A local developer’s request for $360,000 in Tax Increment Financing from the City of Atlantic could result in as much as $70,000 in tax revenue once the nearly $4-million dollar housing project is completed and the homes are sold. Don Sonntag appeared before the City Council Wednesday night to ask for the TIF, which the City’s Personnel and Finance Committee has recommended the Council approve. The matter was discussed, but no action was taken during the Council’s session. Instead, it’s expected to be placed on their agenda at a later date.
The TIF application is for the Southern Heights View Development Project, which would be located between East 19th and East 22nd Streets. Councilperson Kathy Somers, who is on the P&F Committee, said there was some concern brought up during the Committee’s meeting Monday evening, about congestion along 19th Street near two local residential care facilities that would be created as the project is being brought to fruition. The Committee decided it would recommend to the Council 19th Street be widened to eliminate any potential congestion.
Sonntag said the 28 unit complex has an approximate valuation of $3.5-to 4-million. 16 of the units would be located along 19th Street, with 12 additional units near 22nd. He said it will be a combination of rentals and condominiums, some without basements, some with walk-out basements. In addition, Sonntag said he would be willing to commit to building one or two regular homes on property located along Olive Street in the same area, that’s owned by his son.
Sonntag reiterated the need for more housing in Atlantic, in pitching the project to the Council. He said there are less than one-half dozen lots available in town for someone wanting to build a 250-to 300 thousand dollar home. Sonntag said there are people who are looking for those size lots, and if they aren’t available, will look toward Harlan and Carroll to build their homes.
Sonntag says if the TIF is approved, the $360,000 – payable by the City in three $120,000 installments – will be used to help with infrastructure improvements and other matters associated with the development project, to help make the final costs affordable to potential buyers of the properties.