North Liberty approves land deal with credit union

The North Liberty City Council voted Tuesday night to approve the purchase and transfer of land for a new University of Iowa Community Credit Union (UICCU) building. The council voted three to one, with one abstention, in favor of the project.

The City will purchase 64 acres of land on the west side of the city, near I-380 from North Liberty LLC for $11 million. Of the acquired land, 24 acres will be transferred for one dollar to UICCU by 380 Development Group. UICCU will then construct a 100,000-square foot member support office, that is to be valued at $20 million.

The area is to be rezoned from multifamily residential use to commercial use.

The city will borrow $11.3 million from UICCU to pay for the land. It plans to pay back the purchase price through revenue generated by increased property tax on the facility.

Councilor Colleen Chipman said that the project will improve the North Liberty economy by generating jobs and increasing sales at local businesses. According to data from the Iowa City Area Development Group, the project will generate 400 direct jobs, 230 indirect jobs and 324 induced jobs.

The City and 380 Development Group have not made plans for the remaining 40 acres of land that will not be used by UICCU.

The North Liberty Area Development Corp. (NLADC) planned to participate in the project until it pulled out earlier this month due, in part, to the responsibility of the future transfer and development of the remaining 40 acres.