BOONE, Iowa—The Boone City Council is considering creating a program that will offer a financial incentive to people to build a new home in the city.  The possible program was discussed by the council’s Economic Development Committee and then was presented to the full Council Monday evening.

The proposal calls for the creation of a fund that will make available $10,000 to someone building a home with a value of $200,000 to $300,000.  The proposal would also include town homes with similar values.  The incentive would only be available to those who own and occupy the home.

Developers would have an opportunity to benefit by building a “spec” home.  If a developer were to build a qualifying home, but couldn’t get it sold within 30-days of receiving an occupancy permit, would be eligible to receive a reimbursement of all permit fees and would have a chance to split the $10,000 incentive with a purchaser.

City Administrator Bill Skare told the Council the plan would be funded with $150,000 from the city’s current general fund reserves.  A second $150,000 would be designated for the program in the next fiscal year.  Incentives would only be available to a homeowner with an occupancy permit and declaration of value.  He also said the program would be subject to review annually.

Council member Greg Piklapp has been working the program which is modeled after programs in other communities.  He said he anticipates a payback in new tax receipts in 3-5 years.  He also emphasized the program would not be available if a builder or homeowner selected to use the existing “Jump Start Boone” program which allows a tax abatement for a designated period on the first $75,000 of a new residential development or if a builder used the city’s Low to Moderate Income Incentive Program.

None of the plans have been finalized, but the Council could be presented with a program at their next meeting, March 19th and could vote on making it available effective May 1, 2018.