T-R PHOTO BY LANA BRADSTREAM Marshalltown City Councilman Gabe Isom listens to City Administrator Jessica Kinser explain a housing development partnership which is underway near Olive Street. She brought the project to the council to determine interest and get more direction on whether or not the city should get involved.

Whether or not the City of Marshalltown will get involved in a housing development partnership remains to be seen. At the regular Monday meeting, City Administrator Jessica Kinser told the Marshalltown City Council about a partnership between HCI and JBS to build a multi-family residential complex south of Olive Street.

The development would require an extension of South Seventh Avenue at a cost of $1.46 million.

“We do want South Seventh Avenue as a through street to ultimately, in that bigger picture, make that connection with Southridge,” she said.

Kinser said some infrastructure is already in place but is not complete and would require finances. She said it would be similar to the partnership with Kading Properties in terms of streets, sewers and storm sewers would be the responsibility of the city to pay for. Water infrastructure, design plans and specifications and construction oversight would be the responsibility of the developer.

“The big question is how do you fund $1.46 million,” Kinser said. “There is not an easy answer to that, or a straightforward answer like we had with the other two projects.”

She briefly presented four possible financing options:

• General obligation bonds. Kinser told the council they will have a discussion about bonding soon as the city has a lot of competing priorities.

• Road use tax. She said the city received $246,000 from the Iowa Department of Transportation. It was not anticipated, nor budgeted for.

• Council-designation LOST (Local Option Sales Tax) funds

• The recently passed federal American Rescue Plan, from which Marshalltown is receiving $3.7 million and can be used for storm water and sewer infrastructures. However, Kinser said it does not look like the city could use it for road construction. She predicts more discussion will be held on how the city can spend the American Rescue Plan funds.

“I did want to get this in front of you tonight so the developer has direction and we as staff have direction as to whether or not this is an infrastructure partnership you would like to participate in,” Kinser said.

She said the project was placed on the agenda to see if the council was interested and added it could be discussed again at the May 24 meeting.

Councilman Gabe Isom asked what percentage of the $1.46 million the storm water cost would encompass. Heather Thomas with CGA estimated it would cost $100,000. Isom said that leaves a large chunk to pay for, but he has a hard time thinking the project is something to not prioritize.

“Just for the immediate need and future potential from a housing perspective,” he said.

Councilman Gary Thompson agreed the city needs to think about property which can be developed, but does not think this is the answer, since development would be limited to the east side of the road. He believed the other side was in a flood plain. Housing Community Development Director Michelle Spohnheimer told Thompson he was correct, but further east there is agriculture property which could hold housing.

“I think it is a very important corridor there and the return on investment would be long-term,” she said.

Thompson said perhaps a road is necessary there, but should be placed farther east.

“I just don’t see how this is the best money we can spend without developing both sides of the street,” he said.

Spohnheimer said there are a lot of different things happening in the area, such as storm water retention and the typography does not allow a street to go through. The city would have 90 acres to service with this connection. Thompson said he just did not want to put the cart before the horse.

“I don’t see putting it on the taxpayers in that location, and I don’t see putting it on the developer,” he said.

In other business:

• Marshalltown Police Chief Mike Tupper presented Officer Stephen Sheets with the 2021 Employee of the Year award, which is sponsored by the Times-Republican.

• The council approved accepting proposals of marketing Marshalltown. The idea is to hire someone or an organization in Marshalltown to market the city and its features. Since Iowa Valley Community College District will no longer produce material to market Marshalltown to residents beginning July 7, the city would like additional options. The marketing will not exceed $40,000. Interested people need to submit a proposal by June 7. Kinser said the city would like a variety to choose from — videos, table toppers, social media and more.

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Contact Lana Bradstream at 641-753-6611 or lbradstream@timesrepublican.com.