BOONE, Iowa—The Boone City Council did approve an incentive program to encourage additional residential construction in the city. The program is patterned after similar efforts in a number of other communities according to City Council member Greg Piklapp. The biggest debate on the proposal was the dollar range for new home or townhome construction. Originally the plan was centered around a price of $200,000 to $300,000. The staff proposal for the council was $200,000 to $350,000 and the council, on a 4-3 vote did approve a range of $200,000 to $400,000.
Basically, any developer or individual will agree to build a new home or townhome in the set price range. Upon completion, and once the Certificate of Occupancy is presented, the City will reimburse the new owner $10,000.
If a developer begins a new home or townhome, without a buyer or a contract to sell the property, then it can be declared a “spec” home. The developer would then be eligible for the reimbursement of permit fees or building inspection fees upon completion. Once the home is sold and a Certificate of Occupancy is issued, the developer and the new owner would split the $10,000 incentive.
The incentive is only available on new construction and is not available if some other incentive or infrastructure assistance is used on the designated project. The incentive is also only available for owner occupied and is not available for properties owned by LLCs or any rental units.
An agreement for private development was also approved to be used in conjunction with the program.
City Administrator Bill Skare has said the program would be funded with $150,000 in each of the next two fiscal years, which will be drawn from reserves. Skare also told the Council that a proposal was made to the Boone County Supervisors to participate in the program by rebating to the City, the portion of the new taxes that would go to the county for a three year period. That agreement has not been approved at this time.
Last year there were 17 new homes or townhomes built in Boone. Three were considered “spec” homes. The average price was just over $200,000 with the highest just under $400,000.
Boone Mayor John Slight on the KWBG Tuned In show said he supports using the incentive to help continue growing the city’s tax base.
