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Council to weigh Lotus development agreement, $10,000 County Fair grant

Another abandoned home acquired by the city

A crack in the east exterior wall on the Lotus Building downtown is the subject of a proposed collaboration between the nonprofit and the City of Webster City. It will be the subject of discussion during the City Council meeting this evening. The crack was exposed when wind ripped metal siding from the wall earlier this year.

When the City Council of Webster City convenes its first meeting of July this evening it will consider whether to enter into an agreement with Lotus Community Development Inc. to redevelop Lotus’s property at 702 Second Street in downtown Webster City.

Lotus is a nonprofit organization headquartered in Vincent, which supports families experiencing domestic violence and housing insecurity

A violent windstorm in early 2025 ripped the sheet metal facade off the building’s eastern wall, exposing a masonry crack running the entire height of the brick building that had not previously been visible. The building’s east side was recently barricaded by the city as unsafe.

The agreement, which is unprecedented in the city’s history, would see the city and Lotus cooperate in “a deferred loan and development agreement” to repair the building’s masonry and develop rental apartment units in the structure.

Lotus, which operates a consignment-thrift store on the main floor, always intended to develop two apartments on the second floor, but has not moved forward on the idea due to a lack of funding.

Conditions of the agreement are complex, but the loan amount, as yet undetermined, would be used to “facilitate construction of fully-completed upstairs apartments” as soon as possible. When, and if the apartments are actually completed, the city would begin forgiving the loan at the rate of $20,000 per year until such time the loan is liquidated or Lotus decides to sell the building. In the event of a sale, the city would retain first right of refusal to buy the building.

In another matter on the agenda this evening, the Council must decide whether to approve a proposed $10,000 annual grant to the Hamilton County Fair Board from the Hotel-Motel Tax fund. The grant was proposed at the Council’s June 16 meeting by Jamie Griffith, Hamilton County Fair Board secretary, and Zach Williams, Hamilton County Fair Board president.

The reasons for the grant request are, essentially, increased operating costs the board faces in putting on the fair.

Since 2008, the Hotel-Motel Tax fund has awarded the Fair Board $65,536 for everything from grandstand renovation, equipment for the new conference center, preservation of the 1919 sales pavilion/horse barn, and, in 2020, the Grand River Rodeo event for that year’s fair. In July 2022, a one-time $100,000 Hotel-Motel grant was made to partially fund an addition to the event center.

In other business, the Council will consider a request from Wendy Clemens, owner of American Tap, 526-1/2 Second Street, Webster City, to close the parking lot south of the bar for a fundraising event in support of this year’s Angel Tree promotion, which buys Christmas presents for children in the city, as well as assisting seniors and other charitable activities. The popular event always sees an impressive display of motorcycle and side-by-side vehicles.

Various issues are the subject of first readings, including amendments to the Code of the City of Webster City regarding off-street parking regulations, controlled access to city streets, and revised statutes governing the date of trick-or-treating in Webster City.

Concerned citizens can find the complete agenda for the meeting on the city’s website, http://webstercity.com. Select the tab marked “government,” then select “city council” from the drop-down menu. Another menu will open on the right; click on “city council meetings” to find the agenda. The meeting itself begins at 6 p.m. at City Hall, 400 Second Street, and is open to the public.

The residence 1308 Willson Avenue was acquired by the City of Webster City on June 30, the latest in a series of dilapidated homes deemed under section 657A 10B of the Code of Iowa as “unfit for occupancy.” There are reported to be a number of other homes in similar condition, no longer being supplied with utilities, and presumed abandoned, that will also likely have to be acquired and demolished at taxpayer expense. The City Council of Webster City will discuss this issue at its meeting this evening.

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