Urbandale staff recommends Volker Development for 50‑unit affordable housing at 10841 Douglas

The Urbandale City Council heard a staff recommendation to advance Volker Development’s proposal for a 50‑unit affordable housing project at 10841 Douglas Avenue, the city‑owned former Econo Lodge site.

Assistant City Manager Curtis Brown said the city received multiple proposals after a Sept. 2 RFP and that Volker — a developer headquartered in Fond du Lac, Wisconsin — rose to the top after staff vetting and consultations with the Iowa Finance Authority and Polk County Housing Trust Fund. “The Volker project is 50 units, affordable at the 40–50% AMI level,” Brown said, listing 110 total bedrooms and an approximate construction budget of $17,500,000. He said Volker is offering $750,000 for the land and proposed a standard five‑year sliding‑scale tax increment financing package for the Northwest Market Center area.

Brown told the council staff estimated the city’s net investment over 15 years, after accounting for expected property tax receipts and TIF incentives, would be about $1,050,000. He acknowledged a numerical inconsistency in his oral presentation and said staff would follow up with corrected figures. “We want to be very forthright,” Brown said, noting the city will verify all project assumptions during due diligence.

The proposal includes amenities and accessibility features — a supportive services office, community lounge, fitness center, bike storage, internet access, a dog run, community garden and five fully accessible units plus an additional unit for residents with hearing or visual disabilities. Environmental features in the proposal include native plantings, a rooftop solar array, water‑conserving fixtures, LED lighting, a rain garden and bioretention cells.

Brown said Volker intends to pursue 9% Low‑Income Housing Tax Credits and that the city’s Thriving Communities designation yields scoring benefits in the competitive IFA process. He said staff plan to bring a resolution and letter of intent to council on Nov. 18 so the developer can proceed with LIHTC application work. Brown also said staff had identified a secondary developer to pivot to if negotiations with Volker do not proceed.

Council members asked for additional documentation about Volker’s Iowa experience, LIHTC track record and clarifications on affordability periods and ongoing maintenance obligations. Brown said those items are part of the due‑diligence checks and promised a follow‑up packet before the Nov. 18 meeting. “We’ll verify everything they’ve submitted,” he said.

Next steps: staff will complete due diligence, supply written clarifications on the city’s projected net investment and bring a resolution and letter of intent to the Nov. 18 council meeting for formal direction and to support the developer’s LIHTC application.