Washington approves development agreement after controversy

WASHINGTON — The Washington City Council voted unanimously in favor of a development agreement with ACE Signature Homes LLC for the NLW Phase 2 Subdivision, after some back-and-forth at a meeting Tuesday night.

The development agreement requires ACE to complete four houses in the subdivision every year in 2023, ‘24, and ‘25. While ACE has rights to market the remaining lots, it may do so for “no more than fair market value of other new construction lots selling in Washington,” according to the agreement.

While there were concerns that the “market value” wording was too subjective, City Attorney Kevin Olson said a slight wording change approved at the meeting made it enforceable.

“Whenever people sell property, they have to put a declaration of value in so they can determine what the transfer tax is,” he said. “We can check to make sure that those aren’t above that when we get the declaration of value for those lots.”

Another concern stemmed from previous city code violations by the developer, allowing residents to move in before the city had granted certificates of occupancy.

“If they move individuals into the home pre-closing … there’s a consequence for that, because that happened twice,” Mayor Jaron Rosien said. “The consequence isn’t worth blowing up the entire agreement, but there should be something.”

Rather than imposing a simple fine for early move-ins, Olson suggested a municipal infraction instead.

“With a municipal infraction, you get an order from the court that says they shall not do that again,” he said. “If they do that again, they’re in contempt of court, which you don’t really want to be.”

Council Member Illa Earnest said that addition made her more confident in the agreement.

“I think it doesn’t matter what money you charge them, they don’t care,” she said.

Rosien said he was still confident in cooperation.

“I want to have good faith, just for the record,” he said. “And I think we do have good faith, but I also believe it’s important to add a little additional language to protect the city’s interest in regards to moving in pre-close and fair market value, and I believe this addresses those.”

Others were less optimistic.

“You might have a little faith in them, I don’t” Council Member Steve Gault said. “This is the third infraction we’ve had with these people.”

Comments: Kalen.McCain@southeastiowaunion.com