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Council amends rezoning, approves support for 48-unit Sherwood multifamily project to meet tax-credit deadline

Ottumwa City Council · March 3, 2026
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Summary

Council amended a developer’s rezoning request from R1→R5 to R4 (medium density), approved resolution supporting a related low-income housing tax credit application, and waived remaining readings to meet a March 11 application deadline for a 48-unit, three-story project with elevator, on-site management and 96 parking stalls.

Community development director Amal presented a rezoning request for roughly four acres adjacent to Sherwood Drive so a developer could build multi-family housing. The developer initially requested R5 (high density); Amal and the Planning and Zoning Commission recommended R4 (medium density) to align the change with the future land use plan. “Staff and the Planning and Zoning Commission are recommending R4 instead,” Amal said.

Developer Megan Carr of Sand Development described plans for a three-story, 48-unit building with one-, two- and three-bedroom units, an on-site management office, community room, elevator and 96 parking stalls. Carr said the project would construct a private drive from Sherwood into the parking area and extend sewer and water service as part of the development; she said the developer would attempt to hire local subcontractors and staff locally where practical.

Neighbors raised concerns about sewer capacity and traffic. Resident Beverly Olson said, “The sewer system for our needs now is not adequate,” and asked whether the project would route flows toward Overman or connect to existing lines. Amal and the developer said utility extensions for the project would come off Quincy and would not connect to Overman or Castlanca, and access would be from Sherwood/Quincy.

Because the rezoning was tied to an imminent low-income housing tax credit application, council amended the published R5 request to R4 and waived second and third readings so final action could be effective before the application deadline. Council also adopted a resolution (Resolution 38-2026) supporting the tax credit application filed by Landover Corporation or the named applicant (the applicant requested the record be updated to Tamah Housing Group LLC). The resolution passed on recorded roll call votes.

Next steps: staff will process final documentation for the rezoning and the developer will proceed with the LIHTC application; if credits are awarded, the project will return to council for any required agreements and building permits.