CLEAR LAKE — The City Council in Clear Lake last night approved a resolution authorizing an economic development grant for the South Shore Estates Subdivision housing development project.
The seven-and-a-half acre parcel of property located at 2605 South Shore Drive, just north of Clear Lake State Park, was rezoned to medium-density single-family residential to allow for the development of a mix of single-family and twin homes.
City Administrator Scott Flory says the development agreement between the city and the developer calls for the city pledging an infrastructure offset contribution of $400,000 toward the project, with half of that grant agreement being paid following the completion of the underground infrastructure. “By that we’re talking about the water, the sewer, the storm sewer, the electric utilities, gas utilities, all those kind of things. Once those are installed and inspected by the city, we would pay upon request a reimbursement of up to $200,000, which once again is 50% of our grant agreement with the developer. Then when the project is completely done, so that would be all the above-grade improvements, so the grading and the rock base and the paving and all those kind of things, the street lighting, then the developer would file a request with the city, and once we approve and accept the final plat and the improvements, we would pay that final installment.”
Flory says the council previously approved a five-year property tax abatement program for the development. “Of course that works to the benefit of the eventual homeowner. It’s on the first abatement on the first $75,000 of assessed valuation on the property, so generally comes to about $1100-1200 a year for five years.”
The estimated value of the improvements to the subdivision is over $1.43 million. The council unanimously approved the development agreement last night.