Council approves urban revitalization plan and rezoning for proposed 195-unit development after neighborhood objections

The Cedar Falls City Council voted Jan. 21 to adopt a multi-residential urban revitalization plan, approve an ordinance designating the revitalization area and approve a rezoning that would allow a proposed 195-unit development at the southeast corner of Green Hill Road and Cedar Heights Drive.

The revitalization plan, intended to encourage multifamily development in a designated area, passed on first consideration by a 5-2 vote; the ordinance designating the revitalization area passed on first consideration by a 6-1 vote. Later in the meeting the council passed a rezoning ordinance (first consideration) moving roughly 13.28 acres from R-2 residential to MU mixed-use residential; planning staff said the rezoning is tied to a master plan and an associated site-plan review for the proposed development.

Why it matters: the urban revitalization plan offers tax incentives to encourage multifamily housing — a tool the city says is intended to increase housing supply — but residents in adjacent single-family neighborhoods objected to the size of the incentive area and potential impacts to traffic, schools and green space.

Staff presentation and proposed project Shane Graham, planning staff, explained that council previously approved new incentive guidelines to promote residential development and that the Hidden Pines Urban Renewal Plan was adopted at the Jan. 6 meeting. The agreement with UmenB, LLC (the subdivision developer) contemplates public improvements estimated at $2,000,000 and a tax rebate equal to 50% of the cost of public improvements over 10 years (up to $1,000,000), according to the staff presentation.

Graham said the urban revitalization plan includes a 10-year, 100% tax abatement on increased valuation for qualifying multifamily projects (three units or more) within the designated geographic area. He also noted a correction was made to the packet to include accurate existing zoning listings.

Public objections and council response Several residents who live near Millennium Drive and Luke Street urged council to remove two narrow southern strips of land from the revitalization area, arguing those parcels abut existing single-family neighborhoods, are small and would increase traffic onto Cedar Heights. Speakers said much of the southern portion sits in a different school district and raised concerns about sewer and public-safety service impacts.

“I am opposed to this plan,” said Joni Snyder, who said Lots 1–41 on two Huntington Ridge plats do not meet the criteria in Iowa Code 404 and should be excluded from the legal description. Speaker Luke Hannenburg said the southern strips “come quite far south” into backyards and that the nearby neighborhood bought homes knowing the prairie behind them would remain.

Council debated options including a two-week deferral and a narrower boundary. A motion to defer with direction to staff to remove the lower southern portions failed in a voice vote; several councilors argued that zoning already allows mixed-use or multifamily on the parcels and that incentive designation does not by itself change land-use permissions. Graham and other staff reiterated that any future development would still require planning-and-zoning review and council approvals.

School-tax and legal clarifications Staff emphasized that urban revitalization abatement does not waive school taxes under state law and that the plan is limited to multifamily incentives. Graham told council the map boundaries were chosen so the revitalization area would include more than a single property, as state code prohibits creating an urban revitalization area over only one building or parcel.

Votes and next steps The multi-residential urban revitalization plan passed 5–2 on first consideration; the follow-up ordinance designating the area passed 6–1 on first consideration. The rezoning of the 13.28 acres to MU was approved on first consideration (roll-call recorded as unanimous). Staff said the developer will still need to obtain final plat and site-plan approvals and that the urban revitalization incentive applies only to multifamily development (three units or more).

Ending: Councilors asked staff to continue outreach to affected residents and to ensure infrastructure (sewer, traffic improvements) and parks considerations are addressed during subsequent site-plan and permitting work. The project proponents will return to council with the required procedural agreements and site-plan approvals.