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Buyer pitches rehab plan as council discusses rezoning and sale process for 806 East Erie Street
Summary
Council discussed how to dispose of city-owned property at 806 East Erie Street after taking possession; Brian Williams said renovating as a single-family home won't be financially viable and proposed converting the building to a fourplex. Council debated sealed bids versus auction, clearing the property 'as is,' rezoning and potential grant options with planning staff and SWIPCO.
The council held an extended discussion about the disposition of city-owned property at 806 East Erie Street after staff confirmed the city took possession roughly two weeks earlier. An interested buyer, Brian Williams, introduced himself and described recent nearby rehabilitation projects, saying a single-family resale would not recoup roughly $150,000 in estimated repairs and that converting the building to a fourplex would be the only financially viable option.
Council members and staff discussed practical issues and constraints: the property contains multiple kitchens and may have previously been configured as multiple units; the structure’s foundation was described as solid but the roof and interior would need significant work. Members asked whether back taxes, liens or environmental hazards existed; staff and attendees said taxes and liens should be cleared before sale and that the council could list the property "as is." Several members suggested consulting a realtor about setting a minimum bid.
Policy and zoning questions formed a central part of the exchange. Staff said planning and zoning discussions are scheduled (planning meeting on the 13th) and rezoning could move the parcel to central business or another classification that would allow duplexes or multifamily use; members discussed pursuing a Board of Adjustments path to allow a buyer to pursue a multiunit conversion. Council agreed it would be reasonable to wait for rezoning or Board-of-Adjustments review before final sale in order to preserve options and maximize value.
Members also discussed sale method and outreach: some favored an in-person auction to capture higher bids; others preferred sealed bids to avoid auctioneer fees. Council directed staff to list city properties on the municipal website, consider sealed bids or auctions, consult with a realtor about minimums, contact Southwest Iowa Planning Council (SWIPCO) about possible programs and to explore whether catalyst loans or urban-revitalization incentives might apply. Multiple members emphasized clearing out debris and selling the property "as is" while documenting conditions and restrictions.
The council did not adopt a formal sale motion during the meeting; instead members agreed on next steps: consult planning and zoning on rezoning options, engage a realtor or realtor advice on minimum bids and timing, post the property listing online, and bring a formal sale or auction proposal back to council at a later meeting.
