The municipality will transfer plots for residential purposes

May 20—OTTUMWA — The Ottumwa City Council is expected to sell 30 parcels to Kading Properties for residential development during Tuesday’s meeting at the Bridge View Center.

The parcels are all vacant parcels owned by the city and would be intended for infill on sites that, in most cases, were former properties with homes on them. The 30 lots are mostly north of the Des Moines River, and the city would sell them for $125 per lot and pay all abstract fees. However, the abstracts would not be ordered all at once, but in small batches.

Kading’s proposed housing units, which have worked in 26 communities across the state, would help meet the city’s growing need for “missing middle” development, meaning market-rate housing that is affordable to residents with middle income.

Some of Kading’s previous properties include duplexes and triplexes, and the company manages its own properties.

The development projects would come from workforce housing tax credits through the Iowa Economic Development Authority, provided Kading’s application is supported by the city and approved by the IEDA.

There will be no tax increment financing involved in the development, but Kading could receive an urban revitalization tax credit through the city as long as the city continues to allocate funding annually to the Build Ottumwa program.

Under the workforce housing program, Kading could only spend $298,021 on single-family homes and $241,643 on multi-family homes.

In other matters:

– The council is expected to approve a memorandum of understanding between the city and Teamsters Local #238 regarding the municipal collective bargaining agreement. A tentative agreement had been ratified by April, but the parties made further revisions, removing the pay schedules from the contract and placing them under the city’s compensation and classification guidelines in its employee handbook. The new agreement takes effect on July 1.

The meeting starts at 5:30 PM

— Chad Drury can be reached at [email protected] and on Twitter @ChadDrury