Action to buy-out 202 N. Main St. causes a stir

     At the previous Monticello City Council (Sept. 7) meeting, the council voted to rescind action they took during their Aug. 16 meeting regarding the buy-out of property located at 202 N. Main St. through the assistance of FEMA’s Hazard Mitigation (flood) Program.

     During the council’s Sept. 20 meeting, the item was again on their agenda for re-consideration.

     “It failed due to a tie vote last time,” recalled City Administrator Russ Farnum. “But you passed a motion to rescind that resolution, which brings it back on the table tonight as a new item. You have every right and option you had the first time when you saw this (on the agenda).”

     The Iowa Department of Homeland Security and Emergency Mitigation has money for infrastructure and acquisition/demolition projects like this. This property, owned by Richard and LuAnn Wolken of Monticello, sits in the city’s floodplain. Rich addressed the council during their Aug. 16 meeting regarding the fact that the apartment complex has seen several flood events. The garage unit associated with the apartment building, however, takes the brunt of the flood damage.

     If the city chose to participate with FEMA in this buy-out project, the local match would be 15 percent, or an amount not to exceed $55,500. FEMA would cover 75 percent of the project, or $277,500.

     The costs would include property acquisition, environmental reviews, demolition and site clearance (which would also include funds to assist with potential tenant relocation), and site restoration.

     Farnum told the council he had to go off of ballpark numbers when putting the project budget together.

     “My intent was to fatten the numbers to make sure we’re not misleading anyone of the true project costs,” he said. “We could just buy the garage and leave the main building; that’s an option.”

     The Wolkens have agreed to sell the property to the City of Monticello, property that sits just north of the new Hy-Vee Dollar Fresh development project.

     “This is a voluntary option they’re (Wolkens) offering,” said Farnum. “It’s not eminent domain.”

     There was a lot of discussion regarding this proposal, again, at the council meeting, which prompted the council to table any action until some of their pressing questions were answered before they committed to a buy-out and local match. Instead, they will discuss it on Monday, Oct. 4, during a separate work session at their next meeting.

     Farnum said the grant deadline has been extended until the end of the November. The city would also have an opportunity to apply again in February.

     “This is a competitive grant,” warned Farnum. “The funds may not always be available.

     “And the city has taken an aggressive approach to clear out the Kitty Creek floodplain,” continued Farnum.

     He said he’s been in talks with a representative from Homeland Security and FEMA on this project. Council member Dave Goedken said he also contacted Homeland Security to get some of his own questions answered directly.

     Several city residents approached the council with questions of their own as well, including Dave Schoon.

     “How does this purchase benefit the taxpayers?” Schoon asked.

     “It mitigates property in the floodplain like we did with Oak Street (Manufacturing) and Julian Printing,” said Mayor Brian Wolken.

     “We also bought several residential properties, too,” noted Council member Tom Yeoman.

     “And flood insurance is subsidized by the federal government,” added the mayor. “With multiple losses, it gets it off the tax roll and limits the liability.”

     Yeoman said it also proposes an option to the city if there was interest in establishing a trailhead on that property with access to Willow Trail along Kitty Creek.

     “It’d be better than anything we currently have,” commented Yeoman.

     Goedken felt the council was misinformed the first time this was brought to their attention. He said FEMA was just interested in buying the Wolkens’ garage units, not the entire property. He also said if the city were to put a trail through that property, City Engineer Patrick Schwickerath told him the trail would have to be ADA compliant.

     “That’s a mis-statement,” said the mayor. “A trail is different than a sidewalk with compliance.”

     The mayor further said the council did not even discuss future development of the property, just considered the buy-out.

     “There were no plans made for after the purchase,” he said. “We mentioned a potential trail.”

     “Why should we spend money to take property off the tax roll?” asked Goedken. “What’s wrong with it, other than a few floods?”

     Tom Osborne said as a city taxpayer, he struggles with the city paying the 15 percent for the buy-out. He also felt it was wrong to displace apartment renters when the city has a housing shortage as it is.

     “What’s the benefit to the taxpayers of Monticello when six garages get wet?” asked Osborne.

     Council member Brenda Hanken asked if the city ever displaced residents before in a buy-out situation. City Clerk Sally Hinrichsen said the city bought nine homes along Oak Street following major flooding and some people had to relocate.

     “But I don’t believe we never paid to relocate people before,” said Goedken.