Tracy Barkalow looks to sell north side Iowa City property

IOWA CITY — Real estate developer Tracy Barkalow’s TSB Holdings wants to sell a 5.49 acre property on the north side of Iowa City — now involved in a controversial rezoning application — to the city to use for affordable housing.

The property, at 902 N. Dodge St., is listed for $9 million. It includes a vacant office building, two single-family homes, two duplexes and two multifamily residences. 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, as a co-applicant with the city, is asking the property be rezoned to high density single family and medium density multifamily zone, which would allow for the development of a 84-unit apartment complex with market-rate rental units.

“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.

Proposed apartment complex rezoning

The rezoning request has been ongoing for months. The city’s 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 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.

A petition of protest to the rezoning, which can be submitted by property owners in the proposed zoning area, was filed. As a result, six out of seven members of the City Council — not just a simple majority — would need to approve the rezoning request.

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

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 pointed out is the about same size as some entire city blocks. The development also would include a surface lot and underground parking.

Proposed development there has been the subject of litigation between the city and TSB Holdings that resulted in a 2018 Iowa Supreme Court ruling. Justices ruled that apartment development there was allowed through a zoning the city no longer uses.

Council to discuss rezoning request

The council plans to consult with the Planning and Zoning Commission at a work session Tuesday. The council could vote on the rezoning request at its formal meeting following the work session.

Comments: megan.woolard@thegazette.com

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