Bill helps C.F. annex property on U.S. 20

Feb 22, 2010 — Waterloo-Cedar Falls Courier

Jon Ericson

Feb. 22, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- HUDSON -- A bill that may allow Cedar Falls to annex a piece of Hudson land and repay a portion of the property taxes to Hudson is moving its way through the Iowa Legislature.

Some Hudson landowners near U.S. Highway 20 have petitioned a state board to sever their properties from Hudson and join Cedar Falls. The land is prime for commercial development, and the petitioning landowners want Cedar Falls to make that happen.

The bill made it out of a House committee last week and a similar bill is in progress in the Senate. Doris Kelley, D-Waterloo, comes from a district that includes Hudson and part of Cedar Falls. She sponsored the bill and said it met with little resistance.

"It's a fair bill. It would allow smaller communities that don't have the ability to develop high-value properties to still get something out of it," Kelley said.

Two of the landowners approached Cedar Falls several years ago expressing interest in severing from Hudson and joining Cedar Falls.

About two years ago, Cedar Falls made a proposal to Hudson that if the property was severed from Hudson, Cedar Falls would develop the property and give back 10 percent of the property taxes to Hudson each year for the annexed property.

Three weeks ago, Cedar Falls sweetened its offer. It proposed annexing a portion of the property while agreeing not to annex any more land from Hudson for five years. Cedar Falls also offered to allow Hudson to tie in to water and sewer infrastructure to develop property east of the proposed annexation.

So far, Hudson has not responded to the offer.

Hudson has been exploring developing the area itself, with an eye toward creating a buffer between commercial development along Highway 20 and existing homes along Ranchero Road, the first east-west road south of the highway.

One of the things Cedar Falls has emphasized in negotiations is that financial risks in extending water and sewer services to the area would be high for Hudson, but much more manageable for Cedar Falls, as it could be paid off with revenues from the city's existing tax increment financing district in the industrial park.

Hudson's estimates range from $4.4 million to nearly $6 million to upgrade its sanitary sewer system and serve the area.

Elected officials in Hudson say the city has the bonding capacity to make the improvements, but they are still looking at the best way to do it and be fiscally responsible.

"It's prudent that we look at the opportunity and the risk," said Hudson City Council member Al Schneider.

While Hudson is looking at developing the land on its own, the council and mayor have not ruled out making a deal with Cedar Falls.

"I'd like to see us be able to work something out with Cedar Falls," said Mayor Bernie Jensen.

Newstex ID: KRTB-0150-42278494