The Superior Express -

It was obvious Monday evening when the Superior City Council met that members of the council and the mayor disagree over how to provide additional housing within the community.

An application submitted to the Superior Community Redevelopment Authority asking tax increment financing to assist with the proposed Montana Meadows second addition was on the agenda for discussion.

The project's architect, Debra Hansen, had drawn the plans for 5 homes with walk-out basements to be constructed on 1.4 acres of land currently owned by Saathoff Properties Management. It is proposed each of the homes will have 1,340 square feet with two bedrooms, two baths, double garage and unfinished walk-out basement. Taking into consideration current building costs, it is anticipated the finished homes may sell for $260,000.

Unlike some housing projects undertaken in recent years, the potential buyers will not have to meet income or age requirements.

If the tax increment financing is approved (TIF), the property owners will pay normal real estate taxes on the property but for the first 15 years the tax will be captured and used to repay eligible development costs.

TIF is a method of financing real estate development costs on the increased valuation of a property created by the development project to assist in funding up front the public improvement and site costs of the project.

It was estimated the five villa housing project would pay $26,435 in real estate taxes each year. Currently the taxes on the land which is being used for pasture total $38 per year. Thus, over the 15 year TIF project life, the additional tax money collected would total $395,955.

Of this new tax money, the City of Superior would retain $79,191 which could be used for a second housing project.

The TIF funds may not be used for actual construction costs or a developer's fee.

If the project moves forward, construction is expected to start in 2022 with completion about 18 months later.

Mayor Chris Peterson voiced a number of objections which were centered around the community's need for lower cost, work force housing and skepticism that the proposed housing could be sold.

Deb Hansen, Nate Saathoff and Scott Boyles addressed the concerns of the mayor and council.

Boyles said, he was skeptical at first but his opinion has changed. He now believes Superior has a market for the proposed houses, that they will attract people to move back to Superior and some may be sold to current residents which will put lower priced houses on the market which may be suitable for the work force.

Hansen told of clustered work force housing studies which had been done.

She said a site on North Central Street had been identified with the potential for 7 or 8 homes of 1,000 square feet each. The owner of the property has shown some interest in potentially allowing the construction of duplexes on the property.

A potential site was identified on North Park but the land owner is not willing to sell. Like wise with a site on 15th Street. There is interest in constructing age restricted housing near the present Kingswood Court.

Saathoff said his construction company was interested in doing the concrete work but was not interested in doing the construction of the actual houses.He said he had talked with Wayne Peterson, Mike Gay and Derrick Hiatt and the three construction company owners had indicated an interest in helping to build the proposed houses.

Peterson objected saying the area did not have enough contractors and the existing contractors should devote their time to building lower priced houses suitable for sale to members of the work force. Peterson also said the city would be setting a precident if it allowed the TIF funding. Previously the city has required the formation of a paving district and levied taxes to recover the city's share of the development costs while allowing other taxing districts to collect tax on the improved property.

With the TIF plan those districts would not receive tax income until after 15 years.

As the discussion wound down, Sandra Foote, a member of the council, made the motion to direct the city staff to continue with planning the implementation of the TIF plan. Steve Fox seconded the motion and it passed unanimously.

Similar TIF financing has been used on other projects including the development of the Superior East Elevator and Kingswood Court.

In another action, the council approved vacating the alley bounded by Second, National, Third and Colorado streets to permit the construction of a new retail store. The city utility department has already begun relocating the electric line which was located in the alley.

The successful completion of Isaiah Tippin's initial six-month probation period was noted. He is employed with the police department.

Though the police department does not currently have body cameras, a policy permitting the department to use such cameras was approved. The cameras may be included in a future grant request.

Two properties were declared public nuisances. The owners of the properties at 826 Central and 618 East Second must either comply with city ordinances or the city will clean the property and attach liens to the properties until the bills are paid.

The volunteer fire department roster was brought to 34 with the membership approval of Jarett Roesti and Matt Majors.