Concept of proposed apartment building for the Budget Inn site at South Broadway and Business Route 30 in Toledo. The development would be aimed at providing housing for families of Iowa Premium Beef which is expected to open in Tama soon. Schipper Kastner Architects drawing

New family-style apartment housing on the closed Budget Inn motel site in Toledo now appears to rest solely on approval of funding from Community Development Block Grant 2008 flood money.

Bob Rafferty, attorney for developer Newbury Living, confirmed in an email last week to Toledo City Clerk Janet Kriegel, an option on the property has been signed by the owner. In a special city council meeting on Friday night, Aug. 29, members voted 4-0 to change the zoning on the property from B2- Business to R3- muti-family residential. Voting in favor were Brian Sokol, Travis Mullen, Terry Goodhart and Joe Boll. Member Jeff Filloon was absent.

The move was recommended to the council on a 4-1 vote of the Planning and Zoning Commission which met on Aug. 19.

Tama County Assessor records list Hetal P. Rasania as the owner. The land is assessed at $120,000 value and the buildings at $64,230 according to the Assessor’s website. Raffety told the city council Newbury Living offered to pay $130,000 for the Budget Inn property and expects to spend $50,000 to clear it.

Newbury Living, a West Des Moines-based development company, wants to construct a 24-unit building on the property to provide housing for a portion of the expected influx of some 600 employees when the former Tama Pack is reopened by Iowa Premium Beef.

Architect’s drawing shows plans for the Budget Inn property in Toledo if a CDBG is approved. -Schipper Kastner Architects

In his last appearance before the Toledo Council on Aug. 25, Rafferty answered council member Mullen’s question by saying the construction would not be done if the CDBG is not approved. However, he said the project is a 24-unit complex with 16 two-bedroom and eight three-bedroom apartments.

A requirement to receive the funding is 51 percent of the units must be rented to persons whose income is below the Tama County family median of $47,700. That restriction is in place for 10 years.

Rafferty said on Aug. 25, “It’s a very storng application. the Tama and Toledo area needs housing.”

The Budget Inn, located on south Broadway at Business Route 30 has been closed for several years. it includes 25 motel units and a manager’s apartment in three buildings.

In August, Tama Council members denied an option for Newbury to buy property for an apartment complex in the city-owned Indian Hills Addition. Objections were heard from residents who have built homes in the area fearing a drop in property values and concerns about increased traffic.

Budget Inn property in Toledo. Chronicle photos/John Speer

The developer also expressed interest in the former South Tama Primary School site bordered by State, Harmon, 8th and 9th streets in Tama.

The L-Ranko Motel served area since the mid-1950s seen in a postcard view.