The possibility of providing tax increment financing to assist the construction of new duplexes in Fort Dodge will be voted on by the City Council Monday.
The council meeting will begin at 6 p.m. Monday in the Municipal Building, 819 First Ave. S.
The duplex development, called Windstone Circle, will be in an area bordered by Second Avenue South, A Street and U.S. Highway 169. The developer, Mike McCarville, of Fort Dodge, plans to build three duplexes there this summer and another nine later. The entire project is estimated to cost $3,677,550.
To assist that effort, the plan calls for the city government to reimburse the developer for the costs of installing a sanitary sewer, estimated to cost $147,255 including interest costs, to serve the duplexes.
The council on Monday is scheduled to start that process by declaring the site of the duplexes to be a housing urban renewal area.
Also, the elected officials will consider the first reading of a measure that would allow tax increment financing to be used to pay for the sewer.
Tax increment financing occurs when increased property tax revenue from a designated area is set aside to pay for improvements in that area. But when tax increment financing is used to support a housing project, part of the money must be spent on housing for low to moderate income people anywhere in the city.
In the case of the duplexes, $58,902 would be generated for low to moderate income housing projects.
The tax increment financing measure must be approved by the council three times in order to go into effect.
A majority of councilmembers have already said they support the proposal. The city's Plan and Zoning Commission has recommended approval of the project.
In other business Monday, the council will consider giving final approval to a measure allowing tax increment financing to be used to pay for relocating the northernmost part of the Fort Dodge Nature Trail.