The Waterloo Board of Adjustments on July 22 approved a variance allowing a 3‑foot rear yard setback and a 3‑foot side yard setback at 2625 Falls Avenue so the property owner can build an addition and operate a wholesale aquaculture (shrimp nursery) business.
Staff told the board the property is in the C‑2 Commercial District and has been zoned C‑2 since 1969, and that the requested setbacks — 3 feet instead of the 35 feet required in the rear and 3 feet instead of the 5 feet required in the side — would not appear to have a negative impact on the surrounding neighborhood or traffic. A staff report noted adjacent properties have similar nonconforming setbacks and that a rezoning to allow wholesale aquaculture will be required; the rezoning request was unanimously recommended for approval by the Planning, Programming and Zoning Commission on July 8 and is scheduled for the Aug. 4 city council meeting.
Malcolm Cleopee, who identified himself as the building owner and operator of an accounting practice at the site, told the board he plans to extend the building “to operate an aquaculture, shrimp farming, nursery wholesale business, for wholesale purposes.” Cleopee described a recirculating aquaculture system “using the RAS, meaning we recycle the same water,” and said no process water will be discharged to the sewer system; he estimated about a 10% loss of water to evaporation during cycles and said the first commercial harvest would take about three months after production begins. Cleopee said he expects to fund construction with personal resources and a pending Small Business Administration loan application.
Staff recommended approval, citing the property’s long history of commercial zoning, a lack of apparent negative impacts to traffic or neighborhood character, and precedent variances in the area. Board member Craig Holdemann moved to approve the variance and a second was made; the motion carried.
The variance approval allows the building addition to proceed but does not itself change the property’s zoning. The owner and staff noted the site still needs to be rezoned to allow wholesale aquaculture operations; that rezoning was recommended by the planning commission and will be heard by city council on Aug. 4, 2025.
Board Chair Jerry Thornberry handled the motion and called for the vote. The board did not direct additional conditions beyond the variance findings recommended in the staff report.
Planning staff and the owner discussed the siting of the addition (on the south and east sides of the building), the similarity of nearby setbacks, and the commercial nature of the immediate area. No public opposition was reported in the staff packet.
The owner may proceed with building permit and financing steps subject to the city’s zoning and permitting requirements and the pending council rezoning decision.