NEBRASKA CITY – Builders in Nebraska City’s new housing development will have covenants similar to those at the existing Morgan Drive development and financial penalties for missing construction deadlines, city officials told about 40 people who gathered last week for a town hall meeting on the Kreifels Hills project.

Houses will have a minimum square feet, include a two-stall garage and have 30 percent of the street façade brick or stone.

Under a development agreement with the city’s Community Development Agency, the city is the developer and the CDA is the owner. This allows the CDA to sell lots without public meetings.

If a lot is sold and builders do not complete construction in an established timeline, the CDA may rebuy the lot for the price it sold for.

Building is supposed to begin in 30 days, with groundbreaking in 90 days and completion in one year.

If construction does not start within 90 days, there is a $250 per month penalty. If construction is not complete in a year there is a $1,000 per month penalty paid to the CDA.

Marty Stovall, construction and facilities manager, said the city can grant exemptions to the timeline in the case of pandemic, natural disaster or some other unforeseen factors.

Nebraska City broke ground on the development in October. Stovall reported that the waterline is complete. He expects paving in June and a street ready in July.

The street work is a topic at Monday’s city council meeting. Stovall proposes using   Community Development Agency funds to link Morgan Drive to Grundman Boulevard. He said extending the street will make five additional multi-family lots available for sale. Proceeds from the sale of lots go back to the CDA.

Once constructed, workforce housing is supposed to sell below $325,000 and newly constructed rental housing units are supposed to be price at $250,000. Stovall said the state sets the amount each year.