Cedar Falls council approves downtown event center, CDBG plan, land-use changes and infrastructure projects; adopts septic-to-sewer policy

Cedar Falls City Council on Monday approved a package of development, housing and infrastructure items, including a private development agreement for 315 Main Street, the city—iscal year 2026 Community Development Block Grant/HOME annual action plan and multiple public-works contracts, and adopted a residential septic-to-sanitary-sewer conversion policy.

The approvals came after public comment and staff presentations that touched on downtown parking, neighborhood density, sidewalk replacement assessments and the fiscal details of several projects.

The development agreement approved with Lawn City LLC covers the former Scratch Cupcakery building at 315 Main Street. Shane Graham, a city staff presenter, told the council the project would "invest approximately $1,000,000 into the 5,500 square foot space" and create an event and banquet center with an estimated occupancy of 175. Under the standard downtown development agreement the council authorized a 10% rebate on the increase in assessed valuation created by the project. Council members raised questions about parking impacts downtown but voted to approve the agreement.

The council also adopted the city—Y26 annual action plan for the CDBG/HOME consortium, a federal funding plan the city submits to the U.S. Department of Housing and Urban Development. Melissa Denning, Community Services Supervisor, said Cedar Falls llocation for the coming year is $278,127. Denning said proposed projects include sanitary sewer lining, ADA restroom upgrades at Seerly Park, street-tree plantings, owner-occupied and tenant rehabilitation and support for local human-service agencies.

Planners presented and the council approved a future land use map amendment for the Green Hill Village area that changes a roughly 5.22-acre site from medium-density residential to low-density residential to facilitate a detached single-family development of about 16 dwellings (approximately 3.07 units per acre). The council subsequently approved a mixed-use (MU) district master-plan amendment and a development-procedures agreement with GHV Holdings LLC that implement the change.

Public-works items approved included the 2025 sidewalk assessment project for Zone 7, which will replace deficient sidewalks and assess the cost to adjacent property owners (total estimated construction cost $162,763.15), and the Union Road culvert replacement project, a reinforced-concrete box-culvert replacement and sanitary-sewer extension project estimated at approximately $1,150,000 to be funded from local option sales tax and the sanitary sewer rental fund.

The council passed two code amendments on final reading: ordinance No. 3110 amending Chapter 26 (zoning) relative to swimming-pool regulations, which passed 5-1, and ordinance No. 3111 amending Chapter 10 (garbage and refuse) related to service charges and unsanitary accumulations, which passed on final reading with council approval.

At the start and end of the meeting several residents spoke during public forum. Gabe Roadhouse urged council members to state publicly whether they support a petition to change the city—orm of government, saying, "Integrity is doing the right thing when no 1 is looking," and asking for council support for a referendum-style petition. Dennis Preckler urged the council to reconsider plans for a whitewater-park phase, citing flood concerns and examples from other cities. Chad Walsh asked the council to review local enforcement and interpretation of Iowa Code 20.3 (metering of electricity to multiple units) and staff said the city will seek the state's interpretation of the statute.

Councilors also acted on appointments and routine consent items, approved a fireworks-display permit for the Sturgis Falls celebration on June 26 and amended the city—ireworks resolution to reflect recent state legislation that requires cities to allow use on July 3 and December 31; council retained an additional July 5 allowance this year to cover the weekend.

After debate the council adopted a residential septic-to-sanitary-sewer conversion policy that offers incentives to property owners who connect to city sewer where available. The policy includes up to $5,000 in reimbursement for qualifying connections and other provisions discussed at length during committee review. An amendment to index the $5,000 payment to the Consumer Price Index failed on a tied vote; the original $5,000 provision remained in the adopted policy.

Where council directed staff to follow up: staff will request the state's interpretation in the dispute over multiunit electric metering raised by Chad Walsh; engineering staff will proceed with the sidewalk Zone 7 and Union Road projects under the adopted plans; and city attorneys and staff will prepare any required ordinance language to align local fireworks rules with the state law changes.

Votes at a glance

- Approve agreement for private development with Lawn City LLC (315 Main Street): approved (roll call: all members voting aye). Staff: Shane Graham. Key terms: ~$1,000,000 investment; 5,500 sq ft; occupancy 175; 10% tax rebate on increased valuation.

- Adopt fiscal year 2026 annual action plan (CDBG/HOME): approved (roll call: all members voting aye). Staff: Melissa Denning. Allocation: $278,127.

- Amend future land use map (Green Hill Village) to low-density residential and approve MU District master-plan amendment and development-procedures agreement with GHV Holdings LLC: approved (roll call: all members voting aye). Staff: JD.

- Approve 2025 Sidewalk Assessment Project, Zone 7: approved (roll call: all members voting aye). Estimated construction cost: $162,763.15. Staff: Ben Claypool.

- Approve Union Road culvert replacement project (includes sanitary sewer extension): approved (roll call: all members voting aye). Estimated cost: ~$1,150,000. Funding: local option sales tax and sanitary sewer rental fund. Staff: Ben Claypool.

- Pass ordinance No. 3110 (zoning: swimming-pool regulations), third reading: approved (roll call: 5-1).

- Pass ordinance No. 3111 (garbage and refuse), third reading: approved (roll call: all members voting aye).

- Approve appointments to boards and commissions (consent calendar item 12): approved (voice vote).

- Approve fireworks-display permit for Jane and Displays Inc. / Sturgis Falls (June 26, 2025): approved (voice vote).

- Adopt resolution amending allowed consumer-fireworks dates to reflect state law (adds July 3 and Dec. 31); council retained July 5 allowance for this year: approved (motion carries).

- Adopt residential septic-to-sanitary-sewer conversion policy (resolution): approved (roll call: all members voting aye). Key provision: up to $5,000 reimbursement for qualifying connections; proposal to index payment to CPI failed on tied vote.

What happens next

Staff will finalize and execute the Lawn City LLC agreement, begin project procurement for sidewalk Zone 7 and the Union Road culvert work, and incorporate the council-approved land-use and MU-district amendments into the city—iles. The Community Development Department will distribute FY26 CDBG/HOME funds according to the adopted annual action plan. City staff will also pursue the state opinion regarding Iowa Code 20.3 as requested by a resident, and city legal staff will prepare any ordinance text required to align fireworks rules with the state change.

Council meeting notes: the meeting opened with roll call, public forum and staff updates including the Gateway River Park grand opening announcement for June 7 and a Main Street reconstruction update noting an upcoming closure for a roundabout. The meeting adjourned after the council handled consent and resolution calendars.