Council throws support behind multi-property development

May 9—OTTUMWA — With a goal of reaching 500 housing units by 2030, the City of Ottumwa is one step closer to putting another dent into that figure.

The city council Tuesday approved both a resolution of support and May 21 as the date for a public hearing regarding a potential 30-lot development by Kading Properties.

The properties would occur on infill lots as the city addresses its "missing middle," which is a concept of developing affordable housing for middle-class residents. Kading specializes in single-family units, as well as townhomes and triplexes, and has a 47-year history centered on central Iowa.

"Our goal is really to fill that missing gap," Kading CEO Karie Kading Ramsey told the council. "We're looking for your employees who are working 50 hours a week. That's who's going to live with us.

"We'll have your teachers, there might be some police officers that live with us. Just people that are hard to hold in your community that you don't have housing for right now."

Kading Properties will be submitting an application for workforce housing tax credits through the Iowa Economic Development Authority. Thirty lots have already been identified for development, many of which the city took ownership of as a result of forfeitures, and they're already set up for utilities.

"This is a project I'm really excited about," city director of community development Zach Simonson said. "It's been kind of a culmination of a lot of effort that we've put into our derelict property program and vacant lot program."

Kading Properties builds developments and then manages those developments. Kading said the company has "rules" and it abides by strict standards.

"Two things we look for are we want to make sure there is an inspection code. We appreciate rental codes," she said. "For those that want to fight against the rental code, I'm not their hero. We do ruffle some feathers at times, but that's because we have a tight ship to run. We have our name on the properties and we want to make sure they're maintained to the highest level of standard."

There are per-unit caps for the variety of units. For instance, a single-family unit must be built for $298,021 or less, while a multifamily home must be built for no more than $241,643.

Rental fees would be established as market-rate; a two-bedroom unit would for $925, and a three-bedroom unit would be $1,150.

The city would sell the lots to Kading Properties for $125 per lot.

"There are products that aren't available on the market, and you're able to get twice as much rent as you would get from a single-family home and give the developer more flexibility to create the product," Simonson said. "But it also means our valuation can go up as well, and we want to get these lots back on the tax rolls."

None of the properties will have basements, as they will be built on slabs. However, Kaeding is hopeful that "we are going to build seven to 10 around the same time because we have that capacity."

Council member Bill Hoffman Jr. wondered if the company would use local contractors for construction.

"It's hard to tell right now. There are a lot of different scenarios and we always go out to bid, so they'll have the opportunity to bid," Kading said. "We would love to use local folks if we can because then we don't have to have them to stay here. It always seems to be more affordable if you can find the right people.

"We actually use contractors all over the state of Iowa. We have 800 vendors and contractors that we use anywhere from Storm Lake to Corydon. We have a large footprint as we're in 26 communities in 13 counties."

The company does have a mowing contract, and will have one for snow removal at multi-residential properties. However, Kading said snow removal at a single-family unit would fall upon the residents.

In other business:

— Mayor Rick Johnson surprised city clerk Christina Reinhard in recognition of Professional Municipal Clerks Week. He read a proclamation and presented it to Reinhard.

"I did not know that was going to happen, so you guys were good," Reinhard chuckled. "It's my honor to serve as your city clerk and I'm always here for anybody that needs to go to my office for anything. So thank you."

Johnson commended Reinhard for the tasks she performs.

"I don't know everything she does, but I can tell you she's extremely busy and she's responsible for all of our agendas and minutes, gets everything sent out and posted to the public," he said. "She is involved in all kinds of things and we would be hard-pressed if we didn't have as good of a city clerk as we have."

Reinhard said she and other area clerks communicate, and boiled down her job to a simple response.

"You don't know what a city clerk does until it doesn't get done," she said. "That's pretty accurate."

— Chad Drury can be reached at cdrury@ottumwacourier.com, and on Twitter @ChadDrury