The Sioux City Council approved a development agreement for the Lieber Heights North Side residential project after a lengthy presentation, neighborhood questioning and a 4–1 vote.
City staff and the developer described the project as a roughly 48‑acre subdivision that could yield 156 residential units — 85 single‑family homes, 38 duplexes, 21 triplexes and 12 fourplexes — with an estimated assessed value of about $69 million at full build‑out. The developer said initial homes could start under $300,000 but staff noted that price is a projection, not a contractual guarantee.
The city’s assistance includes up to $2 million in forgivable DIG (water and sewer revenue) funds for phase 1A and additional DIG loans of $1 million for later phases (repayable through lot sales). The agreement also provides for tax‑increment financing (TIF) not to exceed $9 million, with 80% of taxes generated during the TIF period (01/01/2030–12/31/2039) to support infrastructure in the development and 20% earmarked for low‑to‑moderate income housing citywide.
Council members pressed developers and staff on several points raised by neighbors: how much dirt would be hauled off‑site, erosion and slope stability, stormwater controls, maintenance bonds and insurance coverage, and whether homeowners would face special assessments. Staff said the development agreement requires builder’s risk, liability insurance and a warranty/maintenance bond, and that infrastructure will not be charged back to homeowners because DIG and TIF assistance cover those costs. Developers said the site is planned to balance soils on‑site and that no large export of dirt is intended; they offered to provide additional documentation at later design milestones.
The agreement includes a traffic‑study contingency: the traffic study must be completed no later than Feb. 28, 2026; if the study recommends substantial changes or additional offsite improvements, the city and developer will negotiate cost sharing and either party may terminate the agreement by March 31, 2026, if no agreement is reached.
Neighbors at the council meeting called for written commitments — for example, a recorded estimate of haul quantities once plans reach higher design completion and a buffer between certain lots and adjacent properties — and expressed unease about long construction timetables and potential erosion. Council members acknowledged those concerns and asked staff to secure additional plan information and to enforce erosion control and permitting requirements.
Council debate focused on balancing housing supply and affordability aims against fiscal prudence and precedent for using city assistance. One councilmember said the per‑lot public cost was too high and voted against the agreement; four members voted to approve it. The ordinance and the development agreement now move to the implementation stage under the timelines specified in the contract.