City settles with Drozes; disusses EPC request

By Mary Zielinski
The Kalona council, at its Monday meeting, approved a release and settlement agreement with David and Joette Droz that has a $2,500 payment to the couple who had filed a petition in Washington County District Court to overturn a city board of adjustment ruling. The case had been set for a court hearing September 23.
The Drozes filed the petition after the board refused a request for a variance to permit construction of a deck over a city sidewalk on B Avenue. The deck was part of the design for a two-unit apartment addition to the Drozes downtown business building. The board, in denying the variance, said permitting it would violate city code.
When the Drozes sought a building permit, the plans included the front deck apparently was not noted when the permit was issued last September. The city later held that the deck could not be built because it violated code and the Drozes took legal action.

“We cannot use public tax money for private enterprise”

The settlement payment will not be covered by the city’s insurance, said City Administrator Doug Morgan. However, the agreement which was settled “with prejudice” (meaning no further action can be taken) was deemed far less costly than court costs and more legal fees for the city, regardless of eventually outcome. The city was represented by its attorney, William Sueppel Jr. and a second required by the insurance carrier.
Morgan said the Drozes will resubmit a plan for the front of the building, without a deck, that he expected would be approved.
In other business, the council discussed an earlier request from Reza Kargarzadeh for city assistance to pay for resurfacing the north parking lot at his Engineered Plastics Components, Inc. on Highway 1 in Kalona.
EPC had sought $54,000, the full cost of the work.
“I don’t see how we can pay for it,” said council member Ken Herington. “We cannot use public tax money for private enterprise.” He added that while EPC is a large employer, any other business could make the same request.
“The only fair way would be grant funds,” said council member Dave Kempf, “that would be available to all.”
He and Herington also suggested the possibility of in-kind work from the city.
There had been TIF funds used by CIVCO some years ago for a substantially addition, but Morgan explained that was directly related to the company creating more jobs in the community. The addition also increased the tax value of the business.
Herington suggested that ICAD and WEDG (Kalona is a member of both development groups) be contacted for possible assistance.
In other action, the council:

• approved a lease with the Mid-Prairie School District for use of the preschool area in the Kalona Community Center at $415 per month. Director is Paula Buckwalter who previously opened and operated A to Z Preschool in the Center. The arrangement will continue until the Parkside Activities Center opens in Wellman later this year;
• approved Change Order 1 for work on the 10th Street and F Avenue paving project, an increase of $4,845 for storm sewer adjustments;
• agreed to pay the cost of some 30 to 40 feet of concrete for the sidewalk bordering the Sharon Hill Cemetery on 6th Street. Herington explained that the walk exceeds the allowable two percent grade and needs to be replaced. It added it was a city oversight. The city will pay for the concerte and the contractor, All-American Concrete, will contribute the labor; and
• moved the September 7 meeting to September 8 at 7:30 p.m. in the library to accommodate the Labor Day holiday.