(Radio Iowa) – A nearly 19 MILLION dollar housing project in Spirit Lake will be built a few blocks from a manufacturing facility that employs 750. The Polaris plant in Spirit Lake produces Victory motorcycles and Polaris RANGER utility vehicles. Robert Smith of Talon Development says when the project is finished, there will be 126 rental units. “Phase one will have the apartments, with 62 units. We’re going to have within phase two we’re going to have town homes of three bedrooms, two-and-a-half bath and parking,” he says. “We’re also going to have within phase two…a community center and a fitness center.”

Smith says Talon Development built similar housing complexes in 27 other communities. He calls it market rate workforce housing. “Rather than having people drive in for half an hour, they can live and work in right in the community they’re in,” Smith says. “That’s the niche we work in. The smaller communities need to have people close by.” Spirit Lake officials say local businesses have said expansion plans are dependent on the construction of affordable housing for prospective employees.

Spirit Lake City Hall (photo by Spencer Radio Group/Saga Communications)

Spirit Lake City Administrator Gregg Owen says the developers are applying to the Iowa Economic Development Authority for a Workforce Housing Tax Credit.  “They need to see a local match. The city’s local match will be a combination of a $500,000 economic development grant and a tax abatement.”

The estimated value of that local tax abatement is about 394-thousand dollars. The developers say local investors and financing have already been secured. If the project is approved for state tax incentives, Talon Development could close on the property in September and begin construction before winter hits.