Perry City Council terminates KM Baxter agreement, extends Region 12 oversight and advances zoning changes amid calls for housing

Perry City — The Perry City Council on Monday voted to terminate a development agreement with KM Baxter Investments LLC after the private business tied to that agreement ceased operations, and approved related land-use actions including a contract extension for Region 12 to continue oversight of a CDBG upper-story grant for the Nudgers property.

Council approved Amendment No. 2 to the local planning and administrative contract (BG2223) with Region 12 to extend oversight for the CDBG-funded upper-story work at 1306 2nd Street through May 31, 2026, a staff member said. The council also voted to end the development agreement with KM Baxter Investments LLC after the business that had occupied the property (AcuJet) went out of business and could not meet the job-creation and improvement conditions in the agreement.

Why it matters: The actions clear a path for the city to pursue replacement uses for the property and to keep federally funded building-improvement work on track under Region 12 oversight. Council members said the moves were procedural steps allowing staff to solicit new proposals for the site.

Public input preceding the votes emphasized a push for housing and infrastructure to support local economic growth. "We approved a big apartment complex across the Play Station," Perry resident and water board member John Weker told the council, urging attention to infrastructure at potential housing sites on Iowa Street, 16th Street and West Third Street. Weker said growth tied to recent industrial expansions — including a new JBS facility cited in public remarks — would help the city's tax base and jobs picture.

Police Chief Jim Archer, speaking as a resident, said many recent college graduates and early-career workers earn roughly $42,000–$45,000 a year and that the proposed housing types could serve that income cohort. "Those are the type of people that this kind of housing could certainly help," Archer said.

A city official identifying themself as the public works director noted that added residents generate recurring revenue streams — garbage, sewer fees, sales taxes and per-student school funding — and urged council to weigh infrastructure capacity when approving new projects. Resident Miss Baron said she supports nearby developments and argued new projects can spur private property improvements in surrounding neighborhoods.

What the council approved: The Region 12 contract extension (no additional cost; extends oversight through May 31, 2026) and the resolution terminating the KM Baxter development agreement. The council also proceeded with zoning code readings later on the agenda that amended Chapter 165 to permit new uses on specified parcels (see separate ordinance coverage). Roll-call votes on the development items were recorded as affirmative by the council members shown during roll call.

Next steps: Staff will pursue replacement proposals for the former AcuJet property and continue work under the Region 12 contract timetable. Several zoning amendments were adopted in later ordinance readings, which complete the council's action on the items presented at this meeting.