An ordinance to rezone a 6.5-acre parcel on the south edge of Fulton will progress to second reading at the next City Council meeting.
Zimmerman Properties has had a contract to purchase the parcel for several years. Mike Bell said he and his wife, Julie, bought the land 11 years ago when a second nuclear power plant was planned in Callaway County.
"We thought it was a really good investment," he said. "Then the nuclear plant didn't go through, and we've been marketing it for 10 years."
The tract is zoned C3, designating it for large-scale developments. That, in part, has kept the relatively small parcel from selling. The Bells want it rezoned to C2, which would make it acceptable for more, perhaps less intense usage.
Several years ago, the Bells were approached by representatives of Zimmerman Properties, which built and manage Callaway Village I and II. They proposed building income-qualified housing - not the same thing as low-income housing. They have a current waiting list of more than 100 families.
"I've been under contract with Zimmerman for several years," Bell said of the parcel's current sales status. "I've heard people talk about housing around here. I think it's a good deal."
James McDonald, a broker and vice president at Zimmerman, and attorney Kendall McPhail, also representing Zimmerman, attended the three-hour Tuesday meeting, which included a public hearing about the parcel's rezoning.
"It comes down to what is the appropriate zoning for this property," McDonald said.
He said if Zimmerman builds 48 housing units on the parcel, it would add 27 cars during peak hours in the morning (7-9 a.m.) and 32 cars between 4-6 p.m.
"It's a $5.6 million development, and the taxes brought into the city would be significantly greater," McDonald added.
Two people spoke in opposition to the project during the public hearing. Dan Smith said he was concerned about the lack of infrastructure.
McDonald said sewer and water lines in that area are adequate, and the developer would pay the cost of installation of utilities in the housing complex. Utilities sold to residents would more than make up the cost of their construction.
Smith also said he was concerned about safety, thinking people would be walking up and down the highway, even crossing U.S. Business 54 to visit a gas station.
"If it's built, there's going to be a lot of foot traffic," he said. "There's kids wanting to go to the convenience store. Is this really what's best for the school district?"
Debbie Smith was also concerned about the school district and the future of the community.
"What we need are (home) owners, not renters. Renters don't invest in the community," she said.
While there was an opportunity for a third person to speak in opposition, a third person did not come forward.
McPhail said the impression of a low-income housing development on that parcel is mistaken.
"It's unfortunate it's designated as low-income; it should be designated as qualified-income," he said.
Tenants would be required to earn between $30,000-$42,000 annually to qualify to live there.
"It's not going to have tenants lacking jobs, lacking vehicles," McPhail said.
Tenants, he added, would be nurses, Fulton State Hospital and Dollar General Distribution employees, police and firefighters, and teachers.
"For younger people in this city, they are highly stressed when looking for housing," McPhail said. "They will be future owners."
Callaway Village, at 547 Amerihost Drive, has two- and three-bedroom units ranging in price from $368-$495 a month, with a pool, fitness area and laundry.
Last winter, City Administrator Bill Johnson said the exact ratio of rental housing vs. owner-occupied dwellings in Fulton was not known, but he thought rental properties made up 40-45 percent of city dwellings. Many of the rentals are occupied by college students rather than permanent residents. According to 2015 values collected by DataUSA, 50.1 percent of the housing units in Fulton were occupied by owners, while the national average was 63.9 percent. DataUSA cited the U.S. Census Bureau for its information.
"The community is in need of affordable housing," Johnson said Wednesday. "For a lot of people in the $30,000-$40,000 (income level) range, inventory is limited. In order to attract new business and industry, we need more places for these people to live."
The City Council was split 4-4 in a vote to move the ordinance forward, and the tie was broken by Mayor LeRoy Benton, who voted to move it to a second reading. Johnson agreed with the mayor's decision.
"I don't look at it as being low-income," he said. "I look at it as being affordable."
The next council meeting will be 6:30 p.m. June 26.