Newton to ask court to adhere to settlement agreement for damaged property

It will soon be four years since a derecho ripped through the Midwest causing $11 billion in damages, and in that same timeframe the heavily storm-damaged Chedester Properties, LLC building in downtown Newton has remained blocked off from public access and at one point was believed to be scheduled for demolition.

The City of Newton has been pursuing a lawsuit against the owners of the damaged property at 209 W. Second St. N., directly south of Bank Iowa. The city on Aug. 2 released a statement about the building and the status of the proposed demolition, which was supposed to have been done in February.

“We are six months past the demolition date in the settlement agreement and the property owners have repeatedly asked the court for multiple extensions,” the city stated. “The City of Newton has worked in good faith to resolve this matter, and we will continue to do so until the building is demolished.”

By the time the city and the property owner appear in court once again Sept. 10, attorneys will continue to ask the court to compel Chedester Properties, LLC to adhere to the settlement agreement and demolish their building. Demolition of the building has also caused some unease with nearby property owners.

In April, Kelly Koenen was holding back tears when she told council members how worried she was about the building she owns being next door to a property which sustained damage from the derecho. The owner’s failure to repair the building is in large part why the city sought legal recourse on behalf of citizens.

Koenen Chiropractic operates at 200 N. Second Ave. W. in downtown Newton. Dr. Jay Koenen, Kelly’s husband, has been offering chiropractic care there for the past 25 years. Kelly Koenen this past spring expressed her disappointment in what she affirmed was a lack of communication about the demolition.

“None of us have asked for this,” Kelly Koenen said during the public participation portion at a past city council meeting. “Not you guys and certainly not us. So we just want to work together to get this resolved. It has been a thorn in this community long enough.”

Matthew Brick, the city’s attorney, informed council members of the settlement agreement back in October 2023, saying the building must be dealt with as soon as humanly possible. He also explained that the pandemic and the death of one of the defendants have delayed the process further.

Still, Brick has defended the wait because in the end it is saving citizens of Newton from paying for the demolition.

“The legal fees and the staff time (are) significantly less than the six figures that it would have cost to rip this building down,” Brick said.

Here is the city’s statement in full:

The August 10, 2020 derecho caused widespread damage in the City of Newton including significant damage to several buildings. The building owners of 209 W. 2nd St. N., Chedester Properties, LLC, failed to make repairs leaving the City with no choice but to seek legal recourse on behalf of our citizens to require the owner to make necessary repairs or demolish their building. That legal proceeding was resolved on October 2, 2023, through a Settlement Agreement between the two parties wherein Chedester Properties, LLC agreed to demolish the building as soon as possible but no later than February 2, 2024.

As we approach the 4-year anniversary of the 2020 derecho, 209 W. 2nd St. N. has yet to be demolished. We are six months past the demolition date in the Settlement Agreement and the property owners have repeatedly asked the court for multiple extensions. The City of Newton has worked in good faith to resolve this matter, and we will continue to do so until the building is demolished. Our next day in court is September 10, 2024, at which time the City will continue to ask the court to compel Chedester Properties, LLC to adhere to the Settlement Agreement and demolish their building.