Newton approves 50-year lease, $1.5 million parking investment to secure Delco IV mixed-use project
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Summary
Newton City Council unanimously approved an Economic Development Agreement and long-term lease with Delco IV, LLC on April 1, 2025, committing the city to a $1.5 million investment in parking and leasing city property for 50 years (renewable) to support an estimated $24 million mixed commercial/multi-family project.
Newton City Council voted unanimously April 1 to approve an Economic Development Agreement and a 50-year lease with Delco IV, LLC to support a proposed mixed commercial and multifamily project at the former Corriher Implement Company site in downtown Newton.
City Manager Sean Hovis told the council the developer is proposing roughly 102 residential apartments, a restaurant and associated amenities, and that the full project would equate to at least $24 million in capital investment. Hovis said the city will acquire an adjacent U.S. Postal Service parcel and invest an estimated $1,500,000 to develop city-owned parcels and adjacent street parking to provide surface parking for the project.
Under the approved lease, the City will rent the identified parking parcels to Delco IV for an initial term of 50 years with an option to renew for another 49 years; the rent is set at $12 per year. The Economic Development Agreement is conditioned on the city’s successful acquisition of the USPS parcel, Hovis said.
Roger Young, representing Delco IV, thanked the council and described the developer’s goals. "There's a lot of vibrancy and synergy here and our team hopes this project can be a catalyst for growth," Young said, adding that his team intends to be "good neighbors" and a positive asset to Newton.
Hovis told the council several of the proposed jobs would pay at or above the county average and that the project is expected to increase ad valorem tax revenue and population in the area. After a public hearing with no members of the public addressing the item, the council moved and approved both the Economic Development Agreement and the Real Estate Lease Agreement.
Council action: The motions to approve the City of Newton–Delco IV Economic Development Agreement and the Lease Agreement were made, seconded and approved unanimously. The agreements and related ordinances are on file in the Office of the City Clerk.
What happens next: Staff will complete acquisition steps for the USPS parcel and proceed with lease execution and parking improvements per the terms of the agreements. Any material change to project scope, funding or schedule would be brought back to council per the contract terms.