Johnston council approves multiple infrastructure contracts, TIF amendment and easement; rezoning item withdrawn

The Johnston City Council on April 14, 2025 approved a string of infrastructure contracts and a tax-increment financing amendment, and granted a gas-pipeline easement, while a separate rezoning request was withdrawn by the applicant.

The council approved plans and awarded construction contracts for multiple public-works projects, including the Northwest Cedar Hill Drive water-main project (segments B and C) and the Little Beaver Creek sanitary-sewer extension (segment B). Staff told the council engineers' cost estimates for the larger water-main and sewer projects were roughly $9 million and $8.7 million, respectively, and the low bids came in substantially below those estimates. Councilors also approved a Merle Hay Road water-trail access project and an overlay/overlay-related amendment to the East Central urban renewal plan that increases the budget for certain Merle Hay corridor improvements.

Why it matters: the projects add or upgrade water, sewer and trail access in parts of Johnston and use tax-increment financing (TIF) and city capital funds. Several contracts were awarded at prices well under engineers' estimates, a detail council members noted during the meeting.

Most important votes and contract awards

- Northwest Cedar Hill Drive water main (segments B and C): council opened the public hearing, received three bids for segments B and C and approved the project. The engineer's opinion of probable cost was $9,029,107.25; staff reported the low bid from OnTrack Construction at $6,704,779 (about 25% under estimate). The council approved the related resolutions to adopt plans and award and approve the contract. (Resolutions 25-93, 25-94, 25-95; motion passed.)

- Little Beaver Creek sanitary sewer extension (segment B): council approved plans and awarded the construction contract. The engineer's opinion of probable cost was $8,655,471; staff reported the low bid from S. N. Hentges and Sons Inc. at $6,250,000 (about 27% under estimate). (Resolutions 25-96, 25-97, 25-98; motion passed.)

- Merle Hay Water Trail Access Project: staff said three bids were received; one was deemed unresponsive. Engineers' estimate was reported as $983,008.25; staff recommended awarding to a local bidder. Council approved the project and adopted the resolution. (Resolution 25-90; motion passed.)

- East Central TIF / Merle Hay corridor amendment (Amendment No. 15): the council held a public hearing and approved resolution 25-101 to amend the East Central TIF urban renewal plan, increasing the project budget for planned improvements (the Northwest 60 Second Avenue scope/budget and a Merle Hay overlay project). The amendment authorizes up to $11,000,000 for the 60 Second Avenue improvements (up from $9,000,000 previously) and up to $5,000,000 of increment for a Merle Hay overlay project between NW 50 Fifth and NW 60 First.

- Gas pipeline easement to MidAmerican Energy: council conducted a public hearing and approved resolution 25-104 to grant a gas-pipeline easement on Outlot Z in Johnston Town Center (the line runs underneath a parking area to serve a neighboring hotel). (Resolution 25-104; motion passed.)

Ordinances and policy readings

- The council opened and approved first consideration of amendments to the Johnston Building Code and Johnston Fire Code (ordinances 11-37 and 11-38). Staff said the changes remove overly restrictive sprinkler thresholds for commercial buildings and revise private on-site fire-hydrant requirements to align with the base code and appendices.

- The council approved second readings for ordinance 11-35 (water/sanitary/stormwater/solid-waste account policies) and ordinance 11-36 (TIF-related ordinance for the Dragonwood urban renewal area). Staff reported no public comments on those items and asked to waive a third reading on 11-35, which the council approved.

Administrative and other business

- The council approved claims totaling $1,155,147.92.

- A rezoning request (ordinance 11-34, rezoning 4.8 acres to R-2 low-density mixed residential) was the subject of extended public comment and council discussion. The applicant's representative indicated the developer would prefer to withdraw that rezoning application at this time; the council closed the public hearing and no action was required on ordinance 11-34 after the applicant withdrew it.

Votes at a glance

(Each motion listed below was moved and seconded; vote tallies reflect the roll call in the meeting record.)

- Ordinance 11-37 (first consideration) — approved (vote: unanimous). Provenance: public hearing opened at 07:55. - Ordinance 11-38 (first consideration) — approved (vote: unanimous). Provenance: public hearing opened at 07:55. - Resolution 25-90 (Merle Hay Water Trail Access, adopt plans/award) — approved (vote: unanimous). - Resolution 25-93 / 25-94 / 25-95 (NW Cedar Hill Drive water main — adopt plans, award, approve contract & bond) — all approved (votes: unanimous). - Resolution 25-96 / 25-97 / 25-98 (Little Beaver Creek sanitary sewer extension — adopt plans, award, approve contract & bond) — all approved (votes: unanimous). - Resolution 25-101 (East Central TIF amendment / adopt amendment No. 15) — approved (vote: unanimous). - Resolution 25-104 (grant gas pipeline easement to MidAmerican Energy) — approved (vote: unanimous). - Ordinance 11-35 (second reading) — approved; council waived third reading and ordered publication. - Ordinance 11-36 (second reading) — approved.

What council members and staff said

Councilors and staff repeatedly noted the favorable bid environment: several council members highlighted that low bids came in well under engineer estimates, a point staff confirmed during project presentations. Josh (urban renewal staff) and Matt (public works/engineering staff) answered technical and timing questions about the projects; staff told the council the Merle Hay Water Trail access project expects substantial completion in October of the construction year.

What’s next

Contracting, preconstruction coordination and construction schedules will proceed under city staff oversight; several kickoff meetings and neighborhood meetings were mentioned for ongoing projects. The meeting concluded with a closed-session item on a real-estate purchase, scheduled under Iowa Code 21.5(1)(j).