Council approves $4 million increase, collateral assignment for Crossroads Mall redevelopment; developer details setbacks and timeline

The Waterloo City Council on Aug. 25 approved a $4 million increase to the development agreement with Waterloo Crossroads Development LLC and adopted a collateral‑assignment resolution that the developer said is needed to secure bank financing. The council’s votes clear the way for a planned closing on multiple parcels and a multi‑phase redevelopment of the Crossroads Mall site.

Noel Anderson, community planning and development director, and BJ Stokesberry of ATI Group/McClure described why the extra funds are needed and how financing will work. Stokesberry said issues discovered in January involving off‑site agreements and liens that were not disclosed by the mall’s prior owner Namdar stalled an earlier closing and required the developer to expand the acquisition scope. He described plans to close on several parcels in a sequence and to conduct asbestos surveys and mitigation after remaining tenants leave. Stokesberry said demolition would begin once mitigation is complete and estimated exterior demolition and site preparation could be substantially complete within about a year if schedules hold.

Stokesberry said the collateral assignment allows the developer’s lenders to take comfort from the city’s reimbursable obligations in the development agreement; he said the assignment is not the city personally guaranteeing the loan and that the developers and their investors are also providing personal guarantees. The developer said reimbursable expenses will be documented and invoiced back to the city under the development agreement before reimbursements occur.

Council members asked for timeline clarifications and requested that the developer publicly share the project’s master plan. Stokesberry said a master plan exists, that closing on some parcels was imminent and that the developer would circulate the plan and phase‑1 outlines to council. Council members also discussed the prior owner Namdar’s conduct; Stokesberry said Namdar provided inaccurate information that complicated the transaction.

The council passed the amendment and collateral assignment resolutions by roll call vote. Councilors noted the total contract cap may not be fully spent and that the city’s investment is intended to catalyze private redevelopment and eventual taxable property improvements.