Creation of an upscale housing area near a golf course and the construction of a warehouse for a garage door company both received a boost from the Fort Dodge City Council Monday.

The council declared its intent to support the construction of single family houses and twin townhomes in an area surrounded by the Fort Dodge Country Club golf course.

It also approved a development agreement with Overhead Door Co. of Webster County for a new warehouse.

Councilman Jeff Halter opposed both actions, saying they were not proper uses of tax increment financing.

He said there is no need for the city government to support the construction of houses that will cost more than $200,000.

Halter also said that the warehouse project creates no new jobs and benefits just one company.

Country club housing

Leaders of the country club have proposed creating an area nestled within the golf course with lots for 14 single family homes and five twin townhomes.

The planned housing area consists of 8 acres north of Country Club Drive at the end of gravel road.

The lots for single family homes will range in size from .33 acres to .53 acres. Those lots will be sold individually, but the five lots for the twin townhomes will be sold to one developer who would build all of them.

Construction could begin next spring.

On Monday, the council voted to move forward with negotiating a development agreement in which the city would use tax increment financing to reimburse the country club for its costs to extend a new street, water main and sewers to serve the housing area.

According to initial estimates, the country club would be paid $827,000 over 11 years.

When asked by Councilman Neven Conrad if the project would happen without help from the city, Kole Petersen, the president of the country club’s board, replied ”absolutely not.”

Halter told Petersen and other representative of the country club that he respected their willingness to invest in the community.

”I’m not interested in supporting you through TIF,” he added. ”The housing we need is well below the price range you’re going to offer.”

He described the proposed housing development as ”just another way to create urban sprawl.”

Tax increment financing occurs when increased property tax revenue in a designated area is set aside to be reinvested in that area. That is the strategy the city would use in this case.

When tax increment financing is used to support the creation of housing, funding is generated to assist with housing needs for low- and moderate-income residents. Councilman Kim Alstott said that money is used by the Heart of Iowa Regional Housing Trust to help qualifying people stay in their own homes. The money, he said, is used for things like replacing roofs and making houses handicapped-accessible.

Halter maintained that tax increment financing is for clearing away slum and blight.

”This is to build wealthy homes at the country club,” he said.

Troy Anderson, president of Coldwell Banker Associated Realtors in Fort Dodge, told the council that the city has housing needs in every prices range.

He added that when people build homes at the country club site, their move will make other houses available in the community.

Council members Dave Flattery, Andy Fritz, Terry Moehnke, Alstott and Conrad voted to purse the development agreement.

Halter voted no.

Councilwoman Lydia Schuur abstained, citing a potential conflict of interest.

The city staff and representatives of the country club will now work out the agreement, which will be presented to the council for action.

Warehouse

The council approved a development agreement with Overhead Door Company of Webster County in which the city government will pay the company up to $26,000 to reimburse it for relocating a water line so that a warehouse can be built at the company’s site at Central Avenue and 21st Street.

”It only benefits them,” Halter said.

Alstott, Conrad, Flattery, Fritz, Moehnke and Schuur voted to approve the agreement. Halter voted no.