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Posted on: July 5, 2019

Council Considers Options to Promote New Multi-Residential Housing

apartment building

The Sioux Center City Council is considering ways to promote new multi-family housing in the community.

At their July 1 meeting, council members discussed the merits of establishing a multi-residential Urban Revitalization Plan. This type of plan could create a designated area for multi-family housing. Within this area, if a developer builds multi-family housing with 3 or more units, the building or buildings would be eligible for tax incentives to help keep the units affordable.

“As the community continues to grow and we see the need to recruit additional workforce for businesses in the community, we wanted to have this conversation,” said City Manager Scott Wynja. “In order to attract more people and workforce, housing is an ongoing need for them to relocate in Sioux Center. We are limited in multi-family housing here.”

In northwest Iowa, a number of communities are providing incentives to help attract multi-family units in their communities. If Sioux Center’s council would choose to establish an Urban Revitalization plan for multi-family housing, the council would have flexibility in setting the incentives. The maximum they could approve would be a full 10-year tax abatement, or it could be anything less than that, explained Assistant City Manager Dennis Dokter.

“Multi-family housing is something we see a need for in our community. When we talk to developers, one of the hurdles is financial,” Wynja said, adding that they are interested in the possibility of an Urban Revitalization Plan in Sioux Center. “Developers have approached us and said, ‘We’ve done this in other communities.’”

The council indicated a general interest in considering this possibility further, and they planned to continue the discussion at a future date.

“We want to work toward getting people in the door here,” said Councilman Eric Moerman.

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