Iowa City Council Gives Green Light to Construction Moratorium

Councilor Susan Mims was one of four Iowa City councilors Tuesday who gave a nod of approval for a public hearing in one of three amendments aimed at reducing high-density housing in the eight neighborhoods surrounding the city’s central business district.

The amendment, reducing the number of unrelated persons in one-dwelling units to a maximum of three, causes an immediate 60-day moratorium on all construction projects in the area.

"Is it better to do it now or is it better to do it later, as we get into the
construction season?" Mims said. "There would be a few properties who would possibly have gotten in (a project) under the wire."

A few properties had submitted plans for construction in the affected neighborhoods affected by the three amendments, which are in and surround the downtown and University of Iowa area, called the University Impact Area, and includes portions of Northside, Goose Town, College Green, Longfellow, Oak Grove, Melrose, Millard Orchard and Manville Heights neighborhoods.

Even though two of the three amendments were not granted the speedier public hearing, sending them on a 60-day trip before the same moratorium process will ensue, developers like Mark Holtkamp, lined up to address the council.

"The (current) project would allow six townhouses, allowing for 23 bedrooms, but under the new proposal, I’d be allowed to build 13 bedrooms there," said Holtkamp, who owns an affected property at the corner of Governor and Burlington streets. "Consider what you're doing to property values. I’d lose $65,000."

Glen Siders, owner of Southgate Companies and representing the Greater Iowa Homebuilders Association, urged the city council to consider the ramifications of zoning ordinances before drafting them, noting construction moratoriums were unneccesary and create a negative impact on economic development.

"If you’re limited to three non-related people, I'm not sure why you’d
build a four- or five-bedroom unit," Sider said.

Although landlords and developers maintained many renters are not students, "perceived evils" suggested to be associated with the zone included large parties and excessive vandalism - caused by students, according to Jeff Davidson, Iowa City Director of Planning.

"Our zoning code is structured such that it is now encouraging (high occupancy) types of housing," Davidson said. "With the new zoning, (more bedrooms) would be limited. Students are able to live in one- and two- and three-bedroom apartments. The larger (four- or five-bedrooms) are generally not appealing to anyone other than students."

The two amendments not passed would have prevented construction of multi-family dwelling units containing more than three bedrooms and would have established incentives to construct one-bedroom apartments, as well as "decentives" for three-bedrooms; and more parking spaces for three-bedroom apartment renters.

Former Iowa City Councilor Mike Wright addressed the council as one of the last speakers who had to be cut off at 8:40 p.m. so the council could deliberate. 

"Set the public hearing on 7b," Wright said. "It does get at many neighborhood concerns. Stabilization of core neighborhoods is a goal of this council and this is an opportunity to frankly, put your money where your mouth is."

Each council member spoke as to their reasoning behind their vote, split, 4-3, with Councilor Jim Throgmorton handing down the deciding vote.

"I don’t see any demons in this room, I see good people who are trying to do what they think is right with regard to development," Throgmorton said. "I absolutely understand what’s at stake."

Mayor Matt Hayek and Connie Champion were also included in the majority vote.

Correction: The original article misidentfied a council member as a member who is no longer on the council.