Rehab underway for troubled complex on SE side of Iowa City

Work to rehabilitate a troubled condominium complex on the Southeast side of Iowa City got underway Tuesday.  In the next year Southgate Development, with help from the city, will spend $5.75 million on major changes to the Broadway Condominiums, 1956-60 Broadway Street.

"It's really exciting to us," said Southgate Development Vice President Glenn Siders.  "We have a very high confidence level that we can turn this neighborhood around."

Iowa City landlord John Versypt was killed in October of 2009 while doing maintenance work inside one of the buildings.  Three people have been charged with first-degree murder in the case, but no one has been convicted.  Versypt's death is the most notable in a crime-filled history at the complex.

Southgate currently owns nearly 100 of the 108 units in the multi-building complex.  Sourcemedia Group has previously reported that the city will put $900,000 towards the project, under the agreement that Southgate rent at least half of the units to lower income renters.

"I think this is big because it gets right to the root of the community," said Mike McKay, Chairperson of the Iowa City Housing and Community Development Commission.  "When you have something that's nice and good it's more encouraging for people to keep it that way."

On Tuesday both city and state leaders took sledgehammers to old cabinets.  Crushing the cabinets served as a kickoff to the one year long project, Siders said.

Southgate also vowed Tuesday to keep a close eye on the property after the rehab is complete.

"Being on site more often, answering questions of tenants, answering questions of the neighborhood, and I think we can do that," said Property Manager Chris Villhauer.

In addition to extensive work on both the interior and exterior of the building, the project will update a security camera system to monitor the buildings perimeter.