Iowa City Council OKs first reading of rezoning for 84-unit north side apartment complex

IOWA CITY — The Iowa City Council gave its approval Tuesday on the first reading of the rezoning of 5.49 acres on the north side of Iowa City to allow for development of an 84-unit apartment complex.

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 — was required for the rezoning to be approved. The measure passed 6-1.

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 entire 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 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 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.

In order to address pedestrian access concerns, the council directed city staff to investigate the feasibility of a sidewalk or trail connecting Happy Hollow Park to the development.

"That's not something we need to hold up this rezoning in order to do ... let's look into it and find out the feasibility of it so that we can try and make this connection ..." council member Megan Alter said about adding a trail or sidewalk.

Council members who voted in favor of the rezoning also brought up that the rezoning would get rid of the R-3B zoning on the property, which is a zoning code from the 1970s that’s no longer used.

“And I think that the key for me is the fact that we have these R-3B zones that we have little or no control over, that we could end up with really, really bad things with absolutely no control, no sidewalks, no storm sewers, no real restrictions on setbacks and screening. And I think that this is an opportunity to make that really bad zoning go away,” said council member Josh Moe.

Council member Mazahir Salih was the lone no vote on the rezoning.

Developer looking to sell property

Real estate developer Tracy Barkalow’s TSB Holdings 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 listed for $9 million. The rental properties are all full until July 23, 2026, according to an email Barkalow sent to the city council.

“This site could be a great solution or first step for many reasons to immediately address the ongoing affordable housing needs in Iowa City. At the same time, it would resolve the long complicated zoning and legal matters related to these properties,” Barkalow wrote to the 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 before Tuesday’s zoning vote.

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

Next steps

The city council will have to vote on the rezoning ordinance two more times before it is approved. City staff will return to the council once design options for the sidewalk have been evaluated.

Comments: megan.woolard@thegazette.com

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