Keokuk City Council approves downtown TIF rebate agreement, adopts rezoning and lifts hiring freeze

Keokuk City Council on Monday approved a package of actions that included a development agreement with Main Street Kak Inc., final adoption of a conditional rezoning ordinance to M2 (heavy industrial), termination of a temporary hiring freeze, new 2026 aquatic center rates and awards of demolition contracts for two unsafe residences.

The council opened a public hearing on a proposed development agreement with Main Street Kak Inc. that, as presented, would rebate 90% of eligible incremental taxes from the city's tax-increment financing district to reimburse the developer over up to five taxing years. Staff noted certain levies are state-exempt and said the agreement estimates a maximum rebate of $75,000 but is likely to be lower; payments were described as likely to begin in fiscal year 2028–29 based on the 2027 assessment. The mayor said no written objections were received; the council then voted to approve the resolution authorizing execution of the agreement.

Council members also completed the rezoning process for a conditional map amendment to M2 heavy industrial. After a second-reading roll call and discussion about site conditions and storage visibility, the council voted to waive the third reading and gave final approval to adopt the ordinance amending the official map as conditioned. Council and the property owner discussed requirements for enclosing vehicles and possible fencing; staff advised the owner must still pursue a special-use permit with the board of adjustment and provide a legal description for recording.

On personnel policy, council considered lifting a hiring freeze that had been put in place during the budget process. Staff explained the proposed resolution would allow hiring only for positions funded in the next fiscal-year budget, not for positions budgeted only in the current year. Members discussed immediate needs at the wastewater plant and seasonal mowing positions; staff said the parks department expects to hire about four seasonal workers this year instead of the historical six to seven. After discussion, the council approved the resolution to lift the hiring freeze, enabling departments to fill positions that are budgeted next year.

The council set 2026 aquatic center fees on a resolution recommended by the Park and Recreation Board. Staff listed the rates approved by the council: daily entry $4; single membership $80; family membership $165 (limit five family members, $10 for each additional member); caregiver/grandparent add-on $25 with a single or family membership; and pool-party fees ranging from $200–$350 depending on guest count with a $50 non-refundable deposit. Council approved the rate schedule as presented.

Council also accepted low demolition bids and authorized the mayor to sign contracts for two properties posted unsafe to occupy: 1016 High Street and 1118 Blondo. Staff said both structures are considered abandoned and described structural failure and repeated nuisance conditions. The low bids presented for the work were accepted; council discussed asbestos and lead-abatement rules and noted contractors often include disposal fees in their bids, while in-house city demolition would require certified abatement and could present liability and cost differences.

In staff reports, city staff described two brownfield/demo projects that will go out for bids under separate grants and cautioned that contaminated soil disposal could be a major cost driver. Staff said contaminated-soil disposal was estimated at $55 per ton and that a project estimate referenced roughly 40,000 tons of contaminated soil — an amount that, at that unit price, would total about $2 million — and that grants would be the primary funding source but that local option sales tax might be considered if bids exceed grant funding. Staff also noted the water department has identified about 400 residences with lead service lines and described federal programs offering 50% reimbursement for line replacements; staff said the city will explore options to encourage property owners to use the funding and consider whether local funds could reduce remaining costs.

The meeting opened with the Pledge of Allegiance and a mayoral report that included housing-rehab planning work with regional partners. The mayor recognized Officer Phillip Dunlap as the Keokuk Police Department’s 2025 officer of the year "for proactive policing, teamwork, and community engagement," and the council offered congratulations. With no further business, the council adjourned.

What happens next: the development agreement and ordinance are in place as approved; departments may proceed with hiring for positions funded in next year's budget and staff will proceed with bids and grant work for brownfield demolition and contaminated-soil removal.