The Carroll City Council voted 4-2 at its meeting earlier this week to move forward with the beginning stages of a new development agreement for the Golfview Subdivision. Golfview is an approximately five-acre section of unused land found on the Carroll Municipal Golf Course’s western edge. The land had previously been considered for development by city leaders, but that plan did not pan out, as a larger expansion to the west did not proceed due to land-acquisition issues and underlying infrastructure challenges. City Manager Aaron Kooiker says the city has been working with Kerkhoff Kraftsmen, Inc., over the last few months to finalize a smaller development of higher-end homes.
In short, the development agreement would have the city install approximately $1.25 million in public improvements, including water and sewer mains, curbs, and a lift station to serve the area, and would sell the land to Kerkhoff Kraftsmen, Inc. In exchange, the contractor will purchase the developed land for $750,000 and build homes with a combined value of at least $7.75 million. The city will create a new urban renewal area to capture tax increment from the new subdivision, which will be used to repay the initial investment over the next 15 years. Ward 2 Councilman Jason Atherton believes the city is selling the land at too steep a discount.
At-Large Councilman Jeff Cayler notes that it may be true in the short term, but the city will more than recoup its investment over the life of the homes.
Former Mayor Mark Beardmore, who spoke during Monday’s meeting, says he has some concerns about the proposed development, primarily the city subsidizing home builders.
Under the current property tax code, the homes would generate just shy of $50,000 in additional tax revenue per year for Carroll, and the city would capture 100 percent of that due to the urban renewal area. A percentage of those revenues must be set aside for low- to moderate-income housing for 15 years, but the remainder will go toward repaying the city’s initial investment. The council voted 4-2, with Atherton and Ward 1 Councilwoman Deb Koster voting no, to acknowledge the need for the development and scheduled the required public hearing for the council’s April 27 meeting. Video from this section of Monday’s proceedings is included with this story on our website.
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