Council approves TIF-backed development agreement for 19-home Penn Landing workforce subdivision

West Burlington’s City Council on Monday approved a development agreement with Big Hand Pepper LLC that uses annual-appropriation tax-increment financing (TIF) to support infrastructure and other project costs for a 19-home workforce housing subdivision called Penn Landing.

The council voted after a public hearing and support from local housing advocates. Jeff Burkhart, representing the Greater Burlington Partnership’s housing committee, told the council the project is “critical to the business community and the greater community to have housing available, to bring new families in.”

The agreement pledges certain tax increment revenues to pay development-related infrastructure costs, covers city legal fees associated with bond counsel, and sets conditions including property acquisition, a minimum investment commitment and subsequent detailed site plans. City staff described the TIF commitment as an annual appropriation rather than an unlimited pledge.

Brent, a representative working with Merge on the project, said the developer plans to begin road construction as soon as spring (likely April) and expects the 19-house build to take about one to two years. He said the homes will be stick-built off site through the Homes for Iowa program, delivered to prepared foundations, and are intended to sell in “the high mid to upper 200s.” Brent said the houses will be ranch-style with detached garages and that designs would accommodate mobility needs, though basements are generally expected to house utilities rather than slab foundations.

Council members asked about timing, home types, accessibility and utilities. After discussion the council called the roll and approved the resolution authorizing the development agreement; the motion carried. The council separately approved the preliminary plat and preliminary construction plans for Penn Landing in a subsequent roll-call vote.

The developer and city said next steps include finalizing the detailed site plan after council approval and advancing infrastructure work under the TIF agreement. The agreement notes that annual appropriation is required each year as part of the city budget process and that the city’s obligations are limited to available appropriated funds.

The council closed the public hearing, approved the development agreement and preliminary plat, and directed staff to continue coordination with the developer on final plans and infrastructure timing.