The Jefferson City Council recently approved two development agreements to try and incentivize new housing.

At their meeting last week, the Council approved an agreement with Mark Bauer Development Company for 80 percent of tax increment financing, over seven years and not to exceed $900,000 for lots at Lincoln Ridge Estates. The other agreement is with Tri-County Cash Lumber Mart for 100 percent tax increment financing, over seven years and not to exceed $600,000 for lots at Briarwood Subdivision.

City Administrator Mike Palmer says with development comes a lot of expenses and sometimes it can be cost prohibitive to make any money when selling a housing lot.

“By offering this new development agreement, it gives a little more options and a little bit more money coming back. Again, it’s really more of a rebate of property taxes being paid in. The idea is, let’s get more houses built so we have more property taxes coming in, because we just have vacant lots sitting out there.”

The agreements would be based on building a new house and use some of the new taxes, through tax increment financing, to buy down some of the cost. Palmer adds that both agreements expire in 20 years, so the City is hopeful that all of the lots will be sold and houses will be built when the agreements are set to expire.