Council approves five‑year extension for Prairie Ridge West TIF with county input on LMI funds

The Pella City Council voted to approve a five‑year extension agreement for the Prairie Ridge West urban renewal area that lets the developer capture incremental tax valuation for an additional five years.

City staff explained the extension would allow the developer to use new property tax revenue from roughly 90 planned homes to reimburse public infrastructure costs estimated at about $4.3 million over the next 15 years. Under state law the city must set aside a percentage of TIF revenues for low‑ and moderate‑income (LMI) housing; Marion County supervisors and the Pella Community School District asked for a role in how those LMI funds would be distributed.

Mike, a city staff member, told the council the county’s request was limited to “input” on distribution and that council approval and local rules still control spending. He said the city could satisfy the request through structured options such as an advisory committee including county and school representatives; any county input would be nonbinding and limited to this development. Council members pressed staff for clarity about what “input” would mean in practice and whether it could evolve into formal control; staff and legal counsel said the language would create only a consultative role and could be amended later if necessary.

Supporters said the addition formalizes a collaborative approach with Marion County; one council member cautioned that asking for input could be perceived as a step toward ceding jurisdiction. The council approved the agreement by voice vote.

Next steps: the extension will be implemented under the terms approved and city staff said they will return with any implementing details or committees if created.