City OKs Housing Zone; To Start Early Next Year
The Olney City Council gave final approval to Tax Increment Reinvestment Zone No. 1, formally launching a housing-focused financing plan city leaders say is critical to addressing Olney’s workforce shortage.
The final vote at the Dec. 8 council meeting followed the council’s initial approval of the zone on Nov. 24 and allows TIRZ 1 to begin capturing increases in property values starting Jan. 1, 2025 — a deadline proponents have said was essential for the project to move forward.
Financial projections presented to the council show the housing-focused TIRZ is expected to generate about $27.3 million for the City of Olney over its 45-year lifespan, along with roughly $16.4 million for Young County and $7.1 million for the Olney Hamilton Hospital District.
The zone was created in response to a petition filed earlier this fall by attorney David Earl on behalf of Olney Development, a group led by Tower Extrusions President Mark McClelland, his daughter Lyndsey Miller, and son-in-law Reid Miller. The group plans to invest about $6 million initially to jumpstart construction, with total project costs expected to reach roughly $33 million once infrastructure and development expenses are included.
After the council’s final vote Monday night, Mr. McClelland said development would begin quickly. “I would say the first two months of next year we’ll get started on our project,” Mr. McClelland said. He said that Olney Development plans to work on several sites at once, focusing first on infrastructure and buildable lots to attract homebuilders — something he said Olney currently lacks.
“The big thing I want to get going is getting that infrastructure in,” he said. “You don’t have buildable lots here. Once we can present those lots to builders and say, ‘Come build with us,’ that’s when things start moving.”
The development will include a mix of housing types aimed at different segments of the workforce. Mr. McClelland said plans include smaller “starter homes,” duplexes or quadplexes near major employers, and larger executive-style homes on bigger tracts.
“Most of what we’re trying to get going first are the starter home areas,” he said. “That’s where we need the most work right now.”
Major employers such as Tower Extrusions and Air Tractor have told city officials they currently bus in hundreds of workers each day from surrounding communities because of Olney’s lack of available housing. City leaders say the shortage has limited workforce retention, slowed population growth, and constrained the city’s tax base.
Under the TIRZ structure, increases in property tax revenue within the zone will be reinvested into housing-related infrastructure, allowing developers to be reimbursed over time for roads, utilities, and other improvements. Supporters say the model lowers upfront costs, makes projects financially viable, and opens the door to state and federal infrastructure grants that require local matching funds.