Charles City approves development agreement for Kading housing project

By Travis Fischer, tkfischer@charlescitypress.com

The Charles City Council approved a development agreement with Kading Properties as the next step toward a major housing development project during a regular meeting on Monday, March 3.

The purchase agreement, a joint effort between the city and the Charles City Area Development Corp. (CCADC), will facilitate the development of the land on the north side of the newly extended 13th Street in the Southwest Development Park. The CCADC approved a similar version of the purchase agreement on Feb. 26.

Both the CCADC and the city are selling property they own in the area for a token payment in order to entice the housing development.

The city recently acquired its property in a trade deal with the Floyd County Medical Center that vacated part of 13th Street by the Medical Center and gave that property to the FCMC. The Medical Center in turn gave property it owned to the west of the hospital to the city to be part of this housing deal.

Additionally, the city is offering the developer a 10-year 100% abatement of the property taxes on the additional value added to the property.

The developer will agree to install all the utilities and then turn them over to the city, and will install the streets. The streets will remain the property of the developer, but will be available for public use.

The entire project rests on Kading being awarded Workforce Housing Tax Credit through the Iowa Economic Finance Authority. Charles City became eligible for extra points toward a project being awarded the tax credits when the city was named a Thriving Community two years ago.

“We’re very excited to work with Kading moving forward,” said housing committee member Emily Garden.

In a related matter, the council approved a resolution allowing the city to apply for an AARP challenge grant, which, if awarded, would provide up to $25,000 toward the construction of a sidewalk and trail connecting 13th Street to 11th Street in the area where the housing development will be.

On another housing development matter, the council held a public hearing and first reading of an ordinance to vacate a utility easement on the lots on the south side of 13th Street, where the Commonwealth apartment complex is being developed.

“With this development coming, there’s no need for this utility easement on the property,” said City Administrator Steve Diers.

Following the first reading, the council agreed to waive the second and third readings of the ordinance to expedite the vacation of the property.

Addressing street closure requests, the council met with Tonya Nosbisch, who is planning the revival of the St. Patrick’s Day Parade coming up this month.

Planned for 1 p.m. on Saturday, March 15, the parade will stage at Hot Shots and travel up Main Street, around Central Park, and back down Jackson Street. This is the first year in several years that the Parade has happened and Nosbisch says nearly 30 people are interested in participating thus far.

“I’m glad somebody wants to bring this back,” said Council Member Phoebe Pittman. “March is a good time to have something like this.”

The council also approved a request from Soifer Family McDonald’s to close the streets around Central Park for the annual Kid’s Day Parade.

As in previous years, Kid’s Day will start at 10:30 a.m. on Thursday, July 3, kicking off this year’s Independence Day festivities.

In other business, the council set a public hearing date for the FY26 general fund levy, which is set to be $8.30530. The public hearing will be held ahead of the regular meeting on Monday, April 7, followed by another public hearing on April 21 where the council will take comment about the FY26 budget as a whole.

The council also approved the first pay request from Kingland Construction for work done on the City Hall/Police Department Renovation Project. The first payment, amounting to $92,352.61 after accounting for the 5% retainer, largely accounts for mobilization and other pre-construction costs, along with some initial demolition work.

Finally, in personnel matters, the city is preparing for the planned retirement of City Clerk Trudy O’Donnell. The council’s personnel committee will be reviewing applications to fill the commission, which are due Friday, and will narrow down options for the city to consider.