Jasper Redevelopment Commission takes step towards Residential TIF for North Ridge subdivision

ByMatthew Crane Reading Time: 3 minutes

The Jasper Redevelopment Commission approved the first step for the city’s first residential Tax Increment Financing (TIF) district for the proposed North Ridge subdivision during its regular meeting on Tuesday.

Here is a story from the previous meeting when this was discussed.

Jasper Redevelopment Commission considers Residential TIF for new housing development

Project Overview

Ruger Kerstiens of Kerstiens Custom Builders presented plans for the North Ridge subdivision:

  • 47 acres in total
  • 155 total living units planned comprised of four-unit villas and single-family homes
  • Initial phase: 28 villas and 12 single-family lots on the south end
  • Proposed starting price points: $230,000 for villas, $250,000 for homes

Kerstiens emphasized the project’s focus on providing much-needed “starter homes” in Jasper, addressing the current housing market gap.

Public Hearing

During the public hearing, residents raised questions about:

  • The timeline for construction, particularly regarding existing structures on the property
  • The specifics of the economic development area and its incorporation into Jasper
  • The nature of private investment in relation to the TIF
  • Reclaiming gravel from the right of way for the extension of the subdivision–Kerstiens told the homeowner it could be arranged.

Commission members and Kerstiens addressed these concerns, clarifying that the project timeline is tentatively set to begin in October, pending final approvals.

City Attorney Renee Kabrick explained that housing development was part of the city’s overall economic health. “Any future private investment in the city requires workers who require homes, so more homes result in our ability to attract private investment not only from a housing development perspective but also from a business and jobs perspective,” she said.

When one resident asked which taxes would be impacted by the project, Kabrick explained that only those in the defined area of the North Ridge Residential TIF district would be affected.

Commission Discussion

Commission member Laura Grammer had questions about the TIF proposal, including:

  • If this TIF were approved, every developer would come in to seek a similar consideration in the future.
  • The definition of “affordable housing” in relation to the project’s price points. Grammer said she spoke to three realtors and all agreed the top-end for a starter home was about $180,000 in the area.
  • Potential effects on existing home values in the area if the TIF is used to pay for infrastructure which in effect is used to lower the cost of the homes in the TIF district.

Kerstiens said that saving $20,000 on the cost of the lots based on the savings on the infrastructure wouldn’t likely have a large impact on actual home values.

He also said it would be very hard to build a new home for $180,000 in today’s market. “I’ve been mentioning starter homes, but I don’t want to get too fixed on that (term),” Kerstiens said. “There could be individuals that are downsizing.”

These could also be considered step-up homes that release lower cost homes onto the market as these families purchase a larger, new home in this subdivision.

“There is a large market this (development) is going to satisfy,” he added.

In regard to more developers approaching the board about a similar proposal, Commission President Andy Seger pointed out that this project was in an area that had not had a lot of interest for development. “If we were talking about an area where we had tons of development interest–there was a lot of competition–I’d probably say let’s let the free market do its job,” he said.

Vote and Next Steps

After discussion, the commission voted unanimously to approve the declaratory resolution for the residential TIF district. This approval is an early step in a multi-stage process that will involve:

  1. Plan Commission review during the Wednesday, Sept. 4 meeting.
  2. City Council consideration (multiple readings)
  3. Economic Development Commission review

The project is also pursuing other funding sources, including a Readi Grant 2.0, which is still under review.

This story was written with the assistance of AI.

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