A resolution asking the City to extend the deadline to convey the Annie Wittenmeyer property to AW Holdings LLC was discussed at the June 4 Committee of the Whole meeting; councilors voted to keep the item on the discussion docket rather than approve the extension that night.

The issue arose because the developer cannot meet the June 30 closing date while awaiting federal environmental review tied to HOME funds. Bruce Berger, director of Community and Economic Development, told the council the developer has been working for roughly 18 months to secure multiple funding sources and that federal HOME funding (federal funds that flow through the state) remains under environmental review and is delaying the closing. Berger said the requested extension would be roughly 30 days.

Multiple residents urged the council to delay any loan commitment and to provide full details before action. Judith Lee (Second Ward) said the original conveyance transferred nearly $23 million in city-owned property for $1 and asked whether the city would be asked to provide taxpayer money as a gap loan, how large any loan might be, and what the interest rate would be. Cheryl Shagner (Third Ward) raised similar concerns and cited “Iowa Code 3 64” (as she referenced it) about disposal of public property, and argued that deferred maintenance might have contributed to the need to convey the property.

Berger outlined the financing package described by the developer: conceptual Low-Income Housing Tax Credit equity awarded last summer, state and federal historic tax credits still in process, a conventional (likely first-position) bank loan, developer equity, and city and state HOME funds (federal HOME funds routed through the state and city). He said the city has historically paired HOME funds with LIHTC projects and makes low- or zero-interest loans that are repaid over time, often when properties transfer.

Councilors pressed staff for more specifics before any loan approval. Alderwoman McGinnis asked for a one-on-one or more detailed briefing; Alderman Kelly asked staff to provide written answers and to meet with multiple council members because several had questions about whether the loan would be “new money” from the city’s HOME fund. Berger confirmed the city HOME funds would be new loans from the city’s HOME fund and that a loan approval would come back to council in a separate action if sought. Alderman Tim Dunn asked directly whether taxpayers would ultimately pay money; Berger replied that most of the listed funding sources are taxpayer-related (federal/state/local) but characterized the city loans as recoverable over time.

No loan was approved and no closing date extension was adopted at the meeting. Alderman Reinartz made a motion to keep items 1 (Annie Wittenmeyer extension) and 2 (Davenport Dream changes) on discussion; the motion passed. Councilors requested written answers to residents’ questions about the proposed gap loan amount, source, interest terms and timing, and asked staff to provide the requested documentation before any loan or conveyance is scheduled for final action.

If the council later considers a loan, staff said it will return with specific terms and recommended action; at this meeting the council only extended the discussion record and asked for more information.