Sale of McCabe property opens option for City of Waukon to work with new owner on development of housing, commercial, recreational possibilities
Purchase option could expand Waukon City Park and housing possibilities ... A purchase option dealing with a portion of what has been most locally known as the McCabe property directly north of the Waukon City Park and along Second Street SW (pictured above) is now in the works between the City of Waukon and new owner of two of the three parcels of that McCabe property, Steve Pladsen, who has purchased those two parcels east of Second Street SW following a sealed bid process completed last week. The City of Waukon purchase option would be for much of the land pictured directly above, which would include approximately 10.5 acres directly adjacent to the campground/swimming pool area of the City Park that could be used to expand the park/campground area or for conservation purposes, as well as another nearly four adjacent acres a bit further north that the City would look to develop into multi-unit housing. All plans are currently tentative and further details will be made known as they become available.
by Joe Moses
The City of Waukon and Steve Pladsen, owner of RW Pladsen, Inc., have been working cooperatively relating to the planning and potential development of property adjacent to the Waukon City Park on the south end of the community. The land, known locally as the McCabe property, was recently auctioned through Hertz Farm Management by a sealed bidding process for three distinct parcels, with each creating unique opportunities for development.
With Pladsen winning the bid on the two parcels (Parcels 2 and 3) of the property located directly east of Second Street SW, between the Southcrest Assisted Living complex and the Waukon City Park, the City of Waukon has expressed interest in purchasing the southerly portion of Parcel 2. The City’s land purchase from Pladsen would consist of approximately 14.4 acres of the McCabe property’s southerly portion of Parcel 2, just north of the campgrounds portion of the Waukon City Park.
Of the 14.4 acres the City is interested in, approximately 10 acres will be an extension to the City Park with the remaining four acres to be sold by the City of Waukon for the development of multi-unit housing, such as apartment buildings, townhouses or condominiums. Per a proposed agreement with Pladsen, the City will purchase this ground for $20,000 per acre primarily through tax increment financing (TIF), with the City also agreeing to construct infrastructure necessary throughout those two parcels now owned by Pladsen in order to develop both residential and commercial possibilities within that overall area.
That proposed infrastructure would include a street heading east and west and named Eighth Avenue SW. It would extend from Rossville Road (Iowa 9 and 76) west to connect with Second Street SW.
Per the proposed agreement, several requirements are in place which will need to be met prior to construction of Eighth Avenue SW. These include a commitment from Pladsen relating to the relocation of his car and truck dealership from its current Rossville Road location to what would be the commercial parcel within the McCabe property, also fronting Rossville Road. Another requirement to be met includes a commitment of constructing 30 dwelling units on either side of the new Eighth Avenue SW, which may be in the form of apartments, townhouses or condominiums, but cannot include detached single-family houses.
Also as part of this agreement, the City will construct an extension of West Street SW from its current dead end location to the south, approximately 375 feet to the newly constructed Eight Avenue SW, as the construction commitments for residential units in Parcel 2 increase from 30 units to 48 units. The City also has committed to construct the infrastructure for this development including a storm water management system to coincide with segments of street construction.
To serve the needs for this development, the City will be constructing an eight-inch water main and the appropriate sanitary sewer along the length of the Eighth Avenue SW corridor after commitments have been made relating to construction requirements. The water main at this location will be “looping”, otherwise described as two points of water flow.
COUNCIL ACTION
The Waukon City Council met in special session Wednesday, September 15 at 11 a.m. to address the approval of that purchase option for approximately 14.4 acres at the east side of Second Street SW. The council approved this matter with it also being noted that the purchase price of this ground would be $20,000 per acre.
Prior to taking official action, council member Gayle Decker stated, “Any purchase of the land by the City for development will be transparent and will be at arms length. The council is fully aware of the value of said land. Lastly, I think the development of the McCabe property offers great potential for the City of Waukon. I fully support this land acquisition and the infrastructure costs. It will make Waukon great.”
At that September 15 meeting, Waukon City Manager Gary Boden also commented, “I want to indicate to the council that I have had very serious discussions about the acquisition of approximately four acres that the City would purchase to have the opportunity to sell on the south side of Eighth Avenue SW.
Also in the context of this discussion, people are beginning to come forward wanting to invest in the construction of apartment buildings. They are very confident about the fact that the significant construction of apartment buildings could occur as part of this project. It’s not just the City doing this. In fact, the City becomes somewhat of a secondary partner in the overall development of this ground. On the front end, the City is making the commitment to doing the infrastructure development of this ground through tax increment financing.”
Thursday, September 16, Boden confirmed to The Standard that Pladsen’s bid for Parcel 2 and Parcel 3 of the McCabe property had been accepted as the high bidder. Details of a development agreement between the City of Waukon and Pladsen will now be ironed out in anticipation of that agreement being approved by the Waukon City Council at its October 18 meeting. Following his confirmed bid winning, Pladsen also shared his thoughts on the development possibilities.
“Kudos to the City of Waukon, the council, the city manager to approach me and work together on this development,” Pladsen shared. “It will be a game-changer for Waukon, and there will be some really neat things that are going to happen with this. We’re hoping it brings a new look to Waukon, that’s what we are shooting for. The City worked very, very hard to get this done, and I’m very impressed with that aspect of it.”
The total of 32 acres purchased by Pladsen will provide a combination of commercial and residential possibilities, with the City being involved in development of infrastructure for both possibilities as outlined in the in-progress development agreement. While the City’s intentions have been more specifically defined with its plans for the nearly 14.5 acres it is proposing to purchase from Pladsen, he says his plans for the remainder are still very fluid.
“We’re super excited about some possible plans for out there,” Pladsen shared. “In two to three years, you’re going to say wow, that really is something that’s pretty cool that took place out there.”
Pladsen notes that for as impressed as he has been in working with the City thus far getting to this point, he’s even more excited about the future. He sees the opportunities with this development continuing to build on a very solid foundation already existing in the Waukon community.
“This is a combination of myself working with the City and what we are going to do with it,” Pladsen explained. “What we’re planning on going there is some really neat stuff. It’s about bringing some businesses and some new life to Waukon. I’ve always told people - you know, the old nickname, this is God’s country - and it is. And there’s room for more businesses and more housing. You look at our hospital, at our school system and our churches - what a wonderful base to get people here, so I think this is another step of many to come to continue to build on that.”
Pladsen also appreciates the family of the late LeRoy and Marcella McCabe for sharing in that vision and making this land available. “Hats off to the McCabe family to understand that this is what Waukon needs,” Pladsen praised. “They knew it was time to let this land become what it needs to become for the community. I want to thank them.”
