Proposed University Heights development scaled back

UNIVERSITY HEIGHTS - The developer of a proposed condominium and retail space on Melrose Avenue in University Heights has scaled back plans after city leaders capped public funding at $4 million.

One University Place was slated as recently as June to have a seven-story condo complex, but developer Jeff Maxwell submitted a new proposal Aug. 6 shrinking the building to four stories. A one-story commercial building near Melrose remains part of the plan.

Some University Heights residents opposed to the larger project were pleased by the downsizing.

'I think it's moving in the right direction,” said Pat Bauer, a University of Iowa law professor.

Developing the 5.3-acre site now occupied by St. Andrew Presbyterian Church has been controversial. The November 2013 City Council elections pitted candidates who favored Maxwell's earlier plans with those who wanted more modest growth.

St. Andrew, which will move to Camp Cardinal Boulevard, has agreed to sell Maxwell the land for $4.3 million.

Maxwell's initial plan was a $44.9 million development that included a five-story residential building in the rear and a three-story mixed use building along the street. The residential building would have had two levels of underground parking and the commercial space one level of parking underground.

Council Member Jim Lane, chairman of the group's financial committee, said Tuesday the city can only bond for $5.3 million. In order to save some of that bonding potential for an emergency, the council informally decided the maximum that could be given to One University Place was $4 million, he said.

University Heights hired the National Development Council for $14,000 to analyze the development's financial viability. The New York City-based non-profit community development organization has a mission of 'increasing the flow of capital to underserved urban and rural areas.”

'They understand the city can only do so much,” Lane said. 'They've been encouraging him (Maxwell) to come up with a plan that fits the city's budget.”

Maxwell declined to comment on the proposal Tuesday. The overall cost of the new proposal has not yet been released.

The council likely won't weigh in on the proposal until October or November, Lane said.