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Council postpones repayment demand so new owner may finish 24 apartment units
Summary
Council voted to postpone enforcing a $60,001.08 reimbursement tied to a 2018 development agreement after staff recommended allowing the property to be completed under new ownership rather than demanding immediate payment.
Oskaloosa City Council on Oct. 6 voted to postpone requiring payment of $60,001.08 tied to a 2018 private development agreement for property at 1405 B Avenue West.
The original agreement required the developer to complete 60 apartment units by Sept. 1, 2023; only 36 units were finished. The agreement requires a proportionate reimbursement of city costs if the developer fails to complete the project. Staff told the council that the Burrells recently signed an agreement to reacquire the property and plan to complete the remaining 24 units; staff recommended amending the development agreement to extend the construction completion deadline so the housing can be finished rather than collecting the settlement immediately.
Council discussed three options: require the $60,001.08 payment now; extend the payment deadline to Dec. 15; or prepare an amendment to extend the construction completion deadline (staff recommendation). Council voted in favor of postponing repayment and directing staff to negotiate a timeline and agreement terms that aim to complete the remaining units.
City staff noted the housing study shows a need for about 700 rental housing units in the community and estimated each of the additional buildings on the property would generate roughly $15,000 per year in property tax revenue. Councilors said they preferred additional housing production to collecting the small settlement now, though some members expressed concern about developer capacity and timeline uncertainty. Staff said any extension would return to council for formal amendment and approval.
Next steps: staff will negotiate an amendment with the buyer (reported as Robert and Amber Burrell in the original agreement) that includes a definitive construction and completion timeline and report back to council for formal consideration.
