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Des Moines Developer Owes City For Past-Due Loans

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DES MOINES, Iowa (AP) — An architect and developer owes Des Moines more than $1 million for loans he received for projects officials have lauded for spurring development in the East Village area.

The Des Moines Register reports Kirk Blunck is long overdue for repaying loans he received in the late 1990s on the Teachout and Hohberger buildings.

The city gave Blunck a $300,000 loan for restoration of the Teachout Building and $400,000 for the Hohberger Building. The Teachout loan was due in 2008 and the Hohberger loan in 2009. Interest has been accruing since then.

Blunck has paid $17,500 on the Teachout loan and nothing on the other loan.

Blunck wants the city to change the loans’ terms.

Residents also have had to vacate a Blunck-owned apartment building after inspections noted problems.