
●By approving this 10-year tax abatement, and by investing an estimated $1.3 million in the street and street improvements, the city gains a $20 million investment in housing from the developer, enables expansion of AAI/Spalding, and opens up new commercial lots for future businesses.
4. I have heard there are problems with past Kading developments. Why would we want this developer in Jefferson?
►Kading has been in business for 47 years and has successfully developed workforce housing in 26 Iowa communities.
►As a property management company, they have staying power-intentionally building for the long-term stay. For example, Kading developments are constructed using higher architectural standards that have longevity (for example: 50-year architectural-grade shingles, LP Smartside Cladding Siding) because their goal is to actively manage and maintain these for the long haul.
►Cities like Storm Lake, Osceola, and Knoxville, have all verified the Kading developments in their communities have helped fill the workforce housing void and that these properties are well-managed. Osceola has worked with Kading on multiple projects since the late ‘90s. Kading has a proven track record for building and managing workforce housing projects that positively impact the growth of the local economy.
►Kading developments are regulated by the City Codes for each community. The streets, driveways, sidewalks, and overall density are governed by the City regulations for each community. Kading works to implement those standards. Projects vary because City Codes vary from community to community.
►The best example of a community’s satisfaction with Kading is asking them back to construct another development. Below is a list of communities where Kading has been asked to build additional units. The number following the city name is the number of projects Kading has built in that community: Madrid 6; Newton 6; Marshalltown 4; Grinnell 3; Perry 2; Knoxville 2; Storm Lake 2; Des Moines 7; Osceola 8; Pleasant Hill 5; Winterset 3; Boone 2; Indianola 2
►Kading Properties has the financial capacity to build a development that is large enough to fill our workforce housing void, an investment of up to $20 million.
5. I have been told this is an expansion of Low and Moderate Income (LMI) housing, is this the type of new housing that Jefferson needs?
►As described by Hunsaker of Region XII, “Affordable” housing is generally defined as rents and utilities when combined, that do not exceed 30 percent of the applicant’s gross income.
►Residents whose rent levels exceed 30 percent or more of their family’s gross income, do not qualify for Kading development leases in this proposed development.
►Kading serves residents whose household income is a minimum of $40K.
►Their typical resident demographic includes families, single adults, and retirees. Working residents fulfill jobs in: healthcare, manufacturing and food production, warehousing and logistics, public service, education, and retail
6. Is it true that crime levels in the Kading developments are excessive and have increased crime levels in the cities where their developments are located?
►Kading has a history of strong leasing guidelines and actively manages their properties. They have a reputation for strict adherence to their policies.
►The public can view their leasing policies on their website which clearly outline the company’s zero-tolerance for crime.
►Those policies are meant to maintain a clean, safe community. They also work to build strong partnership relationships with local law enforcement.
►The City of Jefferson and GCDC have contacted several of the communities with newer Kading developments (including Storm Lake, Madrid, and Marshalltown). All the communities indicate they have had no unusual problems with the development and that Kading has been a positive addition to their community.
►The significant list of communities that have multiple Kading developments is also a testament to the security and safety of their housing projects.
7. How many units are proposed for the new project? Many are saying we do not need 200 new units.
►The current plan is to construct 80 units in phase one and then establish the market demand before deciding the number of additional units needed. With over 300 new jobs coming to our larger employers, 80 units may only be part of what is needed to support our employers in the next few years.
~A report from the Greene County Development Corporation
