This is the site where Kading Properties of Urbandale proposes to build 218 new apartment units on Webster City's southwest side. Buildings in the background are, from left, the Peterson Apartments at 1720 Lynx Avenue, Windsor Manor Assisted Living Community, and Westside Villas at 1515 Wall Street. Wall Street itself runs along the extreme right of the photo.

Urbandale-based developer Kading Properties received approval from the City Council of Webster City Monday to build a 218-unit apartment community north of Wall Street on the city’s far southwest side.

The majority of the apartments will be built in single-story four-plex and six-plex buildings; there will be a few two-story six-plexes, and 24 semi-detached units.

If fully built, Kading would invest $28 million in the project, which will cover 26 acres.

Chase Hauschilt, development specialist for Kading, told the City Council “we have the land under contract now.”

The apartment complex isn’t a new idea. Kading first approached the city council with a proposal to develop apartments on the same land on October 19, 2020. The council referred the plans to the city’s Planning & Zoning Commission, which approved it, with the understanding Kading would alter its plans to meet the following four conditions:

— First, storm sewers serving the new development should discharge separately to the south rather than through two small ponds owned by residents of 1300 Wall Street and 2109 Beach Street.

— Second, Kading must deed the half of Wall Street it owns to the City of Webster City on a fee simple basis. Fee simple ownership means the street would be owned outright by the city, with no restrictions or limitations.

— Third, to improve movement of automobile traffic, Planning & Zoning recommended the city extend Lynx Avenue to provide a north-south connection between Wall and Locust streets.

— Finally, it suggested land be reserved to extend Locust Street to serve the new complex, thereby providing more access and taking some of the expected traffic off Wall Street.

Planning & Zoning held a public hearing on the project December 18, 2024. As there were no objections to the project from the public, it recommended the City Council approve the project.

Although not spelled out in detail in the council memorandum, the city would have to extend both Lynx Avenue and Wall Street, and related utilities to support the development. These improvements would, over time, pay the city back with higher utility and sales tax revenues.

A housing study completed by the city in 2021 projected a need for 235 rental and owner-owned units through 2030. If all 218 units of the Kading complex are built, it would represent a large increase in the number of rentals in Webster City.

In her resolution memorandum to the City Council concerning the project, Development Director Ariel Bertran said: “This development addresses a significant portion of the city’s housing needs, particularly workforce housing, as outlined in the Comprehensive Plan and Housing Study.”

Developers often use the term “workforce housing” in place of “middle-income” or “market rate.”

No mention is made as to affordability of the new apartments, but a quick check of its website at press time shows Kading’s 1,008-square-foot, three bedroom, one bath, one-car attached garage units renting for $920 in Perry; $995 in Storm Lake; $1,045 in Boone; and $1,150 on Des Moines’ east side.

The Webster City development will include similar units.

Full lease terms aren’t shown on the website, but one month’s rent security deposit is required at time of signing. There’s also a $45 application fee.

Kading calls its units townhomes rather than apartments. Seeking to give renters the feel of a traditional, detached home, Kading’s designs in other Iowa cities include private entrances, a small yard, and a door leading from an attached garage directly into the unit. Most also include hookups for a washer and dryer in a small, dedicated laundry room.

Kading owns 26 developments in cities and towns across central Iowa.

Presently, it has new housing complexes under construction in Boone, Corydon, Knoxville and Pleasant Hill. It has been in business since 1976, and is family-owned.

Kading plans to build out its Webster City development over three years, beginning in fall 2025 with completion of the entire project by fall 2028.

Pat Chambers, of Webster City, questioned the project during Monday’s council meeting.

“I’d like to know a little more about this project before we get going,” he said.

He suggested a performance bond might be in order to ensure the developers complete the project as planned. He also referenced the failure of developers to complete projects on the city’s southeast side that would have seen Fair Meadow Drive completed as a through street a few years ago.

“As things stand today, if Edgewood Drive were closed for any reason, many residents would have no alternative way to get in or out of their neighborhoods,” Chambers said.

These and other questions about the development can be answered after two required public hearings; the first at 6:05 p.m. on January 20 will outline details of a development agreement between the city and Kading Properties; the second, to be held at 6:05 p.m. on February 3 will update Webster City’s Urban Renewal Plan and open the way for the use of TIF (Tax Increment Financing) financing for the project.

John Harrenstein, Webster City’s city manager, talked about the prospect of new housing in Webster City.

“It’s no surprise to residents or employers in Webster City there’s a shortage of available housing for existing and new residents. If you’re not growing as a city, you’re dying.

“There is no standing still for cities. Webster City experienced population loss in the last 10 years and must reverse that trajectory to ensure the community remains vibrant. The Kading development will positively affect this, and hopefully stabilize the population forecast for the next census.”