The City of Ames will spend an additional $350,000 for a new housing development on the former middle school site. The City Council Tuesday reluctantly okayed paying for the installation of city streets and sewers at 321 State Ave. 3rd Ward council member Peter Orazem suggested the city get away from the plan to build only single-family homes and consider multi-family homes. Developer Duane jensen urged the council to spend the money and move the project forward, saying he and the city have already made a considerable investment. The development will be a mix of low and moderate income homes, as well as houses that will sell at market rate.