North Liberty credit union project will proceed after judge lifts injunction

North Liberty's hopes to buy land for a new University of Iowa Community Credit Union building can again start moving forward after a judge lifted a temporary injunction on the plan this morning.

Judge Paul Miller ordered the injunction lifted after concluding the plaintiffs “didn't meet their burden of proof.”

The land deal has been a source of controversy in North Liberty in recent months.

In October, the City Council approved the purchase of 64 acres of land near Interstate 380 for $11.3 million, to be funded by urban renewal bonds from the city. The city proposed selling 24 acres for $1 through the 380 Development Group to the credit union, which would build a $20 million, 100,000-square-foot office.

The development group would then mortgage the remaining 40 acres to the credit union as security for the repayment of the bonds, according to the original order.

Residents and land owners in the area have taken issue with how the deal has unfolded and want to slow it down so it can be considered more thoroughly. They also contend 380 Development Group is a sham corporation set up by the city to transfer the land to the credit union for less than fair market value, according to the original order.

The city denied those charges and said the 380 Development Group is an independent corporation that the city did not create or control and is acting only as an economic development partner with the city.