University Heights mayor, developer say they were unaware of previous business dealings

The University Heights mayor was involved in deals to purchase nearly $400,000 worth of condominiums in 1998 from the developer behind a new project that has divided this small town.

That business relationship has not been publicly disclosed until now, but Mayor Louise From said that's because she did not know the developer, Jeff Maxwell, was part of the transactions until a Gazette reporter asked her about it at her home on Monday.

“Oh, my God,” she said several times.

Maxwell also said he was unaware of the 1998 deals.

Maxwell wants to build a two-building complex that would reach six stories high with 80 condos and commercial space at 1300 Melrose Ave., which currently is home to St. Andrew Presbyterian Church.

The project would represent a big change for University Heights, a town of about 1,050 residents who live mostly in single-family homes. The town is just west of Kinnick Stadium and is surrounded by Iowa City.

The proposal has stirred controversy. Opponents say it raises environmental concerns and is out of character for University Heights, while supporters say it is a forward-looking project that would boost the tax base.

Even the perception of a conflict of interest is sure to spark even more debate, From acknowledged, but she repeatedly pleaded ignorance to her past connection with Maxwell.

In 1998, McKinley Place Properties L.C. bought four condominium units from Prime Ventures L. C., according to real estate records on file with the Johnson County Recorder's Office.

Members of McKinley Place Properties included Louise From and Dell Richard, and their respective spouses. Richard is the attorney for St. Andrew Presbyterian Church.

Members of Prime Ventures were Jeff Maxwell and Gary Watts.

The units were at 1505, 1507, 1509 and 1511 McKinley Pl. in southwest Iowa City. Each was purchased for $98,400 and was newly constructed.

From and Richard said they wanted to get a place for their sons to live during college. From said they bought three additional units to rent out. They still own three of the condos, and each are now valued at $138,900, according to the Iowa City Assessor's Office.

From and Richard said they dealt with a real estate agent when buying the units, not the developers. Richard also said he did not know Maxwell was involved and dismissed the significance of the deal to current events, saying it was 12 years ago.

“So what?” he said.

Richard also said they paid fair market value for the homes. In 1999, the first year the completed properties were assessed, the Iowa City Assessor's Office valued them at $112,050 each, which is nearly $14,000 more than what McKinley Place Properties paid the year before.

Four larger units across the street, with the busy Mormon Trek Boulevard on the other side, sold for between $107,900 and $108,900 in 1998, although they were assessed at about $111,000 in 2000, according to the assessor's office.

Richard and From said any comparison with other units is improper because theirs are the four smallest ones in the development, which is why they bought them. They also said they did not receive special treatment from the seller.

Maxwell said Watts handled all the sales for Prime Ventures. He said he has sold his interest in Prime Ventures and Watts is not involved in the St. Andrew development.

“If there is an LLC (limited liability company) that has been formed that has the From family or the Dell Richard's family involved, this would be news to me,” he said.

From said after hearing that opponents of Maxwell's University Heights project were looking for compromising information on city officials, she checked with council members and even Maxwell. But nothing came up, and neither she nor Maxwell made the connection with the 1998 deal.

“I wasn't dealing with Jeff Maxwell,” she said while looking at a warranty deed signed by Maxwell in 1998. “This is the first moment I saw Jeff Maxwell's signature.”

From, as mayor, does not have a vote on the five-member council. She is in favor of the project and has spoken with council members and Maxwell about it.

She and Maxwell said Maxwell has not benefited in any way from their previous connection because neither was aware of it.

Maxwell said he welcomed a news story.

“It would be better to go ahead and get it out there,” he said. “I don't have anything to hide.”

The City Council in December voted to rezone the church property to allow for the development, but more steps are needed for the project to become a reality.