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Council approves development agreement, 15-year TIF rebate for 35‑unit Epcon phase
Summary
Pella City Council approved a development agreement with Courtyards Landholding LLC for the first phase of the Epcon residential development—about 35 homes—authorizing a 15‑year tax‑increment financing rebate to reimburse up to roughly $2 million in public infrastructure costs and reserving about $600,000 of future increments for low‑ and moderate‑income housing.
Pella City Council voted to approve a development agreement with Courtyards Landholding LLC that will let the developer recover an estimated $2 million in public‑infrastructure costs through a 15‑year tax‑increment financing (TIF) arrangement.
Mike, a city staff presenter, said the agreement covers the first phase of the Epcon development, roughly 35 homes located near the future Five Field Extension Road. He said the homes will be marketed to people 55 and older but “will be available for anyone that wishes a home within this development.” Under the proposal the city would capture incremental property‑tax revenue from newly built homes and rebate a portion—staff estimated roughly 50% of the property taxes returned over time—as reimbursement to the developer.
The staff presentation included two financial details the council flagged: an approximate $2 million public‑infrastructure estimate for phase one and a required set‑aside of about $600,000 from future incremental revenue to support low‑ and moderate‑income housing. The agreement also anticipates a 15‑year TIF term to enable the reimbursement schedule.
Supporters said the project will add housing supply and help finance public improvements. After a public hearing and brief council discussion, the council adopted Resolution No. 6740 approving execution of the development agreement by roll‑call vote.
Why this matters: The agreement uses incremental property‑tax revenue to pay for infrastructure rather than up‑front city capital, and it reserves a dedicated portion of the rebate stream for affordable‑housing purposes. The council also took the first procedural steps to formalize the TIF area through an accompanying ordinance discussion later in the meeting.
What’s next: Ordinance No. 1043, introduced later in the meeting, provides the municipal authorization to capture incremental taxes within the designated Epcon urban‑renewal area; the ordinance was read and progressed as part of the council’s legislative process.
