Mid-Iowa Motel sold to city for D&D

The City of Newton has purchased the Mid-Iowa Motel for $200,000 as a part of the Commercial Dangerous and Dilapidated Program.

The city council approved the purchase of the property located at 1803 First Ave. E. on Monday, with the goal of continued improvements to the aesthetic of First Avenue.

“Purchase and demolition of the motel will continue forward with aesthetic improvements within the corridor,” city administrator Matt Muckler said. “The demolition of properties at 1223, 1227 and 1301, in which the city participated through a grant toward the demolition, has remarkably improved First Avenue East. This purchase and eventual demolition continues that work.”

At approximately one acre in size, the purchase price comes to $4.58 per square foot, which is consistent with recent purchases in the area, Muckler said. The former Lauterbach GMC building had a $5.83 per square foot price, while the total square footage of the buildings at 1200 to 1300 First Ave. E. came in at $5.71 per square foot. The property was valued at $236,130 at its last assessment.

Purchasing and demolishing the motel also addresses one of the largest economic development challenges the city has — gaining the interest of hotel developers. Muckler said the challenge comes in Newton’s higher vacancy rate due to the lower quality hotels and motels.

“This purchase fits within that strategy,” Muckler said. “With the purchase and demolition of the hotel, the number of available rooms goes down, impacting the measurement that developers use to first determine if they have an interest in the community.”

The demolition will also affect the Newton Police Department, with officers having been called to the property 88 time sin 2017 and 90 calls in 2016. Officers responded to various calls including disputes, domestic, disturbing the public quiet, unwanted guest, theft, drugs and harassment.

The sale is contingent on the owner securing the financing of a new motel in another community. The owner is confident the financing will be completed soon, Muckler said, and before the city is ready to close on the property.

“I think the public will appreciate this,” councilwoman Evelyn George said.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com