The Clearwater City Council voted Monday to amend the city’s residential growth incentive program by increasing the number of eligible homes.

 

Last month, the council tabled the vote until City Attorney Dave Lenhardt could do research and give an opinion whether members of the city council were eligible to use the program, which reimburses up to $10,000 for the first three new homes built each year. 

 

A letter from Lenhardt stated it was not a conflict of interest for any member of the council to use the program. 

 

One sentence reads: “In my opinion, merely being the owner of land upon which a house could be built that qualifies for the benefits under an established Residential Growth Incentive Program (RGIP) would not disqualify a council member from voting upon the resolution creating the RGIP and then later applying for benefits under the program, since the program potentially benefits all landowners in the City of Clearwater.”

 

Once the council cleared up the conflict of interest question, they discussed the merits of offering $10,000.

 

Administrator Kevin Kress suggested amending the program to cover just water and sewer access charges (WAC & SAC), instead of including other costs, like a second water meter.

 

He also questioned whether program should continue using the $160,000 minimum home value for eligibility.

 

Councilman Chris Ritzer said he understood the intent was to prevent developers from building less expensive speculation (spec) homes.

 

“I agree with Mr. Ritzer,” said Councilman Mike Ranum. “I like the minimum of $160,000.”

 

Mayor Pete Edmonson said the home value was calculated so property taxes would pay the city back in approximately five years.

 

The other point by Kress, lowering the $10,000 reimbursement, would allow the city to offer the program to four new homeowners instead of three. 

 

When the program began in 2012, WAC & SAC was close to $9,700. The program also offered to cover the cost of a second water meter, valued at about $300, which s where the $10,000 figure came from.

 

But since that time, WAC & SAC has decreased to just over $7,500. Kress said if the council dropped all reimbursements except WAC & SAC, the city could offer the program to four homeowners at about the same cost.

 

“I like doing just the WAC & SAC just for the mere fact we can do one more,” said Ranum. “And I think we’re going to start to see more building.”

 

Walnut Street resident Dan Niehoff said offering to pay for a second water meter was unfair to current residents who wanted one. 

 

“Where does the benefit come in for the resident that lives here already if you’re going to give somebody who’s building a house a second water meter?” he asked. “If you’re going to give a discount, wouldn’t you need to give a discount to the resident who already lives here?”

 

“Good question,” said Ranum.

 

Niehoff said paying for WAC & SAC would be a benefit for everyone because it encourages more homes, which would mean more people sharing water and sewer costs.

 

Kress said the current WAC & SAC is $7,582.71. If the council offered the program to a fourth home builder, the total cost would be $30,330.84, just a bit higher than the $30,000 currently allocated for the program.

 

The council voted unanimously to amend the program to cover just WAC & SAC and make four homes eligible.

 

In other action the council:

 

•Approved the purchase of a stump grinder from Fairchild Equipment at a cost of $5,254.50;

 

• Accepted a $50 donation from Stephen and Jeanne Dirksen to the Clearwater Fire Dept.;

 

• Approved a revised investment policy;

 

• Cancelled the March 21 council meeting.