Keota Council Debates Bid for Property Planned for Demolition

By Casey Jarmes | The News-Review

KEOTA – During the Feb. 2 meeting of the Keota City Council, the council discussed a $10,000 bid to purchase the dilapidated home located at 108 W. Keokuk Ave. This property was originally purchased by the city for $45,000, with the council planning to find grant funding to fix up the house so it could be sold. However, according to Councilman Keith Conrad, this plan fell apart after then City Administrator Alycia Horras left. In October of last year, the council approved paying Waterhouse Construction $8,200 to tear down the house and $1,700 to tear down the garage on the property. The new council approved delaying the teardown during the Jan. 5 meeting, a few days before the demolition was set to begin, after several people expressed interest in purchasing the property.

The sole bid came from Keota residents Jim Flynn and Jaqueline Greiner, who stated that their goal was to prevent decline and attract families to Keota. They said that the house was in good shape structurally, but was not livable, having its electrical wiring clipped and copper wiring either stolen or removed. The bid letter stated that they did not know if the furnace works or if the plumbing has issues, and that it would take significant work and investment to make the property livable again. The bid letter stated that the $10,000 offer reflected the condition of the home and the work it would take to restore it. Flynn and Greiner stated that their goal was to fix up homes in Keota that would otherwise sit empty or be torn down and that this would be the first project they took on, with the goal of restoring additional homes in town over time. The letter stated that, if their bid was accepted, it would save the city the cost of the demolition, put the home back into use, and improve the neighborhood. Flynn and Greiner wrote that they have the resources needed for this project and that they believed it was better to restore the house, instead of tearing down a usable home.

Councilman Heath McDonald stated that they couldn’t accept the bid, because it was well under fair market value, and that they had assessed the lot alone as being worth $30,000. He stated that he hated to see it get torn down, but that they wouldn’t make any money if it was sold for $10,000. McDonald stated that some bidders originally said they were interested in paying $30-35,000 and that he wasn’t willing to sell the property for only $10,000. Councilman John Mather stated that Flynn and Greiner wanted to do good, but that the city would lose money.

Councilman Keith Conrad stated that he was “thoroughly disappointed” by the bid and that they could have had the house torn down by now. He stated that he didn’t know how to act on the bid letter. Councilman Chad Greiner stated he wanted to let the bidders have the property, because $10,000 is $10,000 and demolishing the property would be an additional expense for the city. City Clerk Hunter Bruns stated that they may legally have to pay Waterhouse either way. Mather stated that they weren’t making money either way.

Chad Greiner stated that they had already spent $45,000 and that their only options were to pay more for the demolition, or to sell the property and go down to $35,000. He said this was the only ground they would gain. McDonald countered that they would still be $45,000 in the hole, after paying Waterhouse. Mayor Ryan Carr stated that the city had burned themselves by not going to the bidding process right away. He stated that they should have done that, instead of dancing around and upsetting people in the community who had done good work for them, and that what had happened had rubbed him the wrong way. Discussion was tabled.

During public comment time at the end of the meeting, Waterhouse Construction owner Jamie Waterhouse asked how long the topic would be tabled. Conrad stated that he didn’t want to drag things out and would like to decide at the next meeting, after reviewing the legal issues. Carr apologized to Waterhouse, stating that he appreciated the work he did in the community. Waterhouse stated that there will be other houses to tear down in town in the future and that, if this property gets sold, he would like them to hire him instead of opening the project for competitive bids. Conrad stated that they are legally allowed to do that for projects under $205,000 and that he was unsure why they opened it for bids this time. He stated that there was another city-owned property that would need to be torn down soon. Waterhouse noted that his bid in October had been far below the other bids.

Former council member Patty Tinnes stated that she had spoken with Flynn and that, while the bid was low, the city wasn’t going to make money off this property anyway, and that it was good for someone to invest back into the community. She stated that this wasn’t necessarily what the city wanted, and that they would have to take a good-sized hit, but that Flynn and Greiner had a plan and that this could be the the start of something wonderful. Carr stated that he appreciated their hunger for the community and that he loved that someone was willing to take initiative and start attacking some of the lots and buildings in town. He stated that he believed they had a plan, but that the city would need to make sure Flynn and Greiner had a clear, documented plan in place, to avoid ending up in another situation like this.

The council approved establishing a Length of Service Award Program for volunteer emergency medical providers and firefighters. Mather explained that this would create a point system for first responders who respond to calls, with them being rewarded with money put into a fund that is matched by the state. The council approved hiring two interns to help with public works jobs like mowing and weed eating, cleaning up the parks and pool, painting, changing water meters, and working on the pavilion. Carr asked if they could get high school students to volunteer for silver cord hours, saying he wanted a way for kids to work with their hands and get skills outside of the classroom. McDonald said this could cause insurance issues, but that they could talk to Public Works Director Micah Harmsen if there was any work kids could volunteer for. Bruns gave an update on the water bill issues discussed at the last meeting, stating that the renter had been given until March 1 to pay in full, or have his water line disconnected. She stated that the renter had paid $280 over the weekend; Carr stated it was a shame people have to be scared into paying.

The council approved selling two city owned lots next to the school to the school district. The council reapproved a 28e agreement with the Keota Volunteer Fire Department for fire coverage. The council approved moving the next city council meeting to Tuesday, Feb. 17, due to the 16th being Presidents’ Day. Carr stated that they were still looking into a 28e agreement with the Keokuk County Sheriff’s Department, but that he didn’t have a clear answer on what the city would do yet.

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