March 05, 2021

Dollar General to be built on former Mid-Iowa Motel site

After the pandemic delayed the closing date, developer and city are moving forward with project

Dollar General will be built on the land formerly occupied by the Mid-Iowa Motel.

On Monday, Feb. 15, the Newton City Council approved the assignment of contract for 1803 First Ave. E. to The Overland Group, LLC, which had previously purchased the land for $155,000 in December 2019. By the time The Overland Group bought the property, it was unclear what it would become.

According to city documents, the closing date for the former Mid-Iowa Motel site is set for March 1, 2021. At that time, building permits will be issued for the new Dollar General Store site, which have already been reviewed by the city.

The Overland Group will assign its contract for the property to Dollar General’s development entity “DGOGNewtonia02052020” before the closing.

Comments from city council members suggest the development project was delayed because of the pandemic. City documents say the developer was also granted an extension on its closing date. Councilperson Craig Trotter told his fellow elected officials he was excited to see the project unfold.

“It’s unfortunate we had the COVID to stop this, but it’s exciting to see this coming back through and moving forward,” Trotter said.

“It is, indeed,” Newton Mayor Mike Hansen added.

Mid-Iowa Motel was acquired by the city in 2018 through its D&D Program. The city paid $200,000 for the property and then demolished it for $69,216. For some time the property was considered unsightly and had garnered numerous calls from the local police department.

Per the redevelopment agreement with the city, The Overland Group will construct approximately 9,000 square feet of retail building space “which exhibits visual interest along its primary facade” by utilizing at least two kinds of building/siding/wall-covering materials and windows.

The completed building must have a minimum assessment of $470,000.

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