Townhomes planned where ‘gentleman’s agreement’ once called for church

CEDAR RAPIDS - An unkept promise is testing the faith of a Cedar Rapids family who sold an adjacent 10 acres of farmland at a discounted price years ago based on a gentleman's agreement with a church that it would build a new house of worship there.

The land, which was sold in 2002 by Russell and Marge Morris and changed hands twice more between three churches, now is proposed for a $9 million rental townhome development, The Commons on Blairsferry, 4480 Blairs Ferry Rd. NW.

Marge Morris, 82, and several neighbors are pushing back, saying they were promised a church - not three-story apartments - next door to their single family homes on the outskirts of Cedar Rapids.

'We lowered the price because we are Christian church people,” said Marge Morris, whose one-story home on Blairs Ferry sits feet away from her old land. 'We had an opportunity to sell it to developers, but we didn't want to do that. We thought it was going to be a church, but we didn't get anything in writing.”

Now, developer Genesis Equities plans to close the deal on the land purchase from Calvary Community Church pending rezoning by city officials, and then erect the complex that includes 50 apartments. A public hearing and likely the first of three votes is scheduled for Nov. 15.

With 100 percent opposition from adjacent neighbors, the rezoning needs three-quarter majority support from the nine-member City Council. The City Planning Commission, an advisory body to the council, initially rejected the rezoning by a 6-1 vote. But in an unusual move a few weeks later, the commission reconsidered a slightly different version and favored it 4-3.

The new townhome plans have been troubling to the Morris family because they thought an agreement with a church was solid.

Dan Morris, son of Marge and Russell Morris, who died in 2014, said his parents liked the idea of being between two churches. Galilee Baptist Church is located immediately to their west, while the farm field is adjacent to the east.

'They didn't think they needed to get the agreement in the paperwork because they were dealing with a church,” Dan Morris said. 'It's a really dirty deal. Churches are supposed to be holy. They are not supposed to be liars and cheats and connivers.”

The Morrises moved into their home in 1977 and Russell farmed the fields for years. Steve Nelson, a lawyer and a fellow parishioner at Lovely Lane United Methodist Church where they all worshipped, told them in the early 2000s that the Iowa Methodist Conference was interested in their land for Crosswinds United Methodist Church, Marge Morris said.

The Morrises already had rejected developer inquiries, but were getting older and thought they could use some extra income. And they liked the idea of helping out fellow churchgoers.

Russell Morris negotiated a deal for thousands under value because the church had limited finances, and later agreed to make it easier by selling the land on contract when bank financing fell through, Morris said.

'He thought it was the right thing to do,” she said.

Linn County Recorder records show they signed a contract for $140,000 with $50,000 of it up front and $500 monthly payments with 5 percent interest in April 2002.

After the sale, two main financial contributors supporting the new Crosswinds left the area, and building plans fizzled, Morris said.

Crosswinds could no long support itself and merged with Salem United Methodist, said the Rev. John Louk, who became pastor at Salem in 2008. In August 2004, Salem bought the property, fulfilling the contract with the Morrises, and took over the deed, according to Linn County Recorder documents.

Salem intended to honor the pact and build a church or a retreat, which had the blessing of the Morrises. But then Salem's downtown Cedar Rapids property was destroyed in the 2008 flood. It undercut the plans and instead Salem demolished its location at 225 First Ave. SW. and relocated in 2010 to 3715 33rd Ave. SW.

Years later, Calvary approached Salem wanting to build and said it was ready to buy, Louk said. After meeting internally with church leaders, Salem agreed to sell the land, Louk said.

'We were trying to be faithful, and told them about our gentleman's agreement it was to be used as a church,” Louk said, noting it was verbally communicated. 'Obviously, there was nothing legally binding about that.”

Calvary Community Church purchased the property for $200,000 in 2014, according to Cedar Rapids Assessor records. Soon after, a sign with a cross was staked to the ground declaring 'the future home of Calvary Community Church.”

Nearby residents, and Louk, too, were surprised when apartment plans surfaced. They had been told before building within the past four years the land was going to be a church, they said.

'It is frustrating,” said Ryan Koester, who'd see the apartments tower over his Casey Lane home about 75 feet away. 'A church would be a good neighbor.”

'You'll have headlights shining into the backs of people's homes,” said neighbor Jason Schares. ‘They offered to put in trees and shrubs. That might help in 30 years.”

Several messages went unreturned from Calvary pastor Jeremy Higgins, who signed the mortgage for the land in 2014, according to Linn County Recorder records. Calvary is now located at 327 35th St. NE.

Hannah Kustes, with Genesis, said the company has a contract with Calvary to buy the property pending approvals from the city. She said she was caught unaware when a neighbor explained the assumption the land was reserved for a church. However, Genesis researched the property and found no such restriction.

'It is unfortunate that the neighboring property owners did not confirm this restriction before their purchase, especially with the knowledge that they were purchasing adjacent to annexed but undeveloped ground and were relying on this information,” Kustes said.

She said she 'sympathizes” but doesn't think it should stop the land from being 'marketed based on highest best use.”

Marge Morris said she's not sure where or why the agreement stopped being honored, but rather than anger she said she feels a little sad.

'I just know it's going to ruin my morning sunrise,” she said. 'I won't be able to see it.”