T-R PHOTO BY ROBERT MAHARRY City of Marshalltown Housing and Community Development Director Deb Millizer and Ralston Eco Homes Owner Jeff Ralston of Shellsburg address the city council about a CDBG Disaster Recovery Housing Program project during Monday night’s meeting. The council unanimously agreed to name Ralston as the developer on the infill project, and the two parties will now work together to identify lots where homes can be constructed.

A developer from Shellsburg who has completed a similar project in Atkins will be working to build infill housing units in Marshalltown after the city council unanimously agreed to move forward with his plan during Monday night’s meeting.

As Housing and Community Development Director Deb Millizer explained, the project is part of the Community Development Block Grant (CDBG) Disaster Recovery Housing Program, and the city is not involved other than awarding the contract and potentially gifting vacant city-owned lots to the developer, Jeff Ralston.

“The goal of this project is to add affordable, for-sale, infill housing for income qualified households within Marshalltown’s existing neighborhoods,” Millizer said.

She added that Ralston Eco Homes came highly recommended by the Iowa Economic Development Authority (IEDA). As she opened up the floor for comments, Councilor Greg Nichols said that he felt the project was “moving in the right direction” and expressed his support for any effort to construct more infill housing in Marshalltown.

Councilor Sue Cahill asked Millizer about the price cap on the homes, which she replied is $175,000 per unit regardless of whether it is a single-family home or a duplex. During the public comment period, Doris Kinnick commented that $175,000 was still too high of a price point.

“It’s gotta be lower. That cap’s gotta be lower than $175,000 if you want single families to at least have a chance of starting a family and starting a new life,” she said.

Tim Bradbury didn’t feel that building homes at such a high price point would blend in well on the north end of town where he resides, and he felt the entire proposal was “way out of whack” for the few people it would help.

Councilor Melisa Fonseca then brought Ralston back to the speaking podium to answer several questions about the plans for the project, and he first clarified that the state sets the $175,000 cap.

“I’ve been in the neighborhood that we’re thinking about, and it’s our intention to try and make that price lower,” he said. “We also will look at the neighborhoods, and our intention is to try and build homes that look like they belong in the neighborhood.”

Right now, there are multiple floorplans Ralston has available: a standard duplex and a single family home. Purchasers will be required to income qualify and demonstrate the ability to pay a mortgage.

After providing several more specifics on the plans and reiterating his pledge to build homes that fit the character of the neighborhood. Ralston also addressed Kinnick’s comment about the price needing to be lower, noting that construction costs have skyrocketed in recent years.

According to the council resolution, Ralston has committed to finishing the project in 30 months, but one of the biggest hurdles is going through the state to vet contractors and subcontractors and complete an environmental review.

“My intention would be to start with four units right away, and then those can be completed in under seven, eight months from the time that we start. I would hope that we start in the fall,” he said.

Fonseca felt the project would be great for bringing development back to vacant lots and help more Marshalltown residents own homes. Ralston commented that the individuals who bought the homes in Atkins had their lives changed, having previously only dreamt of owning homes but not being able to afford it.

With the $175,000 price point as the cap, Councilor Mark Mitchell asked what a lower end cost might look like, and Ralston noted that the lots alone in Atkins cost $60,000. Estimating lower lot prices in Marshalltown — especially if the city is willing to donate some of the lots it currently owns — Ralston hoped the homes could end up being much cheaper here.

“It would be crazy to sell a house for $175 (thousand) in a couple of these neighborhoods that we’re looking at. It just doesn’t work. And so $50,000 less than that would be my hope, but we’ll just have to see what the market (does) and what it’s gonna cost me to build it,” he said.

Councilor Gary Thompson wondered about whether the lots needed to be identified now and if Ralston was expecting the city to provide them to him. He replied that “expect” was a strong word, but he hoped they would give him four lots to reduce the overall cost.

If a deal couldn’t be reached to that effect, Ralston would still likely build housing in Marshalltown, but it would be a mix of infill and development. The council ultimately voted unanimously to name Ralston as the developer.

In other business, the council:

Approved the consent agenda as listed except for an item on funds from a street project being reallocated for alleyways being pulled for further discussion.

Approved a five-day Class C retail alcohol license with outdoor service for the Midnight Ballroom for a rodeo to be held at the Central Iowa Fairgrounds by a 6-1 vote, with Mitchell opposed.

Approved the city fee schedule changes by a 6-1 vote with Thompson opposed.

Approved the proposed plans, specifications, form of contract and opinion of probable cost for the Water Plaza at Mega-10 Park non-skid rubberized coating project.