Apartment developer backs out of Washington

WASHINGTON — A company has backed out of plans to buy land and develop apartment buildings on the north side of Washington, according to emails sent to city officials and obtained by a public record request from The Union.

The move comes after Susan Fisher, a member of the Planning & Zoning Commission who lives near the proposed development, circulated a letter and petition opposing the apartments, which she estimated to have at least 60 signatures in early July.

“The negative impact of this extremely undesirable planned development will be felt in this entire part of town, not just by adjoining property owners,” the letter said. “I encourage you to spread the word far and wide … and I encourage everyone to personally attend the hearing as soon as we know when it will be held and vehemently voice your opposition.”

The company, CBC Financial, is known in Fairfield for converting a historic former barn machinery building into a 44-unit apartment complex, a project that won the Iowa Finance Authority’s 2022 “HousingIowa” Multifamily Housing Award. It also developed Asbury Heights, a property in Ottumwa which has also received recognition from the state.

In an email to city Building and Zoning Official Jeff Duwa and City Administrator Deanna McCusker on July 16, however, CBC Financial representative David Todt suddenly announced that the development was “on hold for now,” citing local resistance despite “encouragement” from some city staff.

“I think the concern from the community is an important issue,” Todt wrote. “We will not ask for a public hearing to present our plan at the August Planning and Zoning meeting … We may revisit the project with you at a later date.”

In an information packet shared with Planning & Zoning commission members at their meeting in June, the company said its goal was to help address a housing shortage in the community.

“The City of Washington’s 2019 Housing Needs Assessment acknowledged that County residents feel there is a short supply of many types of housing,” the packet said. “Throughout the report the need for affordable housing was particularly emphasized. CBC would like to provide new affordable housing in line with the (city’s) strategic goals."

Said study was a 69-page review of feedback from county residents. Part of its findings came from “stakeholder interviews” with real estate professionals, government officials and a school district staff member in Wellman, Kalona, Riverside and Washington. The rest came from a total of over 500 survey responses around the county, but largely concentrated in the same four cities.

Among other things, it showed that 75% of respondents believed apartment housing “would be successful in (their) area,” as well as a general “desire for more quality and affordable rental options.”

But Fisher said the area could better address its affordable housing needs with “owner-occupied homes in the $150,000-$200,000 range,” something she claimed was better suited to the needs of demographics interested in moving to Washington.

“I’ll see an article about somebody new that’s come to town, it’s usually a young professional … that’s what they’re looking for, that’s the market they’re looking for,” she said in an interview. “Or older people that come here because they have a family member here … So that’s, to me, where our need for housing is.”

Fisher’s letter made a number of other complaints about the proposed apartments. It asserted such housing would lower nearby property values and increase crime rates, while other parts of the letter complained about the company’s use of tax credits in its previous projects, and the potential impact on traffic around the nearby school.

Primarily, however, it focused on the apartments’ need for “spot-zoning,” a practice in which the city zones a specific parcel differently from those around it, which is generally discouraged by municipal code.

The proposed location along East 12th street is currently used as farmland, in a district zoned R-2, the designation for one- and two-family residences. An apartment would require R-4 zoning.

“If CBC Financial wants to build apartment complexes, they should be built on the outskirts of town where R-4 zones already exist,” the letter reads. “I want to do everything in my power to put a stop to this rezoning and planned development.”

While the email to city officials said CBC “may revisit the project at a later date,” the company has not provided a timeline.

Asked about clarification on the project’s future, CBC Financial President James Danaher said, “We’re in a holding pattern,” but he and another CBC Financial spokesperson declined to elaborate on the record.

Comments: Kalen.McCain@southeastiowaunion.com