City signs MOU with AREA to seek developer for small workforce-housing pilot on Harrison/Welbeck lot

The City Council approved a memorandum of understanding with the Ames Regional Economic Alliance (AREA) to recruit a developer for a small owner-occupied workforce housing pilot on a city-owned parcel at the Harrison and Welbeck Avenue intersection. The MOU authorizes AREA to serve as the city’s contact to seek a developer with the intent to use the state workforce housing tax credit program and local incentives.

Key elements: The MOU asks AREA to seek proposals for 8–12 owner-occupied units with an emphasis on energy efficiency and high-efficiency/all-electric options where financially feasible. City staff noted the state workforce-housing tax credit program can allow competitive financing without additional local subsidies beyond the normal abatement/conveyance structure; the MOU does not commit additional city capital outlays beyond the land contribution or standard abatement approaches already used in similar projects.

Why it matters: Council members said the region needs starter and workforce units to support employers and retain workers. The council approved the MOU on the condition that proposals returned to council must meet the RFP parameters already discussed in 2024 and that final development agreements would require council approval.

Process and next steps: AREA’s Brenda Dreyer (AREA) will approach candidate builders and return with a concept and a developer recommendation; council stressed it expects to review a conceptual subdivision plan, sample house products and a financial pro forma before any final commitment. If an agreement satisfies the MOU terms and the council, a development agreement and any land conveyance would come back for formal approval.