Charles City council rescinds part of special assessment after large payment; deed sale of vacated Main Street to CBT Holdings moves forward

Charles City officials voted Jan. 25 to rescind a portion of a previously certified special assessment after receiving a negotiated payment from the successor owner of the affected property, and to move forward with the sale of vacated Main Street to CBT Real Estate Holdings once closing funds are received.

Staff told the council the city received $554,386.57 toward certified assessments that had been levied to recover water and utility charges at the property. Tyler explained that the original certifications to the treasurer were for $625,472 and $1,610, and that the negotiated settlement included a reduction of assessed penalties and a further reduction agreed to on the balance. "We felt it was probably prudent to bring it back to council after we received that payment," Tyler said during the meeting.

Brad (staff) summarized staff calculations and said the recovered amount represented roughly 85–88% of the certified total; he and other staff said the negotiated outcome was preferable to collecting nothing. Councilmembers asked for details about how penalties and interest were split and were told staff would provide a more detailed breakdown after the meeting.

Separately, council approved a resolution to convey the deed for vacated Main Street to CBT Real Estate Holdings, the successor to Pure Prairie’s lease option, after the company signaled it would exercise a previously granted option to purchase the vacated property for $34,000. Staff said utility easements will be reserved in the conveyance so the city can continue to maintain and access lines beneath the vacated right of way. "We will hold off on signing and recording that deed until we get that payment," staff said; closing was expected within several weeks.

The rescission and deed approvals were adopted by roll call. Council members present—Otto, Lumley, Noah, Pitman and Nighton—voted in favor.