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West Point reviews $2.5 million infrastructure plan to build workforce housing
Summary
City staff and developer Kelby Herman presented a subdivision plan for Washington Street that would begin with about 77 multi-family units and $2.5 million in infrastructure work, with tax-credit applications and city contributions to water and sewer under discussion.
City staff presented a detailed plan for a workforce housing subdivision on Washington Street and said the infrastructure to support initial construction would cost about $2.5 million.
David, a city staff member, told the council the infrastructure estimate includes roughly $699,000 for water and sewer and about $1.8 million for roads and earthwork. He said the project would begin with approximately 77 multi-family units (not counting single-family lots) and noted the city’s 2018 housing study recommended 148 total units and 88 workforce units as a local need.
Developer Kelby Herman, identifying himself as "Kelby Herman, K. Herman Development," described the product mix the developer envisions: quadplexes along Washington, duplexes, townhomes and slab-on-grade units intended to serve seniors and the workforce. Herman said his firm has built similar projects in nearby communities and is pursuing tax-credit financing for income-restricted senior units.
The council and staff discussed how the city could support the development. City staff outlined a financing approach that would use utility recoupment for part of the water and sewer costs and would apply available local TIP funds toward streets, drainage and other site infrastructure to keep unit costs lower for tenants and buyers. Staff said a Department of Development match of about $1.44 million has been approved for the workforce portion, and an application to an affordable housing trust fund for a subset of units totals about $1.5 million.
On timing, staff recommended soliciting bids within the next three to four months, with a target to begin site infrastructure late summer or early fall and construction to start in April 2026 if tax-credit funding is secured; buildout of the full development could take five to seven years. City officials stressed the development does not rely solely on one funding source and that staff would reapply for tax-credit rounds if needed.
Why it matters: Council members framed the plan as a major local step to address an undersupply of housing stock for teachers, nurses and other workforce residents. If built as currently designed, the project would add new sales-tax payers and utility customers while expanding housing choices for seniors and working households.
Next steps: Staff said it will return with bid documents and a refined financing plan once legal and contract details are finalized and the developer’s applications move through state competitive processes.
