The crown jewel of the 200-plus-acre Shiloh property is a 90,000-square-foot building that holds the church sanctuary and a number of offices.

But the building’s existence may be a giant hurdle in the grand plan to annex the Shiloh property into Kalona and build a large housing project.

Kalona real estate agent Haley Hershberger said that until developers know what the building will be used for they will be reluctant to commit to a major project.

“It scares them,” Hershberger said at a meeting to discuss the future of the Shiloh property Oct. 15. “Until you know what’s going to go into the building, it’s going to be hard to get a sub-divider in here.”

Earlier this year, Shiloh approached the city of Kalona with a proposal, annex the 200-acre property and Shiloh would give the buildings, an amphitheater, several ponds and water and sewage systems to the city.

The thought is the annexed property with city services will be more desirable for developers and homebuyers. A major housing development would add to the city tax rolls.

Recently, the Mid-Prairie Community School District announced it was not interested in pursuing use of the main building because renovation costs could top $1.5 million to make the building suitable for school uses.

Kalona City Administrator Ryan Schlabaugh said the city would incur about $10,000 per month in expenses in simply maintaining the building. He said the city would need to generate $15,000 per month in revenue from leasing the building, a price tag that would require a major institutional player to be the main tenant.

“If I could give the space to people, I would have them lining up,” Schlabaugh said.

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