Public comment was virtually unanimous against it
{Editor’s note: The name of the person who showed newcasts from Madison’s WKOW has been corrected.]
The Jefferson city council at its Feb. 13 regular meeting approved the first reading of an ordinance changing the zoning of property on W. Head St west of the Hwy 4 overpass from light industrial to RM3. The change in zoning will allow KCG Properties to construct 50 rental units with rents that will qualify KCG for the federal low-income housing tax credit program. The complex will be known as The Wheldon.
The approval followed a public hearing that lasted longer than 2-1/2 hours. After listening to comments from more than a dozen Jefferson residents and owners of rental properties, none of whom spoke in favor of the project, a motion to approve the zoning change was approved by a 4-1 vote. Council members Darren Jackson, Harry Ahrenholtz, Matt Wetrich and Pat Zmolek voted aye; council member Chad Sloan voted nay.
Margaret Saddoris, who lives in rural Jefferson but owns rental properties in Jefferson, had gathered enough signatures to require the ordinance be approved by at least 75 percent of the council. Four votes represent 80 percent.
The ordinance must be approved by the same super majority in two subsequent readings before it goes into effect. The council does not have an option to waive those readings.
Anna Folwell of KCG Development, which is based in Indianapolis, presented on behalf of the company. KCG was the eighth largest developer in the nation of affordable housing in 2023, Folwell said. The company has built 28 complexes in Texas, Ohio, Indiana, Wisconsin, Georgia, South Carolina, Maryland and Virginia.
The Wheldon will have one-, two-, and three-bedroom units with rents ranging from $530 for a one-bedroom apartment to $713 for a three-bedroom apartment for a renter who earns 40 percent of the area median gross income (AMI). Rents are higher for persons who earn up to 60 percent of the AMI. Households that earn more are not eligible to live in the complex.
Folwell said tenants will be primarily people who already live in the area and may include young people just starting a career, young families who face barriers to home ownership, or older people who are ready to move into rental housing. All tenants must pass a federal background check. Persons with felony charges will not be able to live there.
The Wheldon will have secure entries, a fitness center, a walking path or playground, a lighted ADA pathway, and a community room.
KCG plans to invest $14.5 million in the complex, with as much as possible going to local businesses and contractors. The only incentive requested from the city of Jefferson will be a 10-year property tax abatement. That has become standard for developers in Jefferson.
The company is committed to owning the complex for 30 years.
Folwell opened her presentation explaining a situation with a large KCG project in Madison, WI. That project, The Meadowlands, was labeled as a public nuisance by the Madison police within months of its opening. Calls for service were sometimes as high as 90-100 per day.
Folwell said the project had gotten behind schedule due to the Covid-19 pandemic, and that when it was ready for tenants, the company accepted many people who had been homeless. Meadowlands management had not developed the networks to assure those people would have the social services needed to transition out of homelessness; the conditions that led them to be homeless were not addressed.
Of the 28 projects KCG has built, The Meadowlands provided the “biggest learning lesson,” she said.
Police calls for service are now down to five a day for the 225-apartment complex. The company is working to have the nuisance status lifted.
Folwell hadn’t finished her presentation when local residents started questioning her. She was asked several times if Greene County Development Corporation recruited KCG and what incentives GCDC or the city had offered. She responded every time that there was no other incentive than the tax abatement and that she was not familiar with GCDC.
She said it was Jefferson’s designation as a Thriving Community that brought the city to KCG’s attention. “We know how much work that took and I was excited to come here. It’s a big reason we came here…. That’s not a light lift,” she said.
Linda Eighmy, who has been involved in the real estate business in Jefferson for 30 years and is a member of the Jefferson planning and zoning committee, said the site is swampy and too close to the railroad tracks. “It’s not in line with local standards and real estate practices,” she said.
She also referred to the city’s comprehensive plan, parts of which are intended to prevent overcrowding and an undue concentration of population. She said local schools, healthcare resources and law enforcement can’t handle the influx of residents the project could bring.
“That property was zoned light industrial for a reason. KCG picked the wrong property,” Eighmy said.
Folwell said KCG knows of the drainage situation on the property and plans to install a drainage system.
Resident Ryan Baugh lives near the location of The Wheldon. He said he wanted to present a case that “KCG is a terrible partner and will destroy our community as we know it. “
He then showed three news clips from ABC affiliate WKOW of Madison. The clips concerned The Meadowlands’ nuisance designation. The information wasn’t new, as Folwell had already explained the situation.
After the videos were shown, Folwell responded that one of them was very incorrect and that the KCG legal team is dealing with it.
“I’m afraid that not much good will come of this,” Jane Finch said. She asked the council to consider the desires of those speaking at the public hearing not to have The Wheldon in the community.
Council member Darren Jackson read from an email dated Jan. 3, 2024, from the office of the Madison city attorney. “I’m writing to acknowledge the strides that KCG has made in fostering positive change within the Meadowlands community,” the email stated. “Over the past year, KCG has stayed the course and has worked cooperatively with the city of Madison to address challenges resulting in improved conditions for residents and the surrounding community… I commend KCG for willingness to stay at the table and work with the city of Madison to effectuate positive change within the Meadowlands community. The city of Madison looks forward to continuing progress and success in the future.”
City administrator Scott Peterson reported receiving letters of support for KCG and The Wheldon from Wild Rose Casino, Greene County Community Schools, and Jefferson Telecom. Those letters were not read at the public hearing.
The council will hold the second and third readings of the amended zoning ordinance at the Feb. 27 and March 12 meetings.
KCG hopes to start construction next October with the first units completed in October 2025. The project will be finished in January 2026. Leasing will be completed in February 2026.
