For years the Newton City Council has been ridiculed by residents condemning their habit of selling acquired D&D properties at a loss, but this past week the council broke from that trend and sold a property for a small profit. The city had acquired the property for $12,000 and sold it for $13,000.
The property is located on the 500 block of North Second Avenue West.
According to city documents, the buyers — Guy and Lisa Winchell — intend to demolish the property and incorporate it into their property as yard space. Chad Gebhart, a Newton resident, praised the decision to sell the land to private property owners as opposed to “this real estate business that the city is in.”
Newton Mayor Randy Ervin took no offense to the comment and was quick to acknowledge the criticisms that have been lobbed at the city regarding its practices with D&D properties. Ervin thanked the Winchells for coming to the council with a good offer, which netted the city a $1,000 return.
“I know that’s a discussion that’s always in front of this council is we spend $12,000 for a property and then we end up selling for $5,000 or $4,000,” Ervin said. “The fact that the Winchells have come forward and honestly offered us an increase on this parcel, I think, says a lot about their character.”
Council member Jeff Holschuh understood the idea of wanting to expand the property, but he agonized over whether it was the best use of the property. With its proximity to the DMACC campus and at a time when home affordability is through the roof, Holschuh wagered it could serve as an affordable home.
“I believe that someone would be able to put something on it that would generate substantially more tax revenue for the city,” Holschuh said.
Erin Chambers, director of community development, explained the dimensions of the property would pose challenges for home builders. In addition to it likely being a narrow home, the property also a non-conforming street frontage width based on current city codes. Typically, residential lots are 60-feet-by-60-feet.
The subject property lot is only about 50 feet wide, making it undesirable for new residential development.
“As far as redevelopment goes, right now the city has approximately a dozen lots that we are looking to sell and redevelop,” Chambers said. “From an inventory standpoint, it would be my opinion that it’s not necessary to build our inventory, to promote redevelopment. We have lots for that purpose.”
If a redevelopment were to occur, Chambers noted it would have to be a very narrow home and likely not have an attached garage. It could be a desirable fit for a Habitat for Humanity home, but she said the organization has not come around to make an offer on the lot. The city only received one offer.
Despite Holschuh’s apprehensions, he would join his fellow council members in approving the resolution following the public hearing.
The item passed in a 5-0 vote. Council member Joel Mills was absent.