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Galesburg pitches million-dollar plan to build homes

Galesburg can think of a million reasons to build new homes. The city hopes that $1 million in incentives will boost new construction and tax revenue. Lots of f...

Galesburg can think of a million reasons to build new homes.

The city hopes that $1 million in incentives will boost new construction and tax revenue.

Lots of folks think it's about time.  The newest housing subdivision in Galesburg was built 15 years ago.

"We have a great need for new housing," said Kit Wilcox, Century 21.

Galesburg wants to inspire new home building with cash incentives that are earmarked for economic development.

"A lot of people we have coming in, in particular young people, are looking for the new, more modern floor plans," Wilcox said.

Money could help turn vacant land into the newest project for homes and condos.

"We don't have a great  track record for new homes being built in our area," said developer Mark Kleine.  "A package like this, incentive package, will be greatly needed, and I believe used."

Last year, there were just three new housing starts in Galesburg.

So far in 2015, the only new home is a Habitat for Humanity project.

During this catch-up time for construction, incentives serve as a low-interest loan.

"A developer can either sell a lot or a home, and they start paying off that loan," said Chuck Ross, a managing broker with Mel Foster Company.  "It works out really well if they can partner with the city to do something like that."

Just from Kleine's planned subdivision, Galesburg could earn $65,000 per year in taxes.

"The city would, in effect, invest at that level in the project," said City Manager Todd Thompson.  "Then either recoup its dollars through property tax revenue or repayment."

Galesburg's city council should decide in March.

It's all about getting families to live and work in Galesburg.

Plus, housing incentives can spark other economic development.

"In the way of bringing jobs to our community and trying to grow, we need housing," Kleine concluded.

And soon, maybe new homes to build from the ground up in Galesburg.

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