WATERLOO — A recently discovered wetlands issue is holding up a development agreement for Con-Trol’s planned $11.5 million expansion at the Northeast Industrial Site.

Waterloo City Council members Monday indefinitely postponed voting on an incentive package for the 204,000-square-foot warehouse and office complex after being notified of the wetlands by the U.S. Army Corps of Engineers.

“Somehow the engineering group didn’t pick it up,” said Community Planning and Development Director Noel Anderson. “They went through the normal websites and documents and it didn’t show up there.”

City Engineer Jamie Knutson said the wetlands designation was part of the Martin Luther King Jr. Drive construction project, essentially a permit with the Corps of Engineers approved in 1999.

The city was required to create several wetlands areas to replace environmentally sensitive lands disturbed by the roadway construction.

“We definitely were aware of the ones on the south side (of MLK Jr. Drive),” Anderson said. “We didn’t know there was a small one on the north.”

The city is seeking authorization from the Corps before moving ahead with the project, but the development agreement was put on hold because the outcome could affect legal descriptions for the land the city intends to donate to Con-Trol.

“We aren’t exactly sure what we’re going to be required to do or shift,” Anderson said. “Best-case scenario is they’re fine and we can move ahead, but we might have to move the building or skip the future addition.”

Con-Trol provides container systems for suppliers at the John Deere tractor assembly plant and is looking to expand on land the city developed between Newell Street and Martin Luther King Jr. Drive, west of the existing Northeast Industrial Site.

The project has already received zoning approval, and the city has applied for a $1 million state grant for roadway improvements.

The proposed development agreement calls for the city to donate more than 27 acres of land for the project; a nearly $1.52 million grant to correct poor soil conditions; eight years of 50 percent property tax rebates on the added value with an option for two additional years of 35 percent tax rebates.

The development agreement also gives Con-Trol the right to acquire adjacent lots for $1 for future expansion.

In an unrelated action, council members unanimously approved a development agreement for Professional Lawn Care to construct three light industrial buildings with a combined value of $724,000 just north of 3488 Wagner Road.

The city is donating the land and will provide 50 percent tax rebates only if the project grows in value to at least $1 million.

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