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Pella council adopts Fox Ridge urban renewal ordinance to capture incremental taxes for development
Summary
Council adopted Ordinance 1077 (third reading) establishing the Fox Ridge urban renewal district to capture incremental property tax revenue to reimburse the developer for public infrastructure and direct about one‑third of increment to the city's low/moderate‑income housing fund; the plan is conditional on county and school district extensions of the plan's term.
The Pella City Council adopted Ordinance 1077 on third reading to create the Fox Ridge urban renewal district and allow the city to capture incremental property taxes generated by new homes in the development.
Staff explained the ordinance would collect tax increment to reimburse the developer for approximately $950,000 in public infrastructure costs while directing roughly 33% of the incremental revenue to the city's low and moderate income housing fund. Mike told the council the development includes two‑family and multifamily homes and that, under the development agreement, the capture is conditional on Marion County and the local school district agreeing to a five‑year extension of the urban renewal term (from 10 to 15 years); those entities are tentatively scheduled to consider the extension in November.
Council moved, voted and adopted the ordinance that evening. Staff said the capture mechanism is intended to fund infrastructure reimbursement while also supporting housing funds; the development agreement and final collection will proceed only after the county and school district actions occur as required by the agreement.
