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 tied to 90 new jobs but that the city’s development agreement is tied to the tax base rather than a guaranteed job count.

During public comment, David Gerard and Forrest Dillavout urged caution, saying the city had a pattern of conveying land cheaply and later incurring costs to reacquire property or to fund infrastructure. Residents asked who would pay for a potential rail spur; Anderson said estimates range depending on alignment, and he described a range of possible rail-spur costs (his presentation referenced estimates that could be closer to $1,000,000 where a longer alignment is required).

In finance matters, the council approved two bond resolutions after a presentation by Maggie Berger of Spear Financial. Berger said the city sold two offerings: tax-exempt general-obligation urban renewal bonds (Series 2025A) and taxable general-obligation urban renewal bonds (Series 2025B). She reported the low bid on the tax-exempt series came in at 3.8498%, and said the city’s AA2 rating from Moody’s was reaffirmed during the sale. Berger recommended approving both resolutions. The council adopted both bond-sale resolutions by roll call.

Housing and property items: The council approved a sale of 1027 West Third Street and 128 Lincoln Street to Rockstar Real Estate LLC for $25,200 and approved a related development agreement that includes a $10,000 partial purchase-price refund and a $10,000 infill housing incentive. The motion passed after debate: some council members said additional referral letters and rehabilitation plans allayed earlier concerns, while others said constituent complaints about the owner’s management practices meant they could not support the deal.

Other actions: the council approved acceptance of a donated property at 406 Randall Street, preliminary plat approval for Prairie Meadow Estates First Edition (49 lots), and a development agreement for a single-family infill at 835 Jane Street that includes a $5,000 incentive on substantial completion. The council also adopted a one-year suspension of certain civil service hiring practices for entrance positions under Iowa Code section 400.128 to allow more frequent testing and faster hiring; Missy Gerhardt, assistant human resources director, said the change preserves testing and other selection steps but removes a procedural step that slowed hiring lists for entry-level positions.

The council approved professional services agreements with AECOM for airport projects including runway rehabilitation and replacement of a passenger boarding bridge; the amounts recorded in the meeting packet were unclear in the audio, and the clerk provided the documents for signatures following the vote.

Votes at a glance (key items):
- Approve consent agenda and supplemental bills payments (added bills payment for Dec. 30, 2024 of $6,093,292.97; other payment amount in the record was not specified clearly): approved, roll call recorded as unanimous yes.
- Resolution directing sale of $3,560,000 (subject to adjustment) general obligation urban renewal bonds, Series 2025A: approved, roll call yes.
- Resolution directing sale of $28,590,000 (subject to adjustment) taxable general obligation urban renewal bonds, Series 2025B: approved, roll call yes.
- Receive and file proof of publication and open public hearing on conveyance of city-owned property to International Paper (northeast corner of CN Railroad and Legacy Road) and approve development agreement: public hearing held; conveyance and development agreement approved by separate roll calls.
- Sale and conveyance of 1027 West Third St and 128 Lincoln St to Rockstar Real Estate LLC for $25,200 and development agreement with $10,000 refund and $10,000 infill incentive: approved (mixed roll-call votes; Creighton Smith voted no on the two Rockstar items).
- Resolution approving acceptance of deed/donation of 406 Randall St: approved.
- Preliminary plat approval for Prairie Meadow Estates First Edition (49 lots): approved.
- Development agreement for 835 Jane Street (single-family infill) with $5,000 incentive upon completion: approved.
- Resolution suspending civil service procedure per Iowa Code section 400.128 for entrance positions (Jan. 7, 2025–Jan. 6, 2026): approved.
- Professional services agreements with AECOM for airport runway rehabilitation and passenger boarding bridge replacement: approved.

What the council did not do: The city development agreement with International Paper does not contain a city-guaranteed job count; Anderson and councilors confirmed state incentives tied to job creation would be administered by the State of Iowa and could be adjusted by the state if fewer jobs are created.

Looking ahead: Councilors asked staff to continue scrutiny of appraisals, potential rail-spur costs and the details of development agreements. Staff said appraisers would be jointly agreed and that any project infrastructure costs would be further defined in follow-up contracts and engineering phases.

Sources: Council meeting public hearing and roll-call votes; presentations by Noel Anderson (Community Planning & Development) and Maggie Berger (Spear Financial); public commenters at the Jan. 7 meeting.