Kalona approves developers TIF agreement with Moyna Holdings on Southtown resident development

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Moyna Holdings was given the green light Tuesday evening, Sept. 8, by the Kalona City Council.

The council approved the Developers TIF (Tax Increment Financing) agreement with Moyna with stipulations as a result of concerns about financing and transparency of the agreement that were raised by Planning & Zoning chair Larry Christenson and Phil Ropp.

Both objected to the city issuing General Obligation (GO) bonds of $700,000 to the developer in addition to other funding.

Council members also objected to using GO bonds which would be repaid as the project developed. The council also voted 5-0 to direct the city staff to find other city money to raise the $700,000, including from city reserves.

Christenson, Ropp, and some council members objected to the Developers agreement not being made public before the P & Z Commission acted on the subdivision plat for North Ridge subdivision. They also disapproved of holding a meeting to move forward on the agreement when a report from the Sept. 1 city council meeting could not be published in a timely fashion. Both Christenson and Ropp objected to the funding plan and expressed concern as to what might happen if the project didn’t develop as projected. City Administrator Ryan Schlabaugh said the city would not make projected payments unless the development proceeds as projected.

“We are excited that this gives us the direction to move forward with the grading and demolition of buildings,” said Adam Kos, project manager of Southtown for Moyna. “We can now get started on the grading, building the infrastructure and engaging builders and realtors in the project.”

Two websites are now live with information about the Southtown Area development (kalonaSTA.com) and purchasing lots in the North Ridge subdivision (NVprops.com).

“This project is going to have a ripple effect throughout the community,” said Kos. Council members complimented Kos on working with the city on the project that promises expansion of the city and recreational opportunities including trails, parks, etc.

Kos also pointed out that the developer is working with the Washington County Conservation Board and the city on trails, park area and a prairie grass project. All these projects will have to be approved by the city council.

Financing

The fiscal commitment according to the agreement:

•Developer gets $700,000 payment for infrastructure improvements upon approved receipts. The agreement originally stated those funds would come from GO Bonds; however, due to objections of Christenson and Ropp, as well as some council members, those funds will come elsewhere, such as reserves.

•$100,000 payment through Shiloh Cemetery Savings Fund to demolish walls, structures, restrooms, rough grade, and provide berms for esthetic purposes (2021-22 fiscal year).

•$50,000 from Road Use Tax (RUT) in 2022-25.

•$1,000,000 in traditional TIF rebate program for Phase 1 to include North Ridge Subdivision with an option for Incline Grove area upon acceptance of plat approval by Planning & Zoning. First certification would fall to Dec. 1, 2022.

•Positive TIF cash flow with 10% yearly build out of $400,000+ homes have TIF commitment paid by FY 2027-28.

The Council approved the second reading of the Planning & Zoning’s recommendation for accepting the rezoning application for Southtown North Ridge Subdivision which includes 53 single family homes zoned R-1, 9 lots for two-family homes zoned R-2, and 3 lots zoned R-3 for multi-family residential. Final reading will be Sept. 21.

•Accepted the recommendation of the P&Z to approve the preliminary plat for Southtown.

•A motion to table the acceptance the names of streets in Northridge Subdivision until the city gets clarification from E-911 Supervisor Cara Sorrells for naming one of the streets Timberline Avenue. Sorrells had earlier expressed concern of possible confusion with Timberline Drive in a development in Riverside.

•Approved the following Iowa Alcoholic Beverage license applications renewals: Tequila Wine & Spirits class E Liquor license with Class B Wine permit, Class C Beer permit, and Sunday sales; Best of Iowa, Class B Native Wine permit.

•Tabled a resolution for waving the right to review parcel split for Rob Rich after Zoning Chair Christenson expressed concerns about the GIF map.

Council members thanked both Christenson and Ropp for expressing their concerns.

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