Waterloo council approves International Paper development, sells property and authorizes bond sales; mixed votes on housing deal

The Waterloo City Council on Jan. 7 approved a development agreement with International Paper Co. and the sale of city-owned land for a proposed 800,000-square-foot industrial building, and separately authorized the sale of two series of general-obligation urban renewal bonds to fund city projects.

The International Paper agreement authorizes conveyance of the city parcel at the northeast corner of the CN Railroad and Legacy Road to International Paper for $1 and authorizes a development agreement that provides a 50% tax rebate for 15 years, with a minimum assessed value of $40,000,000 for the new facility. The council approved the sale and the development agreement in separate roll-call votes.

Why it matters: City staff said the project would create room for rail access and room for future expansion and that the new building would substantially increase the area's tax base even after the rebate period. Several residents spoke at the public hearing asking the council to scrutinize appraisal values and the terms of property conveyances; councilors pressed staff on risks including rail-spur costs and the lack of a firm job guarantee in the city agreement.

Noel Anderson, the city’s community planning and development director, told the council the project would use 66 acres for the main building and an additional roughly 30 acres for operations and expansion. “It’s definitely a great project for the city of Waterloo to work with International Paper,” Anderson said. Anderson said an appraisal for the company’s existing site would be jointly selected and that the city expects the new building to have a minimum assessed value of $40,000,000. He said the company applied to the state today for a program…