The Kalona City Council met on April 2. Photo by Sam McIntosh.

The City of Kalona will soon be closing on a land purchase for flood mitigation and housing development.

The Kalona City Council authorized a loan agreement with Hills Bank & Trust for a taxable general obligation capital loan note of $850,000. The note will be used to purchase a 54.12-acre tract of land on the north edge of town for $982,000 from the Duane and Jeanette Yoder estate. A property transfer is set for April 18, but the land will still be used for harvesting this year. The land is currently being rented by a relative of the Yoders, and the city plans to make a written agreement to lease the land for $300 an acre for this harvest season. The city then plans to use 11.4 acres of the land for flood mitigation, five acres for a park per the Yoders’ wishes, with the rest potentially for housing development.