RIVERDALE, Iowa (KWQC) – The City of Riverdale and its residents are not seeing eye-eye on a potential development agreement.
The city wants to use a TIF to help develop the Welch Farm Area, but residents say property taxes should not go to private developers.
Woods Construction wants to build at least 100 homes in the Welch Farm Area which is bordered by Deer Springs Circle, Manor Drives and Field Crest Road. But the company wants to be reimbursed some of the costs.
At a city council meeting on Tuesday night, residents spoke out against passing a TIF ordinance. According to the city, the TIF would apply to the property taxes generated on Welch site by the newly built homes.
In the original draft agreement, the TIF would help reimburse the developer $4.6 million for the estimated $8 million dollar project.
But after public outcry, the city says it is reconsidering the proposed agreement.
Instead of the $4.6 million reimbursements, the city is looking at a $1.5 million reimbursement. The city feels this is fair saying it is the estimated cost to repair the road leading up to the property, and would also go towards the “Arconic” intersection adding a stoplight in the area.
Members of the city council stated they feel the project as a whole is necessary.
The Welch property is on the border of Bettendorf and Riverdale. The Welch family has the option to annex the property to Bettendorf.
A new agreement will be drawn up with the city looking at a $1.5 million reimbursement. A public hearing on the matter will be held at city hall on September 26 at 7 p.m.
Tuesday night the city also decided to create a ballot allowing residents to cast a vote on the issue. There is not a date set for when residents will get their chance to weigh in, but it should be noted, it has no binding obligations. The city council will still be the deciding authority on how the TIF will be designated.