Origin Homes, of West Des Moines, recently approached the city, asking if it would consider lowering the cost of building lots in Brewer Creek Estates. The asking price for ordinary lots in Brewer Creek No. 5 are approximately $16,000, with some larger lots selling for $30,000. Some cost much more. Origin told the city such prices make final home prices higher than would-be owners can afford. Last night, the City Council of Webster City agreed, and voted unanimously to reduce the price of the lots to a nominal $100 each, providing Origin met certain conditions.
Since 2017, the city has invested $2,758,794 to develop Brewer Creek Estates Subdivisions 5 & 6, including sanitary and storm sewers, water mains, paving roads, and site grading. The city’s objectives are clear: recoup its investment, put new homes on tax and utility rolls, and increase the population.
When asked why the city would agree to cutting the cost of lots, City Manager John Harrenstein said; “The prices for lots in the 5th & 6th addition of Brewer Creek were adopted by Council in 2017. Since then, there’s been a global pandemic, inflation, increases in interest rates, and the cost of construction has changed. While there’s been some development in the subdivision, the pace of sales has understandably lagged behind original estimates. The City continually hears from local employers that one issue associated with their recruitment efforts is a lack of housing options. Examining lot prices in view of these concerns is appropriate.”…