The Clear Lake City Council conducted a public hearing Monday night involving anticipated future development for city-owned property on South 15th Street.
In May, city leaders enthusiastically approved of the idea to accept proposals for the sale and redevelopment of a city-owned property at 100 S. 15th St. The property includes three 50-foot lots and one 40-foot lot, between Main Avenue and 2nd Avenue South; each lot is 120-feet deep. The metal cold-storage building, which City Administrator Scott Flory called “an eyesore for a great many years,” is being sold as-is.
Development of market-rate apartments is favored for the site.
According to Flory, two offers for the property have been submitted. The offers will be reviewed in early June and the Council may consider awarding the property in early July.
Flory noted two additional 50 x 120-foot lots to the south of the advertised property are not part of this sale, but may potentially be available. Those lots are owned by Cerro Gordo County, which local officials say may be open to their sale. Additionally, the county owns two buildings on the west side of South 15th Street which may also be available for purchase in the future.
Chapter 404 of the Code of Iowa enables legislation that grants the City authority to adopt the plan/area. Under the terms of the plan, qualifying residential development would be eligible to receive a partial abatement from property taxes.
On July 16, the Council is expected to formally adopt the proposed plan for the revitalization area.
In other business Monday, the Council set July 2 as the date for a public hearing concerning the issuance of revenue bonds for One Vision’s TimberCrest Apartments LLC project.
The City is authorized and empowered by provisions of Chapter 419 of the Code of Iowa to issue revenue bonds for the purpose of financing a project and facilities on behalf of an organization described as a 501(c)(3). Flory stressed that once the City issues the bonds, it steps out of the process and the payments made by the borrower under the local agreement are made directly to the purchasers. The City will have no ongoing involvement in the process. Under Iowa law, conduit bonds are not a debt to the City and no City funds or tax dollars are used to pay for the conduit bonds.
The tax exempt bonds will help One Vision with the remodeling, construction, site work, utility work and other work in constructing a 48-unit senior-focused independent living apartment complex as part of their repurposing of their campus.