Downtown specialist: Housing a key to economic growth

By Bob Steenson, bsteenson@charlescitypress.com

Charles City has challenges and opportunities when it comes to improving the community’s economy health, but one of the focuses should be on housing, a state economic development specialist said Wednesday evening.

Jim Thompson, a downtown specialist with the Iowa Economic Development Authority — and also the former Charles City development director until he left to work for the state in 2007 — gave a presentation about community demographics and economics.

He also talked about a state program the city might want to consider to help address housing needs.

Thompson spoke to about two dozen people, a mix of business owners, city and county officials and others. He said the information he was presenting was the same information that would be studied by any business considering locating in Charles City.

He said the average household income in Charles City is somewhat below average for a city this size, but the the average population age is younger than similarly sized cities.

He noted that the population has been on a decline, but the decline has become less steep in recent decades. The population dropped from a high of 10,309 in 1950 to 7,878 in 1990, but has stayed in the mid-7,000s since then.

One positive sign is the number of young children in the community has been increasing, he said.

Thompson also said that even though the number of people living in Charles City is currently estimated at 7,590, the number of people actually in the city during the daytime is projected at 8,466 — almost 900 more.

Most of those are people who work in Charles City but live elsewhere, Thompson said.

“People work where they have to, but live where they want to,” he said. “How can we find out why people drive to Charles City to work?”

Thompson said Charles City is below average on the number of vacant housing units available, and more than two-thirds of the units are occupied by only one or two people.

A population decline is inevitable when there are fewer people in each housing unit and the number of housing units is limited, he said.

Thompson talked about an urban revitalization area program authorized by the state that can eliminate up to 100 percent of additional property taxes on new housing or improvements to existing housing, for a period of up to 10 years.

For example, a home that was increased in value from $100,000 to $150,000 could avoid all additional property taxes on the extra $50,000 for a period of up to 10 years, or whatever period was established by the city. A newly built home could avoid all property taxes on the value of the home for the period set up by the city (the owner would continue to pay taxes on the value of the land).

The program can also be available for commercial housing projects of three or more units, he said.

“There are few projects that won’t cash-flow when you build in this savings,” he said. “It’s the best incentive I’ve ever seen.”

He said if the city considers setting up such a program, it should be careful that it isn’t structured just for new construction.

“The best home improvement is owner-occupied major rehab,” he said.

“We have to get serious about this,” Thompson said. “I think it’s a big deal. There are so many towns that are dying, and I think it’s housing.”

Thompson also said he spent some time in Charles City before the presentation and noticed a couple of things.

“Cars on Main Street do not yield to pedestrians. Period,” he said. “If you want shoppers downtown, you need traffic that allows people to cross the street.”

Thompson said he was concerned that parking for the movie theater was across the street and there was no clear way for movie patrons to safely cross. “What happens if someone gets hurt?” he asked.

He also said that public parking areas need to be clearly marked as such — not for the people who live in the city but for anyone visiting.

Among Thompson’s other comments:

• “A healthy downtown reflects a healthy community.”
• “City governments are not very good at running economic development. They’re good at running towns.”
• “If private industry doesn’t engage with housing it isn’t going to be as successful.”
• “Empty-nesters and millennials generally want the same things in housing.”
• “When you invest in brick and mortar you always win as a taxing body. You are investing in your tax base.”