DES MOINES, Iowa (AP) — The city of Waterloo cannot sell the unused right of way portion of a road to a developer without informing nearby property owners and letting them bid on the land.
The Iowa Supreme Court on Friday ruled in favor of eight taxpayers challenging the city’s plan to sell land to a developer for $1. The land was initially acquired for a four-lane state highway in 1959. It was eventually built as a two-lane road, East San Marnan Drive. In 1983 the city took ownership.
The city decided to sell the property to a developer who wants to move the road and build homes.
The Supreme Court says the city must follow the state law that establishes procedures for a public hearing, notification of property owners and public bidding.