Sioux City's housing stock is also increasing with a new project in Morningside.
In a 2010 land swap, the city obtained the former site of East Middle school for part of Spaulding Park.
MGD Holdings has proposed to buy the land on Morningside and Orleans Avenues, for a 26-unit housing project.
"We tried to pick a project that wouldn't be so dense that it wouldn't blend into the neighborhood, yet would have a real residential character to it," said Mayor Bob Scott.
MGD will get the land for a dollar and agree to waive the city wide tax abatement.
The project is set to be finished in August of 2019.