The Marshalltown City Council set an April 26 public hearing on a development agreement with Glenwood Marshalltown LLC. during a special meeting on Wednesday.

The development will be north of West Merle Hibbs Boulevard and west of South Sixth Street. According to the agreement, Glenwood Marshalltown will construct more than 40 housing units which includes single and multi-family units.

The city would agree to make economic development payments to the Glenwood Marshalltown not to exceed an estimated $1.4 million.

“How this agreement is structured, once the houses get built we will rebate incremental taxes to the developer,” said Jessica Kinser, city administrator.

The payments will be made on Dec. 1 and June 1 of each fiscal year and will be equal to 59.17 percent of the incremental property tax revenues the city receives for the property. The city will retain the remaining revenues to provide assistance for low and moderate income housing.

At a later date the council will need to lay out the rules for how the low and moderate income housing funds from this development will be dispersed, according to Kinser.

After the passage of the resolution to set the public hearing, the council went into closed session for two real estate related items. Following discussion of each item the council directed the city administrator to proceed as discussed in closed session.

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Contact Joe Fisher at jfisher@timesrepublican.com.