Cedar Rapids council approves development across from the Ellis Park Golf Course

The City Council last night approved a new housing development along Zika Avenue NW across from the Ellis Park Golf Course and indicated they want to subsidize it.

The city could spend up to $2.35 million to help developer Darryl High build streets and 81 homes at the site, which he calls Sugar Creek.

Several residents of that neighborhood criticized the proposal in the meeting's public comment period. They argued the city doesn't have money for it and their neighborhood already has water runoff problems that could be exacerbated by the development.

Ultimately, though, the council voted 5-4 to approve the project and directed staff to figure out how to fund the subsidy. One idea is to create a special tax increment financing district that applies to residential property. Another is to use Community Development Block Grant money.

While council members Chuck Wieneke and Tom Podzimek argued against the project, and Justin Shields and Mayor Kay Halloran also voted against it, other members argued the city is in dire need of affordable housing to replace what was lost in the flood. City officials estimate Cedar Rapids needs 323 more owner-occupied homes and 519 more rental units.

High, president/CEO of High Development Corp. of Cedar Rapids, is seeking $31,000 in subsidy per property. The council discussed offering $17,500 for each homebuyer and $11,000 per home to High.

Other developers involved in the matter are T.J. Berthel Enterprises Development, which owns the land, and Kyle Skogman, president of Skogman Homes, who plans to build some of the 81 homes.

By approving the development, the council is going against the City Planning Commission, which on a 4-3 vote rejected the site plan for the development because of concerns about water runoff and the number of homes on the site. The commission is a recommending body.