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Pella council adopts TIF plan to support 47‑lot Fountain Hills subdivision
Summary
Council adopted Ordinance 1079 to create a tax‑increment financing area for phase four of the Fountain Hills development, enabling the city to rebate incremental property taxes to reimburse the developer for roughly $2.4 million in street infrastructure for 47 lots.
The Pella City Council on Monday adopted Ordinance 1079, establishing a tax‑increment financing (TIF) area for phase four of the Fountain Hills development, a proposed 47‑lot residential subdivision.
City staff explained the ordinance is the final legislative step to create the formal TIF area. The developer is expected to install roughly $2.4 million in streets on the subdivision that will be dedicated to the city once complete. Under the TIF mechanism described by staff, the city will freeze the taxing jurisdictions’ base revenues and rebate incremental property taxes generated by the new development to reimburse the developer for public‑infrastructure investment.
Staff emphasized the collection period for the urban renewal area is limited to 10 years unless an extension is approved; Marian County has approved a five‑year extension and the Pella Community School District will consider the extension in its December meeting. ‘‘This is the formal mechanism on how we are going to be able to collect incremental property taxes,’’ staff said.
Council held the required readings and voted to adopt the ordinance on Monday. Staff noted the site currently contains installed streets but largely vacant lots; development of the 47 lots would create new residential property tax revenue to support the reimbursement plan.
Next steps include any required intergovernmental approvals for the extension period and the developer’s continued work to build out the new lots.
