The city may soon see some new homes on the north side after the Waterloo City Council approved a developers’ agreement with Petry Trust No. 1988 during Thursday’s meeting.

The trust is seeking to purchase five parcels in the Treyburn Farms Subdivision lots and 35 lots in the DeYoung Farms Subdivision.

Clerk/Treasurer Mo Hansen said the agreement is “pretty simple and straightforward.” The agreement outlines the incentives provided by the city including a $350 per dwelling unit cash incentive payable at the time each occupancy permit is issued, a two-year guarantee of municipal fee waivers, and modifying the rear yard setbacks for single-family and multi-unit residences.

Under the agreement, Petry Trust is obligated to enter into a three-year partnership with the city to promote and market Waterloo advancing the construction of new residential properties. Additionally, the sale of all 40 parcels must be closed by Sept. 9 at the latest.

The trust is buying the five Treyburn Farms lots for a total of $191,500. The purchase price for the DeYoung Farms lots, which is owned by private company Waterloo Properties Inc., did not release how much the 35 parcels sold for.

“They initially wanted these (Treyburn Farms) lots a whole lot cheaper,” said Mayor Jeni Quimby. “They wanted the taxes changed, which we can’t do that … The number Mo and I felt comfortable with was $350.”

Unlike the Treyburn Farms Subdivision, the De Young Farms does not have any covenants in place, Quimby said. It does already have parcels zoned as single-family and multi-unit residences. The mayor explained if someone purchases a lot designated as multi-unit, they would be able to build a single-family home; however, a multi-unit residence could not be built on a parcel zoned for a single-family residence.

“When it comes to Treyburn, they need to follow our rules,” Quimby said.

She said in the long-run, having Petry Trust buy the 40 properties would be beneficial and she believes the company will work to sell the lots quickly so it does not end up paying taxes on each parcel.

The board also:

• Took no action on the sale of 2.3 acres of city property located at 333 Portland Road to RTG Enterprises LLC, Ron and Tama Griffin. According to Hansen, an offer to purchase the lot for $5,000 was put before the city Aug. 2. Approximately two weeks later, the city put forward a counter offer of $19,092. Hansen said since the counter offer was issued, RTG Enterprises had not put in a counter offer for the city’s offer.

Quimby said the last appraisal done for 333 Portland Road valued it at $13,000 per acre. Two years ago, the Community Development Authority agreed to an $8,301 per acre price, which the city found agreeable.

The city’s counter offer expires Aug. 28; since it was still active, the council was unable to take any action.

The parcel is located adjacent to 347 Portland Road, which the Griffins own and operate their businesses out of.

• Approved a resolution authorizing issuing and selling $4,365,000 combined utility revenue bonds.

• Approved a resolution updating the municipal code section 278-2 – possession and use for firearms and other dangerous weapons. The update is due to changes in state statute.

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