WATERLOO — City leaders will try again this week to donate part of San Marnan Drive for a new houses along Sunnyside Golf Course.
Waterloo City Council members are scheduled Monday to hold a public hearing and vote on a development agreement essentially giving the property to Sunnyside South Addition LLC for 24 upscale housing lots.
The move comes nearly five years after council members approved a similar development agreement that led to numerous court hearings, including two trips to the Iowa Supreme Court, regarding the process the city used to sell the roadside.
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The original development agreement required the city to sell the land to Sunnyside South Addition — a partnership between Jeff Stickfort, Van Miller, John Deery and Jim Walsh — for $1. The investors reportedly spent more than $1.8 million relocating San Marnan Drive and developing the lots for sale.
But the state Supreme Court in 2014 ruled in favor of a group of property owners, spearheaded by the late Bob Molinaro and represented by attorney Dave Nagle, who had claimed the city failed to follow state laws governing the sale of unused highway right-of-way.
City officials believe they have now complied with state laws after getting a $1.825 million appraisal on the land and taking bids from past and current owners of the property from which the land was acquired in 1959 for the highway construction.
No bids were received on the property in July, so the proposal up for consideration this week confirms the prior sale to Sunnyside South Addition LLC for $1.
Nagle has previously objected to the appraisal process the city used when taking bids earlier this year, threatening additional legal action if the council moves ahead with the sale to Sunnyside South.
The meeting is scheduled for 5:30 p.m. Monday in the council chambers on the second floor of City Hall.