Land development projects took a step closer to reality at the Ames City Council meeting Tuesday night as the council voted unanimously to rezone land. The council also approved a housing subdivision plan and discussed negotiations with developers.

Council members approved the first reading of a proposed development plan for Doubtless Subdivision. Ames Director of Planning and Housing Brian O’Connell recommended the council rezone the land from agricultural to a mix of residential and commercial.

The council must approve the proposal two more times before it goes into effect.

The subdivision is 137 acres of land west of South Dakota Avenue and north of U.S. Highway 30. O’Connell said developers intend to construct a variety of homes and commercial buildings, with tentative plans for a school in the future.

Also approved was the extension of Miller Avenue and Mortensen Road into the Doubtless Subdivision. The extension, O’Connell said, would be paid for by the city.

Paul Popelka, of Engineering Plus, Inc., an Ames engineering firm involved with the Doubtless project, said he believes “this is a good mix of land use” and will set a good example for future land development.

“The funding is important to the project,” Popelka said and estimated constructing a two-lane extension to Mortensen Road would cost $500,000.

Councilman Ted Tedesco agreed with O’Connell’s recommendation. “This council needs to look at the future development of the city,” he said. But he expressed concern over the debt to Ames in the future.

Councilman John Parks also sided with O’Connell. “The motivation is to attract growth to the development area.”

Somerset Village proposal

In addition, the council discussed negotiations with developers over the proposed Somerset Village, a planned housing subdivision north of 24th Street. The developers requested the city to grant a $1.07 million tax subsidy for construction costs.

City Manager Steve Schainker said the city would be responsible for a four-lane extension of Stange Road that would head north into the subdivision area.

“The developers are very leery of the marketability of the village. They hope the tax subsidy will jump-start interest in it,” Schainker said.

“The village would be a benefit to the community,” Schainker said, adding that other similar villages around the country have been financed without tax subsidies.

“We just do not believe we can recommend … the subsidy,” Schainker said. “I do not want to force anybody into a development that might not be profitable.”

“I think that the [subsidy] can be paid off in five years,” said Dean Hunziker, of Hunziker and Associates, one of the developers of the village.

Hunziker also said the subsidy was “necessary” to the project, as it would allow the developers to keep construction costs competitive in comparison to other Ames subdivisions.

Hunziker said the council’s discussion “really questions our commitment to the village. We have been in this project for 24 months, and I think that shows commitment.”

Parks said the council has to think of the developers’ concerns, as “they are the ones taking the financial risk.”

In other business

* The council approved an agreement with Kirkham Michael and Associates, Inc. to study a proposed interchange at U.S. Highway 30 and South Dakota Avenue. This interchange would increase access to the Doubtless Subdivision area.

* The council approved the closure of portions of Greeley, Pearson and Gray Streets, Sunset Drive and Gable Lane for the Greek Week Olympics. The closure would be in effect from noon to 5:30 p.m. on March 22. Greek Week takes place the week after spring break, March 16-23.