March 29, 2024

Sonntag seeks to sell land, council approves

Despite Tim Ostroski’s plea to vote no, a resolution to amend a development agreement by and between the City of Creston and Sonntag Development LLC passed unanimously at Creston City Council’s regular meeting Tuesday.

“I implore the council to vote no,” Ostroski, executive director of Southern Iowa Council of Governments (SICOG), said during open forum.

Ostroski said the land in question, at the corner of West Adams Street and Cottonwood Road, was purchased for “around” $390,000 (northern portion) and $95,000 (southern portion) by the city several years ago.

“The intent of the development agreement was to entice a developer to build housing units in the area and not to enrich himself by the sale of city land and city housing,” said Ostroski.

The original agreement between the City of Creston and Sonntag was that Sonntag would buy the land, all five lots, for $5 and would build 24 housing units.

“The agreement said, if 24 units, or 12 buildings, are not completed by December 2016, the developer was in default and the city has revisionary rights to reclaim lot four, five and six,” said Ostroski.

As of Tuesday, the city had not evoked this right and still had the ability to reclaim the land with the exception of lots one and two.

“With an approval by the council with this resolution, you are enriching the developer without benefiting the taxpayers of the community and the developer has not achieved any of the goals he said he was going to at the time,” Ostroski said.

Ostroski argued that it makes “more sense” for the city to reclaim the land and sell it, as it has done in the past to recover funds for the use of city projects.

“Should you allow a developer to carve off city property for personal gain?” asked Ostroski.

Ostroski said the original proposal by the developer was to construct 26 structures totalling 54 individual units, a planned unit development that excluded single-owner occupied structures, and the developer would be obligated to construct 24 units, or 12 structures by the end of 2016. To date, eight structures, or 16 units have been completed.

“Sixty-six percent of what was to happen has been accomplished,” said Ostroski. “Is that acceptable to the city?”

After a motion to approve the resolution was moved by Rich Madison, Ward 2 representative, and seconded by Marsha Wilson, Ward 4 representative, Gabe Carroll, who represents Ward 3, requested a discussion.

Mike Taylor, city administrator said the city has made the decision, twice, to make payments to Sonntag based on progress made.

“We have honored that part of it. And, a couple meetings ago, we had the resolution in there that said we wanted to proceed with amending the agreement,” said Taylor.

Taylor said there is nothing wrong with Sonntag selling the land.

“I can’t tell you for sure if all of the numbers that were quoted on buying the land are ... accurate ... he has made an investment of over $5 million ... He’s paying taxes on over $5 million invested. He’s not paying taxes just on the buildings he has built. He’s paying on what he agreed to in the developer agreement, which is $5 million ...” said Taylor.

Taylor said he didn’t think Sonntag felt like the condos would be as hard to get accepted into the community as they have been.

“But, I don’t think he’s given up,” said Taylor.

In other city council news, the council:

• approved an easement request to place parking spaces on city right-of-way at 417 Wyoming Ave.

• approved an easement request to place a fence on city right-of-way at 815 N. Sycamore St.

• approved a noise event application requested by Carey Lynam from 5 to 11 p.m. Saturday at 807 E. Montgomery St.

• approved the assessment of nuisance abatement for removal of a dangerous tree, 1018 N. Spruce St.

• set a bid date and public hearing for Waste Water Treatment Plant Improvement Project. The bid date is Oct. 18 and the public hearing is Oct. 23.

• approved to special assess nuisance abatement charges due to non-payment by property owners.

• approved pay application no. 3 of $47,753.21 to Bluffs Paving and Utility Co. for work completed on Division 1-West Howard Street Project.

• approved pay application no. 4 of $146,729.88 to Crain Construction for work completed on Division 2- Chestnut Street Project.

• approved the McKinley Park Aquatic Center (MPAC) group making application for a Dekko grant.

• approved proposal from Calhouns-Burns and Associates to conduct bridge structure inspections.

• authorized the mayor to sign a DNR Wildland Fire Grant application for the Creston Fire Department.

• approved Iowa DOT Federal-Aid agreement for replacement of Sycamore Street Bridge over Hurley Creek.

• set a public hearing 6 p.m. Oct. 2 for the vacation and sale of a portion of Walnut Street adjacent to 119 N. Walnut St. to Tom and Jessica Spencer for $150, plus all associated publication, recording and legal fees.

• set a public hearing 6 p.m. Oct. 2 for the purpose of amending the Code of Ordinances of the City of Creston, Iowa, 1996 Chapter 137 – Vacation and Disposal of Streets.