Legal battles delay Chauncey, add cost to project

IOWA CITY - It was in Jan. 2013 that local developer Marc Moen's Chauncey tower was chosen by the Iowa City Council as the preferred project for city-owned land just east of downtown.

After three years, Moen's building has been debated and discussed, vetted and scaled down, voted on and approved and challenged twice in court.

Ground has yet to be broken on the roughly $49 million tower.

On Tuesday, the Iowa City Council will vote on setting yet another public hearing on the building - this time for a requested amendment to the Chauncey's redevelopment agreement, which could push the project's completion date back even further.

Moen said formal objections filed in court against Chauncey-related rezonings - one filed this spring by the neighboring Trinity Episcopal Church and another filed in 2013 by citizen group Iowa Coalition Against the Shadow - have caused considerable delays, and therefore added costs to the project.

'I conservatively estimate damages caused by the delay at approximately $1 million,” Moen said in an email. 'I am certain the appellate court will ultimately affirm the District Court's decision, but the delay in getting to that point will cause damages far greater than those we have incurred to date. Given the normal length of processing an appeal, I estimate damages in the $2.5 million range if the project is able to go forward at that point and potentially much more if the delay is fatal to the project.”

Earlier this month, Trinity's vestry filed a notice of appeal of the October dismissal of the church's lawsuit against the city over the council's June rezoning to allow the Chauncey.

In April, Iowa Coalition Against the Shadow's lawsuit was dismissed, but that group also has appealed.

Proposed as a 15-story mixed-use tower, the Chauncey would include lower-level parking, apartment units, two movie theaters and a bowling alley. The council has approved $14.2 million - nearly $12.1 million in tax increment finance rebates - in financial aid for the project.

With the Chauncey shrouded in uncertainty, Moen Group's attorney Patrick Ford, with Leff Law Firm, has requested an amendment to the project's current deadlines, including the sale of the property, start of construction and project completion date.

If the proposed amendment is approved, the Chauncey would be required to start construction within one year of the 'trigger date,” which would be the date when a final ruling is made on the Trinity appeal, according to city documents.

As Moen has not been the cause of the project's delays, city staff have concurred with the amendment and on Tuesday, the council will vote on setting a Dec. 15 public hearing on the matter.

Council member Jim Throgmorton earlier this month recused himself from any future Chauncey decisions, citing a perceived conflict of interest - due in large part to Trinity's appeal - and will not vote on the amendment.

While both appeals continue to move toward an eventual ruling, officials with Trinity noted that conversations between the vestry and Moen remain open, which is a positive step.

'Trinity continues to seek a resolution that will work for all sides, and will exhaust all alternatives to continuing with the appeal. The parish is heartened by recent expressions by Chauncey proponents of willingness to meet. Trinity looks forward to reaching an amicable resolution that works for all,” vestry member Melissa Murphy said in a November news release following the appeal.

Moen said he too hopes for productive conversations with Trinity.

'I am looking forward to that meeting and the opportunity to discuss ways in which we can be a good neighbor to Trinity,” he said.

Despite what has become the ongoing saga of the Chauncey, Moen said he remains steadfast in his desire to see the project come to fruition.

'We really just want to be a good neighbor and focus our attention on delivering projects that exceed what we have promised. It has always been our goal to enhance a sense of place and community. We are committed to Iowa City and we have invested and reinvested exclusively in downtown Iowa City for decades,” he said.