The Waterloo City Council rejected plans for a new six-story apartment building in downtown Waterloo.
It comes after objections from another potential developer and an impending deadline to try and get millions in grant money.
It's something the city and downtown developers think will bring more people downtown - new places to live and shop.
But plans will continue to be on hold for a new building in what city leaders say is a vital part of redevelopment efforts downtown..
It's long been a goal to put a new apartment and retail building here on the west side of the river between the new RiverLoop Expo Amphitheater and the Waterloo Center for the Arts.
The city had been talking with Sherman Associates of Minnesota on a deal for a $10 million dollar building.
The city would sell the land for $1 and the developer would pay for the building using a mix of state and federal grants, tax credits and its own money.
As a condition of one of the grants, half the apartments would be rent-controlled for those earning 80% of the median income from the area.
But council members rejected the plan partly because Brent Dahlstrom, another downtown developer, told them he wanted a shot at a deal and had been shut out of the process.
With a deadline of March 1 looming to apply for grant money, the council voted against the project - at least for now.
"We're disappointed but if the city goes through a competitive process to sell the property, we'll definitely look at our options. We've put a lot of time and resources into what we think is a great project on what we think is a good site so we'll continue to follow the progress as it moves forward," said Jackie Nickolaus, Vice President Development for Sherman Associates.
The city can continue to pursue the project - but the chance to get $3 million in state disaster recovery money can't be used.
Monday, September 1 2014 2:01 PM EDT2014-09-01 18:01:07 GMT
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