Final rezoning vote for 84-unit Iowa City north side apartment complex deferred

IOWA CITY — The controversial rezoning of a northside Iowa City property, which would allow for an 84-unit apartment complex, has been delayed once again after the city council unanimously voted to defer the third and final consideration to a meeting later this month.

The rezoning request has been controversial because of neighbors’ concerns and because of a legal history between the city and the developer, TSB Holdings, that resulted in a 2018 Iowa Supreme Court ruling.

A petition of protest to the rezoning, which can be submitted by property owners in the proposed zoning area, was filed. As a result, a supermajority — six of the seven members of the council — has been required for the rezoning to be approved.

The first two readings of the rezoning were approved by council in May. The third and final reading had been deferred to Aug. 5 on the request of the developer so that the final plat — or construction plan — could be approved at the same meeting. At the time of the deferral request the developer was ironing out some of the finer details of the site plan, such as sidewalk access.

As a result, the final plat carried a different name than the rezoning in official city documents and was not in the meeting’s consent agenda. City Attorney Eric Goers noted that this process was “highly irregular” but required, since the rezoning request must be approved before a final plat can be adopted.

Council member Oliver Weilein made the motion to defer, citing confusion with the change in process and a need to continue to meet with community members before the final vote.

“I would like to, in an informed manner, be able to go and read through that and meet with folks before making a vote on this … I wouldn't feel comfortable at this moment having gone through because of my own admitted ignorance when it comes to this, because this is highly irregular,” Weilein said at the city council meeting.

Apartment complex plans

Multiple north side residents have expressed concerns about the size of the development compared with the rest of the neighborhood, increased traffic, and pedestrian access.

The proposed complex, which would be built north of Happy Hollow Park between Governor and Dodge streets, includes two buildings, each with 42 units, and offers a mix of market-rate one- and two-bedroom units.

The buildings would be about 236 feet long, which those opposed to the rezoning pointed out is the about same size as some city blocks. The development also would include a surface lot and underground parking.

Plans call for demolition of an existing vacant office building and two single-family homes along Governor Street. Along Dodge Street, there are two existing duplexes and two multifamily residences. While they would remain, the development plan would convert one of the duplexes to a single-family home to adhere to zoning standards.

Rezoning subject to multiple other delays

The rezoning request, for which the city is acting as a co-applicant, has been ongoing for months. The Planning and Zoning Commission voted 6-1 in favor of rezoning in February.

Since then, the city council has deferred the first consideration of the rezoning twice. The first time was due to a council member’s absence and the second time was to confer with the Planning and Zoning Commission after Mayor Bruce Teague said he had determined there would not be enough votes for the rezoning, though a formal vote was not taken.

Later, the first two readings of the rezoning were approved in 6-1 votes, with council member Mazahir Salih vote against the rezoning both times.

Developer looking to sell property

TSB Holdings’ Tracy Barkalow, a real estate developer, has suggested he would like to sell the property to the city to use for affordable housing.

The property — including the vacant office building, two single-family homes, two duplexes and two multifamily residences — is now listed for sale for $3.15 million. The rental properties are fully leased through July 23, 2026, according to an email Barkalow sent to the city council.

“TSB Holdings LLC plans to sell the entire site no matter what the outcome of the rezoning inclusive of all the existing properties anyway. TSB Holdings LLC felt that the City of Iowa City might as well take control of the site to avoid more zoning or legal issues in the future with our company or a new owner,” Barkalow wrote to the city council in May.

City officials have not said whether they are interested in buying the property from Barkalow.

Any new owner of the property would need to resubmit construction plans to the city if development plans change.

Next Steps

The city council is scheduled to vote on the third and final reading of rezoning at its next meeting Aug. 19.

Comments: megan.woolard@thegazette.com

Get a weekly roundup of Johnson County news by signing up for my Johnson County Update newsletter.