Waukee council approves $1 sale, $970,000 urban renewal incentive for Bluestem Village affordable housing

The Waukee City Council voted to authorize the sale of a 6.44-acre city parcel to Bluestem Village LLC and approved option and development agreements to support a 52-unit affordable housing development.

Nick, a city staffer presenting the item, summarized the proposal: “The proposal is $1 sale.” He said the project would be developed by Bluestem Village LLC, a joint venture of Greater Des Moines Habitat for Humanity and Home Inc, and that the units would be subject to long-term affordability controls. “The city incentive request is $970,000, which will be in the form of urban renewal rebates,” Nick said, adding that approximately $780,000 in workforce housing tax credits is planned to help fund the project. He also told the council that a short exclusivity period will be provided to allow the parties to complete required documentation and that no other proposals were received during the competitive period.

According to staff, the project envisions 52 affordable housing units; affordability mechanisms described include deed restrictions for Habitat units and use of a community land trust for other units. Staff told the council the development would target households at roughly 60% to 100% of area median income, and recommended approval of the final determination and agreements.

Council members recorded unanimous approval to authorize execution of the option and development agreements and the $1 sale. The resolution directs staff to execute the agreements consistent with the terms presented and to proceed with required documentation and urban renewal rebate processing.

Next steps: staff will finalize and execute the option and development agreements consistent with the approved terms, move forward with required closing steps, and implement the agreed affordability controls; the exclusivity and contract conditions specified in the agreements will determine timing of construction and subsidy draws.