TOLEDO — A long-planned housing development on the campus of the former juvenile home property is moving forward as the City of Toledo looks to expand housing options and support community growth.

Toledo Economic Development Director Katherine Ollendieck said the Woodlawn Addition represents the next phase of a broader effort to repurpose the roughly 22-acre campus of the former Iowa Juvenile Home following the decision to construct the new South Tama County Middle School on the campus.

“That was one of the things the city put on the table right from the beginning,” Ollendieck said. “If we were able to break the land apart, then the city would make a small investment in infrastructure so that we could create new housing opportunities for Toledo.”

Early discussions with the state encouraged the city to pursue a more comprehensive redevelopment plan rather than leaving portions of the land unused. Once plans for the middle school were finalized, the remaining ground transitioned into what is now the Woodlawn subdivision.

Following asbestos mitigation and demolition of the former IJH facility, the property was officially divided between the school district and the city, allowing planning efforts for the housing development to begin.

Ollendieck said the subdivision has been designed with flexibility and long-term livability in mind, offering space for outdoor use, future expansion, and a range of home designs.

“The Woodlawn Addition has a thoughtful layout with well-planned lots,” she said. “It gives people the opportunity to build something that truly fits their needs.”

To help generate early interest, the city is offering a $10,000 rebate incentive for qualifying homebuilders, aimed at making lot purchases more accessible and encouraging development momentum.

While no homes have yet been constructed, Ollendieck said she believes the project will gain traction once the first build begins.

“I think once we get that first home going, people will be able to see the vision for the area,” she said.

Toledo Mayor Brian Sokol said the concept for developing the property dates back more than two decades, when the land was under different ownership.

“The idea of a housing development on that property dates back to the early 2000s, but like anything else, cost was always the hurdle,” Sokol said.

The property, originally owned by the Methodist Church and later held by the Toledo Community Development Corporation, was eventually transferred to the city.

“The opportunity to join the city’s property with the IJH land started the ball rolling to what is now the Woodlawn Addition,” Sokol said.

To prepare the site for development, the city invested approximately $2.5 million in infrastructure, including water, sewer and street layout. The project was funded through tax increment financing (TIF), allowing the city to cover costs without increasing property taxes.

“Using TIF, the city can pay the debt without using general fund dollars or increasing our tax levy,” Sokol said. “We wanted a place prospective home builders could build on, and with the completion of the new middle school, it’s a perfect location.”

The city also implemented a $10,000 rebate program to encourage early construction. The incentive is funded through city budgeting and future lot sales, and is issued after a home is completed.

“The city budgeted funds to rebate a couple homes early on, with the expectation that future lot sales would fund any further rebates,” Sokol said. “It was a way to encourage building and give a homeowner or developer instant equity in the property.”

Because the development falls within a TIF district and does not qualify for traditional tax abatements, the rebate also helps offset initial property tax costs for new homeowners.

Looking ahead, Sokol said the city has incorporated flexibility into the development by planning for a mix of housing types.

“The city considered duplex-style housing when drafting the lot design and covenants, with several lots specifically designed for duplexes,” he said.

Growth tied to broader community needs

Beyond new construction, Ollendieck said the development is expected to play a broader role in Toledo’s growth by increasing housing availability, supporting local employers, and strengthening the city’s tax base.

“We have a lot of people working in Toledo who are commuting in,” Ollendieck said. “This is one more piece that can help bring people into the community.”

She added that projects like Woodlawn are part of a larger effort to reshape perceptions of the community and highlight opportunities for growth.

“There’s still some perception that we’re stagnant,” Ollendieck said. “That is the polar opposite of this community.”