The Fairfield City Council unanimously approved a resolution Monday, May 11th authorizing the exchange of 17.35 acres of city-area land near the Fairfield Armory for the forgiveness of a $200,000 loan the city holds against Grow Fairfield, clearing a key hurdle for a major workforce housing development planned for the site.
The resolution sets the stage for the land to be conveyed to Kading Properties, an Urbandale-based Iowa real estate development, construction, and property management company, as part of an incentive package to bring approximately 30 buildings and 156 rental units to Fairfield in a development estimated at more than $30 million.
The backstory begins in 2023, when the city loaned Grow Fairfield — formerly known as the Fairfield Economic Development Association — $200,000, part of which was used to purchase land that is now the site of the Sunrise Trail subdivision. The original agreement called for the loan to be repaid through lot sales in that division. Instead, Grow Fairfield identified Kading Properties as a developer capable of delivering a large-scale workforce housing project on a separate 17.35-acre parcel northeast of Sky Factory, appraised at approximately $350,000. Under the resolution approved Monday, the city forgives the $200,000 loan in exchange for receiving the deed to that 17.35-acre parcel — a transaction city attorney John Morrissey described as a clear value-for-value exchange that puts the city ahead financially.
Kading Properties representative Chace Hauschilt addressed the council, explaining the company’s model. Kading specializes in workforce housing — market rate leased homes — and has a footprint in approximately 26 communities across Iowa. The company handles all development, construction, property management, and maintenance, and has never sold one of its larger scale developments. “When we come to town, we have a commitment to your employers. We’re going to take care of them,” Hauschilt said.
Hauschilt said Fairfield was selected as one of five communities for Kading’s hometown tour last summer, during which the team spent a day with Mayor Boyer and Grow Fairfield’s Ed Malloy, touring downtown, visiting employers, and hosting a roundtable with local businesses. The consensus was clear. “They’re telling us that workforce housing, more housing options in Fairfield, are needed,” Hauschilt said.
Kading plans to submit a workforce housing tax credit application to the Iowa Economic Development Authority by June 10th, with award announcements expected in September. If successful, groundbreaking is anticipated in spring or summer of 2027. The application requires the developer to demonstrate land control or ownership of the site, which is part of why Monday’s resolution was time-sensitive.
The council discussed the best legal mechanism for transferring the land to Kading — whether a purchase agreement, option agreement, or other structure — with Morrissey noting that an option agreement may offer the city stronger protection. Hauschilt said he has structured similar deals in other communities using purchase agreements that are conditional on hitting key milestones such as securing tax credits, obtaining site plan approval, and committing to begin construction within a specified timeframe. He also noted that in past deals, agreements have included provisions requiring the land to be deeded back to the city if construction has not started within a certain number of years.
The council also unanimously advanced second readings of rezoning the parcels involved to planned unit development in preparation for the project.
