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Kewanee council moves to pursue bank-held mortgage note on mobile home parks
Summary
Council passed a resolution expressing its intent to acquire First Secure Comm Bank’s mortgage note for local mobile home parks to enable foreclosure and potential city acquisition as a strategy to preserve and improve affordable housing; funding was proposed from the Economic Development Fund.
The Kewanee City Council unanimously approved a resolution (Bill 25-67) on July 14 expressing the City’s intent to purchase the mortgage note for the Kewanee Mobile Home Parks from First Secure Comm Bank.
City Manager Gary Bradley explained the mechanics: the City would acquire the bank’s position, enabling foreclosure and then an opportunity for the City to acquire and manage the properties with the goal of stabilizing and improving affordable housing for current residents. The Council emphasized this action does not itself transfer ownership of the parks; it is a step to obtain the bank position so foreclosure and subsequent acquisition could occur under local oversight.
Councilmember Komnick moved approval and Councilmember Baker seconded; the motion passed 5-0. The City Manager suggested financing the transaction from the Economic Development Fund and returning any recovered funds to that fund if monies are recouped in the process.
Council did not set a purchase price at the meeting nor did the resolution specify timelines for potential foreclosure or acquisition. Staff will pursue next steps consistent with the resolution and report back to Council as the process develops.
