Oskaloosa housing project brings 48 new townhomes to city’s west side

With construction equipment already on site and grading expected to begin within days, Oskaloosa leaders gathered to mark the start of a 48-unit townhome project aimed at one of the community’s most pressing needs: housing.

The Westgate Townhomes, planned for the city’s west side, will bring two-bedroom, two-story rental units to an area that has seen continued growth since the construction of the Fairfield Inn & Suites hotel in 2019 and the Trio Entertainment Center project that followed. For city leaders and Hubbell Realty, the project is both a response to local demand and a sign of confidence in Oskaloosa’s future.

Michael Bialas, project manager for Hubbell Realty, said the development will include two different unit sizes, approximately 850 square feet and 1,050 square feet, with rents expected to range from $1,225 to $1,375.

“We’re really excited to introduce them to your market,” Bialas said. “I think they’re going to meet some of the housing needs that has been demonstrated so far.”

Bialas said Oskaloosa stood out because of its documented housing need and its economic activity. He pointed to growth connected to Mahaska Health, Musco Lighting, and Clow Valve as part of what made the community attractive for investment.

“The economic activity was really a driving force for what initially attracted us to Oskaloosa,” Bialas said.

The project is Hubbell Realty’s first move into a city the size of Oskaloosa. Most of the company’s work has been in the Des Moines metro area, with recent expansion into Omaha. Bialas said larger metro areas have more housing development to meet demand, while Oskaloosa has a shortage of newer housing options.

“This will be our first foray into a smaller city like Oskaloosa, but we’re really excited about it, trying to figure out the solution for housing,” he said.

City Manager Shawn Metcalf said conversations with Hubbell Realty began nearly a year ago, including discussions about city incentives and the type of housing the company could provide. The city worked through a development agreement that included tax increment financing support.

“We just couldn’t be happier for this to happen,” Metcalf said. “This is such an exciting thing to see, because we need housing so badly right now.”

Metcalf said a housing study completed a few years ago identified a need for 1,500 housing units in Oskaloosa. Since then, he said, continued growth among local employers has likely pushed that number higher.

“There’s a need,” Metcalf said. “We need the housing, so we’re hoping this will go really well.”

The need is not only about numbers. Mayor David Krutzfeldt said Oskaloosa has worked hard to convince people that the community is a good place to work and live, but housing has often been the next question.

“As a community, we’ve done a good job of convincing people that this is a great place to work and live, and then we always had to have this awkward conversation afterward,” Krutzfeldt said. “Now we need to figure out where you’re going to live, and so this helps us answer that question.”

Krutzfeldt said the townhomes will be especially appealing to younger members of the workforce, including people beginning their careers who want to live near where they work. He said those residents can become more than new neighbors.

“They’re going to be the future leaders of our businesses and our city,” Krutzfeldt said.

The project also reflects a broader focus on the west side of Oskaloosa. Krutzfeldt said the Fairfield Inn and Suites and The Trio projects helped establish momentum in the area, and the Westgate Townhomes build on that foundation.

“Projects like the Westgate Townhomes are going to help us frame Oskaloosa’s message,” he said.

Bialas said the units are market-rate rentals, not income-qualified housing. He described the project as attainable housing designed for renters seeking a newer option at a price point that fits their income.

“What we’re trying to do is keep it affordable and attainable,” Bialas said.

If the weather allows, Bialas said grading could begin quickly, with townhomes delivered next spring and the full project completed by next summer. Rental information is expected to be available closer to the first units' opening, likely about 90 days before the first building is ready.

The development was made possible through cooperation among Hubbell Realty, the City of Oskaloosa, Iowa Trust and Savings Bank, Musco Lighting, the Mahaska Chamber and Development Group, and others. Bialas said that collaboration helped the project move forward.

“This project is a direct reflection of what collaboration and creativity can help achieve,” he said.

Metcalf credited the Mayor and City Council for their pro-growth support for developers. “Mayor Krutzfeldt and City Council recently updated the city’s Tax Abatement and Tax Increment Financing policies to be as competitive as other pro-growth communities. These changes made a critical impact on the feasibility of this project.” 

Metcalf credited Shawn Christ, the city’s Development Services Director, a key player in making this project a reality, and city staff for their role in the planning, permitting, and zoning process.“He and his staff are knowledgeable, competent, and very easy to work with.” 

Metcalf also thanked the City’s Finance Director/City Clerk, Pam Nimtz, for her critical role in the project.

For local leaders, the groundbreaking represents more than a single housing project. It is part of a larger effort to support employers, attract residents, and give people more reasons to choose Oskaloosa.

“We stand at the beginning of a new chapter in Oskaloosa’s story,” Krutzfeldt said. “A chapter that’s marked by investment, growth, and confidence in what the community can become.”

If the project fills quickly, Bialas said Hubbell Realty would be open to future conversations about additional housing in Oskaloosa and the region. For now, city leaders see Westgate as a tangible step toward meeting a need that affects workers, businesses, and the community’s long-term growth.

“We hope that bringing these 48 housing units is going to help achieve the long-term success of Oskaloosa,” Bialas said, “attracting and retaining workforce, strengthening the local economy, and giving people a place that they’re proud to call home.”