New housing permits in Clear Lake at record level

by Marianne Gasaway

In a year in which economic trends have tended to be headed downward, Clear Lake is bucking the trend.  The community has already far surpassed the number of new single family housing construction permits it typically issues.

“The pandemic has not dampened the desire to want to live in Clear Lake.  I think primarily this is an attractive place to live and raise a family.  Secondly, interest rates are at a historic low, so it is a good time to build or re-invest in property in Clear Lake,” said City Administrator Scott Flory.

“Clear Lake is a special place — it’s the quality of life— a Norman Rockwell style of life, and an active Chamber that draws people here,” said Tim Stenberg, who began developing subdivisions in Clear Lake in 2003.  “In the early 2000s we realized we needed to lure young people to Clear Lake with housing options that would work for them.”

Stenberg is currently filling lots in his Sunset Ridge Residential Subdivision on the north side of Clear Lake.  The first phase of the area was opened in August 2015 with 15 building lots.  With just three lots remaining, an 11-lot second phase has been approved by the city.  The area was sparked by an adjacent Stenberg development known as Pine Brooke.

“Several Pine Brooke owners loved the area, with its proximity to Highway 18, groceries and the Surf District.  Now they are ready for the oversize lots at Sunset Ridge,” he added.

Stenberg has also developed Venetian Estates, Redstone and Fredriksen’s on First.

The reimagined One Vision campus has also created a variety of new housing options on the north side of Clear Lake.  A 48-unit independent senior living apartment building, known as TimberCrest at Glen Oaks, was constructed in 2020.  Phase one of the Glen Oaks campus redevelopment project also included converting two One Vision cottages into townhomes.

As is often the case in development projects, the City of Clear Lake, played a part in helping One Vision and others make their housing plans a reality.

The City often supplies infrastructure support for developments, such as extending water and sanitary sewer lines.   Flory explained the city acted as a conduit borrower for One Vision, to help the organization take advantage of tax-exempt financing.  One Vision’s $15 million projects represented just over half of the city’s $29,111,353 (total value) of the 370 building permits issued by the City in 2018. In addition to residential and commercial permits, the number includes roofing, garage, siding, accessory building, miscellaneous (decks, sheds, etc), mechanical and foundation work.

The south side of Clear Lake has also seen significant growth in recent years, primarily within the Stone Cliff development.  Phase one of the area featured 23 building lots; phase two had 19 lots and phase three, 23.

“This year we have 10 houses under construction and with only three lots left in phase three, we are looking at phase four,” said realtor/developer Dick Hayes, of Lake Iowa Realty.  “It’s a great family area, with a good mix of younger and older families, and in addition to it being a beautiful area, it has easy access to Mason City.”

Hayes has been instrumental in developing Clear Lake properties since the 1980s.  His projects have included expansions on North 8th Street, Buddy Holly Place and Oakwood Ranch on south shore.

“Clear Lake is a place people want to live and can afford to build,” said Hayes.  “And now is a good time to work with banks for extremely favorable financing.”

In recent years Clear Lake has also become a popular development spot for companies which utilize tax development credits from the state.  Recently, the Iowa Economic Development Authority (IEDA) approved a Clear Lake housing project in its announcement of awards totaling almost $10 million.   IEDA’s Workforce Housing Tax Credit program provides tax benefits to provide housing in Iowa communities, focusing primarily on those projects using abandoned,

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empty or dilapidated properties.  The Clear Lake project received a $195,600 Workforce Housing Tax Credit.

In May 2018 the Clear Lake City Council gave its enthusiastic approval to the idea of accepting proposals for the sale and redevelopment of city-owned property at 100 S. 15th St.  The metal cold-storage building, which City Administrator Scott Flory called “an eyesore for a great many years,” was advertised  “as-is.”  The property included three 50-foot lots and one 40-foot lot located between Main Avenue and 2nd Avenue South; each lot is 120-feet deep.  City leaders stressed they were looking at the long-term impact a project on the site could make on the community, both in terms of enhancing the tax base and addressing a lack of housing opportunities in the city.

Echo Development Group, based in Cedar Falls, Iowa purchased the property for $1, with developers Brent Dahlstrom and Jim Sulentic planning to construct eight multi-family market rate rental apartments with an estimated new taxable value in excess of $1 million.   The City offered five-year tax-increment financing at 100 percent tax abatement.  The project is comprised of two, four-unit buildings. The buildings are three stories in height with a two-stall garage on the main level.  Each unit will have three bedrooms.

The same developers purchased the former Sunset School in 2018 (closing on the property was delayed until an addition to Clear Creek Elementary School was completed in 2019) and are in the planning stages for residential development there.

“While there is no specific plan yet proposed for the property, generally the developer has indicated his intention would be to develop a multi-family housing project in 2021,” Flory explained to the Council recently.  The Council is currently in the process of finalizing an ordinance designating an Urban Revitalization District to accommodate the development.

In addition to the previously mentioned subdivisions, Clear Lake has also expanded its housing opportunities with a solar development by Equinox, and smaller sites such as the Gated Wye Subdivision on East Main Avenue featuring four half-acre lots.

With residential development at a record level, the City’s only building official, Mike Ritter, is a busy man.  He is in charge of making sure projects work through the necessary steps, including Board of Adjustment and Planning and zoning approval, reviewing plans to be sure proposed projects follow building codes and set back requirements.  He also reviews plans with the city’s consulting engineer and public works department leader and communicates the city’s wishes.

“Unless you’re changing, you’re not growing,” said Ritter.  “We consistently ask ourselves ‘what do we need to provide opportunities for people?”

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