City council sells D&D lot

Results from the Dangerous and Dilapidated Program are once again being felt in the community. City council voted to sell the former D&D lot at 603 E. Fourth St. N. to a home builder interested in constructing a $200,000 to $250,000 home.

A public hearing opened the discussion with Newton Director of Planning and Zoning Erin Chambers presenting two proposals for the property. The first came from Donald R. Hemphill who submitted a bid of $1,650 to build a home on the property. The second was an offer of $5,500 from Troy Teague to add a 32-foot by 48-foot detached garage adjacent to the property he already owns.

Chambers explained the financial impact each proposal has on the city including the yearly tax revenue that would be collected. The Hemphill proposal would garner approximately $1,870 per year in taxes while Teague’s structure, valued at approximately $30,000 would bring in $280 per year.

In looking at the impact of the bids during the next seven years, Chambers said even with Teague’s larger purchase price, Hemphill’s project would still bring approximately $7,280 more funds to the city with more than $1,600 per year more in taxes into the future.

“Staff would be favorable in selling the property to Hemphill based on three findings,” Chambers said. “One the proposals aligns with the articulated goals of the housing initiative, two the proposal provides for a larger tax revenue gain to the city and three, the proposed product, a wheelchair accessible home near the hospital, will provide a prominent example of a housing type which benefits and serves a particular need within the community.”

Council voted unanimously to sell the property to Hemphill for $1,650 with the intention of building a $200,000 to $250,000 home and bring in approximately $1,850 per year in taxes.

“I like the logic of it, on how the decision was made,” councilwoman Lin Chapé said.

The council also made a change to the requirements to serve on the newly approved City of Newton Marketing Board. In the original language, only those who are residents of Newton were allowed to be appointed to the board.

Council approved an amendment to include members of the business community who own a business within the city limits of Newton but may not reside in the city. The second and third readings of ordinance amendment were waived and it was adopted on Monday. Mayor Mike Hansen said he already has three potential board members in mind and is working on filing the final spots.

In other business:

• Larry Hamilton was approved for a $4,000 Downtown Micro Grant to be used toward an awning and painting program at his building at 219 First Ave. E. The total project cost is estimated at $20,245.

• The Convention and Visitors Bureau was approved to receive a $4,5000 payment to be used as a sponsorship for the 2017 Miss Iowa USA and Teen USA Pageant. According to the information submitted by the CVB, the pageant has an anticipated $100,000 economic impact for the city.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com