Shelby City Council tables sale of industrial site after residents raise concerns about proposed 36-unit apartment project

The Shelby City Council on Jan. 6 tabled a proposed purchase agreement to sell up to eight acres of city-owned industrial land to MK Purple Martin, LLC following a public hearing in which residents raised concerns about a 36-unit apartment project.

Mayor Pro-tem Todd Frank presided over the meeting. Developers Mike Sullivan and Kassie Inness described a three-story building with 36 apartments, detached garages and a planned summer start, and said the project had been awarded $1,000,000 in Workforce Housing Tax Credits from the Iowa Economic Development Authority and would make use of City TIF funds. The city stated the proposed purchase price is $12,500 per acre, not to exceed approximately $100,000 for eight acres.

At the public hearing residents questioned whether the size of the complex fits Shelby's small-town character, raised concerns about neighborhood quality and safety, and asked whether AHSTW school district has capacity for an influx of students. Other speakers expressed worry that the scale of the development could depress nearby residential property values and suggested the city should instead prioritize commercial development. The City Clerk reported written comments had been filed with the city.

Following public comment Councilmember Karen Schlueter moved and Councilmember Jackie Hursey seconded a motion to table the Purchase Agreement until a special meeting could be scheduled so absent members Mayor Ron Kroll and Councilmember Pat Honeywell could participate. The minutes record the roll-call votes as Schlueter ' Yes, Hursey ' Yes, Frank ' Yes, True ' No; the minutes also state "All ayes; motion carried," an inconsistency in the record that appears in the council's minutes.

City staff read the legal notice that the hearing was held under Iowa Code '1364.7 and provided the formal legal description of the tract (SW1/4 SE1/4 of Section 33, Township 78N, Range 40W). Developers told the council they had discussed workforce housing needs with local employers including Menards and XPO as part of project outreach.

The council's action was procedural: the sale was not approved or rejected, only postponed for further consideration. The council indicated the matter would be taken up at a future special meeting when more members could attend.