Representatives from the city of Tracy, including Tom Dobson and Jeff Carpenter, addressed the Lyon County Board on Tuesday. Tracy was requesting $100,000 to help develop one of three new residential lots in the southern part of the city. Lack of available housing is limiting Tracy’s ability to grow, Dobson said.

A second area city has approached the Lyon County Board for help with developing new housing. On Tuesday, representatives of the city of Tracy and the Tracy Economic Development Authority brought forward a proposal to build a total of three new houses in the southern part of Tracy.

“This is something that we’ve been working on for two years,” said Tracy City Administrator Jeff Carpenter. Tracy was requesting $100,000 in “seed money” to help build one house and hopefully start future developments.

County commissioners said they hoped to address Tracy’s request at their next board meeting.

The request comes a couple of weeks after the county board heard a funding request to help with a proposal to convert the former Colonial Manor nursing home in Balaton to apartments.

Tom Dobson, a member of the Tracy City Council and the Tracy Economic Development Authority board, said the city has opportunities to grow, but population density was a limiting factor in that growth.

“One of our largest limitations to growing is housing. This is not for lack of interest. We have a demand – supply is our issue. We have people who would love to come to Tracy and buy a home or rent an apartment if they were available,” Dobson said. “Demand has been crazy for existing inventory. Many homes sell before they even get on the market, or within days. These drive costs up.”

In 2023, the Tracy EDA conducted a housing market analysis which found a need for multiple types of housing, from rentals to single-family homes and senior housing. Tracy had a projected demand for 47 new housing units between 2023 and 2030, the analysis said.

Tracy is proposing to use land along Front Street, in the south part of Tracy, as the site for a new housing development, city representatives said. United Community Action Partnership has selected Tracy for two new homes, as part of a grant program. So far, there was one applicant for one of the homes, with two others interested, presenters said. The program was poised to launch in 2024.

“At the direction of the city and the EDA, while we had surveyors already coming out to that area, we determined to survey three lots,” Dobson said. “Two lots will be donated to UCAP Housing for this project. A third is available for sale, but we have a plan in place.”

Dobson said the housing addition was an opportunity to partner with Tracy Area High School.

“Tracy Area Schools would like to continue to offer a building trades course,” Dobson said. With the proposed partnership, the Tracy EDA would act as the developer for the third house, with Tracy students doing the framing and local businesses doing plumbing and electrical work with student assistance.

“We’re seeking a $100,000 contribution to add to our own seed money, establishing what we hope could one day be a self-sustaining program,” Dobson said.

Once the house is built and sold, money from the sale will be used to fund the development of additional lots for housing, he said.

Lyon County Administrator Loren Stomberg said there were some questions about the funding request that he would need to run by County Attorney Abby Wikelius. County commissioners said they wanted to be able to get back to Tracy representatives by the next county board meeting.

“I think it would be beneficial for the city of Tracy to get that answer as quick as we can,” said Commissioner Rick Anderson.