Council amends development agreement to help unlock Courier building redevelopment; city to buy adjacent metal-building parcel
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Summary
Council approved an amendment allowing the city to acquire roughly 132 feet of land (metal building area) at the former Courier property and adjusted a previously approved development agreement to reduce unit count and change reimbursements; the city would pay $500,000 for the parcel, officials said.
The Waterloo City Council on Monday approved an amendment to a development agreement intended to move forward redevelopment of the former Courier building downtown and authorized the city to acquire the north 132 feet of the site where a metal warehouse now stands for $500,000, staff said.
City Planning Director Noel Anderson told the council the amendment reduces the project from 78 units to 70 and adjusts rebate amounts. The change follows lengthy negotiations over historic preservation, exterior metal panels and the need to remove or relocate the metal warehouse to allow rehabilitation of the historic masonry structures.
Developer representatives said they had lost $2.3 million in historic tax-credit equity during appeals with the National Park Service and had reworked pro formas and plans for several months. The developers said removing the metal building and rehabilitating the historic structure produces a better downtown outcome but increases project costs.
Council debate focused on the $500,000 payment for the parcel, whether the community could recoup the expenditure through increased taxable value, and the city’s broader downtown TIF commitments. Council member objections noted that the Downtown TIF already funds multiple projects and that large commitments reduce flexibility for future uses.
Noel Anderson said the negotiated purchase price of approximately $21.88 per square foot is at or below appraised downtown values and that the purchase would clear the metal structure from downtown while creating an 8,000-square-foot building in an industrial park as part of the relocation plan.
Developer representatives said significant soft costs have already been incurred for architecture, historic reviews and pre-construction work, and that additional funding or assurances would be necessary for the project to proceed without risking financial viability.
Council members asked for clearer forward plans for the newly created land parcel and recommended stronger redevelopment planning. The amendment passed on a roll-call vote recorded during the meeting. Staff said payments to the developer would be contingent on completion milestones and that the city would not transfer the $500,000 until project benchmarks were met.
The parcel acquisition is part of a broader downtown redevelopment effort aligned with a forthcoming downtown master plan staff said is underway with a consultant.
The developers and city staff said they expect to file roof permits and start work on the non-historic portion of the project this year; the historic Montgomery Ward-style building remains subject to State Historic Preservation Office and National Park Service review processes.