Northside neighbors concerned about proposed 85 houses in New Castle

The city council had a public hearing May 5 before taking the final vote on the rezoning the Washington Street parcels.

Resident Caitlyn Acosta told the council she lives within 100 yards of the field.

“We’re concerned about 85 houses in that area,” she said.

Acosta said the development plans show a new road cutting through the Ted Fitzgerald Trail, which students travel on to get to and from Wilbur Wright Elementary School.

“It’s a safety concern with the students,” Acosta said.

Mayor Greg York said the housing development plans include entrance on Washington and 20th Streets.

Council member Mark Koger wondered if the Washington Street entrance could be moved. City Council President Rex Peckinpaugh explained that there is a protected wetland in the area, which restricts how far down the road can go.

“I think there might be a better alternative somewhere,” Koger replied.

York said the crossings there will be similar to other school districts where students have to cross an intersection.

There was some discussion about the lack of crossing guards posted near New Castle’s elementary schools.

“(We’re) not unsympathetic, but this is no different situation than any other school,” Peckinpaugh said.

New Castle Police Chief Matt Schofield said the police department has tried to keep fill crossing guard positions, but it has been difficult.

“Last five years, it’s been a nightmare to get anyone to do it,” Schofield said.

Acosta also worried about fitting 85 homes into such a small area.

“They’re going to be very small spaces, very small yards,” she told the council, asking what the average price would be.

York said the homes would start at $275,000.

“Is there an opportunity to make the houses more affordable? Or less of them in that area?” Acosta asked. One of her concerns was that so many new homes in one area would attract crime or present a fire hazard.

She was also concerned about people in New Castle being able to afford new homes at that price.

“We have jobs in New Castle that employers are hunting for people to work, and we don’t have enough housing for people to buy,” York said.

Council member Lynn Perdue said New Castle residents often work out of town. Acosta told the council she’s in that demographic of living in town but working somewhere else.

City-wide housing project

The planned Washington Street project is also part of a housing development further south, behind Myers Furniture on Memorial Drive. Together, the two sites could bring 250 new homes to the city.

Corey Murphy, the president and CEO of the New Castle-Henry County Economic Development Corp. (EDC), said the entire project will need about $8 million in public infrastructure before any houses can be built. The infrastructure will include roads, drinking water lines and drainage.

The New Castle housing project is part of Henry County’s request for $4 million from the Indiana Regional Economic Acceleration and Development Initiative (READI) program.

City leaders support new housing project

The Washington Street site was the only one being discussed at the May 5 hearing.

Murphy told the council that a recent housing study showed Henry County is short about 1,800 homes in the price range of $100,000-$299,000, compared to the demand.

“This gap didn’t appear overnight, so closing the gap will not happen overnight,” Murphy said.

Murphy said his office and local elected officials have been working on housing for two years. For example, the city council has already approved a residential tax increment finance (TIF) district that will help pay for new public infrastructure.

Murphy said New Castle is also able to use READI 2.0 funding for the project.

“Why? Because we need housing. We need housing in our community,” Murphy told the council.

He said it has been more than 40 years since New Castle had a large housing development.

This if very important to the long-term prosperity of the city and our county, because the city’s in the county,” Murphy said.

He introduced Scott Adams, from DC Develop, to talk more about the potential housing project.

“Our view of this is this could be a once-in-a-lifetime opportunity for New Castle,” Adams said. He noted there is a very good chance READI funds will go away, so now is the time to use them as a community investment.

“I’ve been told by everyone, there will not be READI 3,” Mayor York agreed.

Adams said New Castle is in a unique opportunity where all the variables in plan – funding, planning, community support, demand – check all the boxes for a successful development.

He explained the rezoning request would allow lots to be about 5 feet narrower and 5 feet shorter than R1, allowing for lots that are 55 feet by 110 feet. Adams said these will make the most efficient use of the properties, after taking into account the city’s setbacks and drainage concerns.

On the topic of drainage, Adams addressed a concern from Acosta’s husband, Al, who said their property was flooded during the April storms.

“The city’s code does not allow us to discharge more water than is there today,” Adams said. The plans also include a detention pond to help control the release of stormwater.

Regarding the entrances, Adams said the city’s unified development ordinance (UDO) requires two entrances if there are more than 26 lots.

He said the roads were placed to keep vehicle traffic away from the school intersection. The designers place the road as far east as they could without interfering with the planned placement of the detention pond.

Adams said DC Develop hopes the houses will start lower than even the price Mayor York quoted.

“The demographics of New Castle say $250,000 is the sweet spot,” Adams said.

Murphy said funding from READI and TIF will help finance bonds to pay for the initial water, sewer and roads.

“To be very clear, all of those funds go into the public infrastructure, not building the houses,” Murphy told the council. “Without the public funds, that price point of $250,000 is a pipe dream.”

Murphy told the council DC Develop hopes to break ground on Washington Street in July of this year.

Adams said the first 27 lots would be laid out by the end of 2025, with home construction starting in early 2026.

“This truly is about the growth of our community,” York said. “Indianapolis is coming this way, the state of Ohio is coming this way.”

The city council approved the Washington Street rezone request 7-0.