A housing development planned for land where the old Ames Middle School sat is moving forward. The Ames City Council Tuesday directed staff to work with a developer to design a scaled-back version of the State Ave. project after inital estimates came in more than $500,000 over budget. Planning and Housing Director Kelly Diekmann says the city-owned land will see fewer market-rate and affordable houses under the revised plan. Also, developer Duane Jensen says the market-rate homes will likely cost a bit more to pay for the low-and-moderate-income homes. Jensen and city will each pay $550,000 to put up the development, which is likely to be done in two phases.