Rosemont Companies of Cedar Falls has an option to purchase about 7 acres of property at 1015 S. Sixth Street near Linn Creek. The company’s president Mike Hayworth and Tim Verheyen of the design firm ISG presented its preliminary plans for a development which includes 38 housing units.

If the project moves forward the city would be asked to partner with the development team to install infrastructure which includes a public street, sewer and sanitary sewer at about a $450,000 cost to the city, subject to change.

The new public street would branch west off of South Sixth Street and end in a cul de sac.

State and federal grant funding for the Edgewood Extension project reduced the city’s contributions to that project through its local option sales tax capital funds, making about $480,000 available for a project such as this.

T-R PHOTO BY LANA BRADSTREAM — Marshalltown City Council Member Raymond Starks, Mayor Joel Greer and City Clerk Alicia Hunter discuss business during the regular Monday meeting.

The specifics of the development are still being analyzed but it would include 16 duplexes and up to 22 townhomes to be built in phases.

The development plan also includes a bike trail connection running north to south through the development and a pond on the north side of the development.

“We felt this is an up and coming area with very good proximity to the golf course as well as many other amenities,” Hayworth said. “Overall the art district has a unique, hip atmosphere with different offerings that people wouldn’t really expect. The amenities here are exactly what you want in a housing development.”

Rosemont Companies has been working with the city on a housing project in the Southeast Estates Subdivision.

One of the largest challenges the project faces is building homes fit for the housing market.

CONTRIBUTED GRAPHIC — A conceptual design of a housing development proposed by ISG and Rosemont Companies to the Marshalltown City Council during a regular meeting on Monday. The development would be located west of S. Sixth Street.

“The overall price point – it’s a tough market to hit the appraised values in terms of the for sale products,” Hayworth said. “Everything we’re proposing would be for sale. We’re kind of between a rock and a hard place for what we can ask for.”

Hayworth noted factors like the tornado, derecho and COVID-19 pandemic have impacted construction costs.

“You start really pressing the upper limits of what a project can support in terms of construction value. The overall appraised value becomes a concern,” he said.

The proposed development would have a homeowners association which would handle lawn care like mowing, raking and snow removal at a fee to the homeowners. The home designs are expected to include senior-friendly features like walk-in showers but would be open to homeowners of any age.

“They’re going to have a hard time getting bank funding unless we help them,” said Joe Carter, CEO of MARSHALLTOWN Company, during public comment. “Wouldn’t it be exciting to see 30 homes built in one shot. This is exactly what we’ve been talking about in the chamber, getting our 22 percent commuter rate cut in half. Wouldn’t it be nice to go from one of the more impoverished communities in the state to one of the wealthiest?”

The council voted unanimously to move forward with exploring the project. In an interview prior to the meeting, Jessica Kinser said the timeline for the project beginning if it is to happen is unknown at this point. Before anything can begin the developer would need to establish an LLC.

In other business the council discussed several options to resolve a $62,193 deficit in the general fund for fiscal year 2022. The options discussed were:

• Reduce agreement with the Chamber for tourism and marketing

• Reduce non-bargaining wage increase from 2.5 percent to lesser figure

• Transfer council-designated local option sales tax for deficit

• Use fund balance fiscal year 2021 projected to end with surplus of $400,000

• Reduce line items

Line items were suggested by city departments when asked for reductions.

The council did not come to a final decision on the deficit but asked for the chamber to be present at a special meeting on Feb. 1 to discuss how tourism and marketing funds are used.

——

Contact Joe Fisher at 641-753-6611 or jfisher@timesrepublican.com