Newton Inn to be demolished for $690K

Newton Inn will be reduced to rubble, despite some skepticism.

Because the city council turned down a previous $495,000 bid to purchase and demolish the Newton Inn, which was the same price the city paid to acquire the property, councilman Mark Hallam had some reservations about a new, more expensive offer presented during Monday night’s meeting.

Regardless, the Newton City Council voted unanimously in favor of the $690,000 bid from the Bondurant-based excavating contractor, J. Pettiecord, Inc. This means the city has now spent more than $1.18 million on Newton Inn.

City staff estimated the demolition project would cost $700,000. The plans — including the demo of the structure itself and removal of pavement, signs and footings on the property — were created by the city’s community services division and the architecture/engineering design firm Shive-Hattery.

By April 27, the city received a total of eight bids from contractors. Apart from the low offer from J. Pettiecord, bids ranged from about $735,000 to more than $1 million. Hallam worried contractors would stumble upon an issue requiring further cost amendments and more money spent on the project.

Newton Public Works Director Jody Rhone said the asbestos abatement would likely be the culprit if there were unforeseen additional costs; an engineering firm, he noted, had already analyzed the project as the demo plans were laid out. However, the remainder of the demolition “should be fairly straightforward.”

When the city first received the $495,000 bid from a local salvage yard, Newton Development Corporation Executive Director Frank Liebl asked council members in a letter to wait up to 90 days for the organization to market the property for developers. The city council listened and rejected the offer from Car Country, Inc.

On Monday night, Liebl said things “have been pretty quiet” for the past six weeks. The economic development team did find an undisclosed client that had some interest in the property. But the client’s biggest concern was the ingress and egress — how people would enter or exit the property.

Newton Economic Development Specialist Craig Armstrong contacted the Iowa Department of Transportation to see if changes could be made. Liebl said there is a possibility the IDOT could allow a new ingress/egress for northbound traffic, but it could not change it for southbound traffic.

“If any development would still want to go into that area they’d have to use a frontage road going southbound,” Liebl said. “So that was of interest to this particular client, but after following up with that broker late this afternoon they said they’ve been attempting the last two weeks to reach out again.”

Developers and real estate teams, he added, have gone silent because of COVID-19. Another developer expressed an interest and contacted NDC a couple weeks ago. But that developer, too, has gone silent. Based on those interactions, Liebl said NDC does not have a solid lead at this point.

“If you decide to demo it, I think having a demoed site would probably be more appealing than having this facility sit there and look like it is today,” Liebl said. “That’s just my opinion.”

Councilwoman Evelyn George continues to worry about the ongoing criminal activity seen at the neglected, non-operational property. In November 2019, Newton Police Chief Rob Burdess said the criminal activity around the hotel has dramatically increased in recent years.

In 2017, officers reported to the hotel about 37 times and made five arrests, Burdess said. In 2018, police responded to 82 calls and, again, made five arrests. By mid-November, officers were called to Newton Inn 139 times and made 12 arrests.

“That was certainly a concern and has been a concern for a long time,” George said.

Most council members agree the building should be destroyed. Although Hallam looks forward to seeing the building removed, he still has “serious concerns” with the price, especially when council had a chance to vote on a less expensive option three months ago.

“As I see it, the fundamental value of that land just has not changed,” Hallam said, noting the COVID-19 pandemic does play a factor. “The economic conditions have changed because of the pandemic, but the pandemic will pass. I can’t help but think that we should consider alternatives.”

Even if its something as simple as “pulling down the sign,” installing a fence around the property and hiring a company to patrol it a few times, Hallam added. Granted, the councilman admitted that is not the most attractive option.

“It would certainly be less than spending $690,000,” Hallam said. “Having said all that, I truly don’t know how to vote on this. There’s so many uncertainties about what the future is going to hold in terms of economic conditions.

“I urged caution when we were evaluating whether to buy this property, and I urge caution now.”

George argued it would be better to demolish the building now in order have a property that is primed and ready for development when the pandemic subsides. Newton Community Services Manager Brian Laube said if the contract is approved by council, the contractors could begin abatement work in a month.

Councilman Randy Ervin said part of him agrees with Hallam but also recognizes the city needs to demolish Newton Inn.

“We need to give Frank and Craig and that group something to sell,” Ervin said. “Right now all they can do is sell an old building on a piece of land.”

Councilman Steve Mullan believes it is important the city “controls its own destiny.” The demolition, he suggested, does just that. Newton Mayor Mike Hansen is hopeful economic development teams can still market the land.

“I would encourage you to continue on with the process and get this property ready for development,” Hansen said.

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