City entertains potential offers on Eighth Addition
The City of Alta is in discussion with a developer to build duplexes on the city’s Eighth Addition.
Evan Grieme from Northwest Builders asked the city if they would be open to offers on the city’s south lots 11, 12 and 13. The builder is looking to put in houses with either 1,400 or 1,600 square feet on both sides.
“This is not just your small spec house,” he said, “it’s a little fancier.”
Griemes sees high demand for housing in the area, particularly in Alta for those looking to move to smaller “suburbs” of Storm Lake where neighborhoods are quieter and taxes are cheaper.
“I don’t know of any other lots in town,” Griemes told Alta City Council Monday, “but I see high demand here. If I can’t do it here, I’ll need to go somewhere else.”
The new duplexes, he said, would be a great starter home or retirement house for a farm couple looking to downsize and move to town.
“For somebody that wants to come and build without basements—that’s a perfect combination,” said Mayor Al Clark.
The contractor said he would be starting with one lot, with potential to finish up to three others, one of which could be a single family home. Single family homes require a foundation, he said, which could pose problems for lots 11, 12 and 13, which have issues with water.
Grieme said he could sell them for at least $200,000, a gamble, admittedly, with thin profit margins.
“I don’t see a problem with it,” Councilman Denny Weber said.
“I think it’s a great idea,” Vi Tilk agreed.
Clark said the City has contracted with an agent for marketing, for whom they would pay $1,500 for each lot sold. Grieme would like to see costs for a potential deal minimized as much as possible, suggesting they make the deal without a real estate agent.
“We haven’t had a lot of activity on the bottom lot,” Councilman Kevin Walsh said.
Grieme said a written offer would be in by the end of the week, though he may not break ground on building until the end of the summer.