BOONE, Iowa—The Boone City Council vote to support a Utility Assistance offer for Destiny Homes during the meeting of the City Council Monday. Staff has been working with Destiny Homes on efforts to assist in holding down the cost of construction. When discussion began last year, there was hope to keep prices close to what’s considered affordable housing. Data used by the city has that price at $175,000. Rising costs for materials are putting that out of range. But, to help, the Council has approved offering a $75,000 Utility Assistance reimbursement once the project is completed. Destiny Homes is projected to build 17 homes on property at 332 West Second Street. City Administrator Bill Skare told the council that the city has over $65,000 already invested in the project and that doesn’t include funds used for demolition. It’s estimated the city would recover the funds invested through new property taxes created by the construction of new homes. It would take just over 6-years if all 17 homes are built and all those that purchase the homes use the available Tax Abatement program. Destiny Home was the successful developer selected by the council for the project and received the property for one dollar.
The Council also approved another development agreement Monday. KJ Properties had presented a plan to the Council’s Economic Development Committee last month to build 8-town homes on South Linn Street. The agreement calls for the reimbursement of up to $40,000 or $5,000 per town home. The reimbursement is similar to other opportunities offered to other developers through the city’s low to moderate income funds or LMI. Previously, the city reimbursed the builder $5,000 if the home or town home sold for less than $175,000.
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