Council rejects Newton Inn offer

As of now, the former Newton Inn is still in the city’s possession.

A proposal to purchase the city-owned property at 2000 W. 18th St. S. failed to pass Monday night after a public hearing was held to discuss the details of the potential sale.

Members of the Newton City Council did not even make a motion to accept the $495,000 purchase price — the same amount the city paid for the building in November — from Car Country, Inc., a local salvage yard located off Iowa Highway 14 and less than a mile southwest of the dilapidated hotel.

Daniel and Debra Cupples, of Car Country, Inc., proposed to buy the property with $10,000 retained until the demolition is completed and estimated an 18-month completion, including 30 days to obtain a building permit and 180 days “to have structures into a pile of rubble,” city documents said.

Car Country, Inc. planned to salvage elements of the building throughout the demolition process and properly abate the asbestos. Newton Inn would have been secured with fencing during the demolition. The sign would either be removed or “professionally converted into a real estate sign.”

City staff estimated the demolition cost to be approximately $700,000. The lower proposal from Car Country, Inc. would have provided a cost savings to the city. Even more so since roughly $1,000 has already been spent on boarding and re-boarding materials after break-ins.

The 260,053-square-foot hotel, previously owned by BJM Hotels, Inc., reportedly met the bare minimum standards, according to city officials. The building has also attracted criminal activity. By November of 2019, police officers were called to Newton Inn 139 times and made 12 arrests.

Days after the Newton City Council bought the building, a fire broke out in one of the rooms. The fire department deemed the blaze — and a car fire that occurred minutes before — “suspicious.” No injuries were reported.

Most city council members generally agreed they want to tear the building down but do not want to rush the process, a sentiment that was boosted by a prepared statement from Newton Development Corporation Executive Director Frank Liebl, which was read aloud by Associate Director Tanya Michener.

“At one time this motel and restaurant was the pride of Newton; however, in recent years, it has been ridiculed by many driving by and an embarrassment to our community, let alone a nuisance,” Michener read from Liebl’s statement, adding that it is a prime piece of real estate that requires further review.

Since the hotel has only recently been acquired by the city, NDC recommended the Newton City Council “slow down a little bit” and give the organization a chance to help market the property, perhaps “45, 60 or 90 days to see what other developers or proposals might come forth,” Michener said.

Councilman Randy Ervin, who recognized he was not officially sworn in to council at the time of the city's purchase but was in attendance at the original meeting, said it seemed like the council was rushed into its past decision; he wondered if council would be hurting itself if it rushed into another agreement.

Unlike the meeting two months ago in which council members approved the purchase of the former Newton Inn, there were no public comments.

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com