Citizens in Clarinda will have an opportunity to share their views with the Clarinda City Council July 28 regarding the proposed sale of two residential lots to the Clarinda Economic Development Corporation for its housing program.
The council set the date of the public hearing at its July 14 meetings. The two lots are located at 508 and 512 East Stuart Street. The CEDC intends to build new homes on each of the properties.
Prior to setting the hearing, the council passed a resolution authorizing the issuance of a $14,000 grant to CEDC to fund the purchase of the property.
“As a government entity, we can’t just transfer the property to Economic Development. We can only transfer to other government entities. The way around this is we have to pass a resolution saying we’re going to give the CEDC a grant,” Clarinda City Manager Gary McClarnon said.
McClarnon said he placed a market value of $14,000 on the properties. Therefore, the city would issue the grant in that amount. Then, after public hearing, the public hearing the council could take action on selling the land to the CEDC for that same amount.
“Yes, it would be much simpler if we could just take and transfer it to them for housing needs. However, the way the Code is written in the state of Iowa, we have to do it this way,” McClarnon said.
After scheduling the public hearing on the proposed sale of the two lots, the council also approved a resolution of support for a Workforce Housing Tax Credit application to be filed with the Iowa Economic Development Authority by the CEDC. The tax credits would aid in financing the construction of the houses on the two lots.
In order for CEDC to apply for the tax credits, McClarnon said the city council must formally recognize the need for the housing projects. The city must also provide a local match for the project, which would be the in-kind donations of the lots to the CEDC through the required sales process.