The city of Plattsmouth is helping to pave the way for a new housing development to be constructed within the city limits.
At its July 6 meeting, council approved the final replat for Meadow Heights Estates subdivision, which includes Lots 1 through 60 and outlots “A” and “B” between 11th and 13th Avenues east of south Fourth Street.
The project developer is Melvin Sudbeck of Sudbeck Construction in Omaha.
According to a memo sent from City Engineer Steven Perry to City Administrator Erv Portis, Building and Zoning Administrator Kevin Larson, Public Works Director Gary Hellwig and civil engineer Doug Kellner, the subdivision “is planned to be constructed in four phases.”
Phase 1 entails developing five housing units on five different lots. They will mark the first five of 60 units to be constructed. The final assessed value of each home and lot it sits upon is estimated at $210,000.
“Per the contract, the developer must make its best effort to assure minimum assessed valuation of $210,000, real estate and house combined. That valuation exceeds most homes in the immediate area,” Portis said.
Phase 2 consists of installing infrastructure for 20 single-family housing structures. Phase 3 is 18 additional single family lots and Phase 4 is 17 additional single family lots.
Funding for the development will be, in part, from a $2.3-million Tax Increment Revenue Bond. As stipulated in the bond resolution, neither the city of Plattsmouth nor the state of Nebraska has any liability for paying off the bond in the case of a default.
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Project eligible costs are site acquisition, $135,000; redevelopment fees, $150,000; site redevelopment not including work within right of way or public easements, $660,000; public improvements including streets, water, sewer and storm sewer, $1,738,000.
“The bond is only $2,240,000. Even if the project costs exceed $2,240,000 the bond is only that amount. Moreover, the agreement required the developer to purchase the bond. The city has zero liability for bond debt service. If the project does not succeed, developer and its underwriters assume all the risks,” Portis said.
To date, Sudbeck has paid feeds exceeding $156,000 including water and sewer impact fees.
The development would be a step toward filling in a gap for housing in the middle and upper-income ranges.
A recent survey identified the lack of housing and the updated Plattsmouth Comprehensive Plan addresses the need to address the shortage.
The plan identifies a shortage of homes in the middle and upper-middle income ranges. “On the other hand, a glut of homes valued between $25,000 and $50,000 exists. Homes in this bracket, discourage middle income families from ‘moving-up’ in the housing market due to concerns on whether the home would be able to sell.”
The beginning of the project is on the near horizon. Sudbeck hopes to start on Phase I late this summer.