Jasper Incentivizes Workforce Housing Projects

City attorney Renee Kabrick told the Commission that Resolution EDC 2024-2 regarding the Northridge Estates Residential Housing Economic Development Area has already gone through the Redevelopment Commission and the Plan Commission. She noted that neighboring property owners had a chance to provide input and ask questions at the public hearing, which they did, and there did not appear to be any opposition. Ruger Kerstiens of Kerstiens Homes then appeared before the Commission to provide an overview of the project. 

Kerstiens said that the Northridge Estates will be comprised of 155 housing units in approximate 80 acres. 28 of those will be owner-occupied villas. Phase 1 would begin with the construction of the villas and 12 single family lots . The developer estimates approximately $5 million in infrastructure investment, which they hope to finance through a residential TIF. The goal would be to reimburse the builder 25% of those infrastructure expenses over time through the taxes generated from the development. Kerstiens said that the TIF is a lot less expensive than the bonding process, and will be a more efficient use of the funds. They have also applied for Ready Funds, which would be a grant that has to be matched locally and is only to be spent for public infrastructure investment. The goal is to reduce overall lot costs for owners by ensuring that less infrastructure costs have to be passed on to the end user. 

Kubrick said that before advancing to the Council, it is the responsibility of the Economic Development Commission to confirm that it will support the economic initiatives of the city, specifically providing badly needed workforce housing. The Commission must also certify that it will not have an adverse effect on other kinds of housing and industry currently in place, and that the agreement will be a benefit to the city. After reviewing the financing agreement and the conditional expenditure agreement, the Commission did approve the resolution. 

Kerstiens also approached the Commission regarding the developer’s Tax Phase-In Application for Park Place Estates One LLC. There will be 150 apartments total upon the project’s completion. The upcoming Phase 3 will include 12 town home units, 28 two-bedroom units. These will be the same building type that was completed in Phase 2. The total investment in Phase 3 is $3.1 million. The Commission reviewed the application and awarded 68 total points for property tax abatement pursuant to Indiana code. That results in a 7-year abatement for Phase 3 of the project to support the workforce housing goal of the development.

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- Drew Hasselbring