A seemingly contentious matter for the Waterloo City Council turned out not so Monday night.

By a 7-1 vote, aldermen approved two special use permit requests for a combined business/apartment development to be built on the former Ahne’s Bakery property at 201 W. Mill Street.

Alderman Jim Trantham cast the lone dissenting vote.

The matter was tabled during the March 2 meeting due to a few council members saying they sought more information from both the planning commission and zoning board of appeals meetings.

The issue was further debated amongst aldermen as part of last Monday’s monthly utility meeting.

Per an ordinance amendment approved in 2021 when a women’s recovery residence was proposed at the former Rosedale House on Mueller Lane, the Waterloo City Council can either affirm or reverse a zoning board decision. 

Prior to Monday’s vote, Alderman Jordon Riley sought clarification on the ordinance that states the city council’s decision should be “made based only upon the record from the zoning board of appeals hearing.”

Waterloo City Attorney Natalie Steppig said this means the council’s vote should consider the process by which it arrived to this point through all the various levels.

“You’re either on board with this, or you’re not,” Steppig said. “You can use whatever you want to make your own decision.”

Riley thanked Steppig for the interpretation, saying “his vote would have changed” had he only been able to adhere to the zoning board meeting record rather than all of the extra research he’s conducted.

Before casting his second favorable vote of the two special use permit requests, Alderman Jim Hopkins said “Don’t let me down, J.P.” – referring to developer J.P. Fitzgibbons, who is involved in this project along with George Obernagel.

The Ahne’s Bakery property has sat vacant since a September 2022 fire closed the local treasure for good. 

This property was purchased last year by local Obernagel and Fitzgibbons, who have proposed to demolish the burned-out bakery and develop the business/apartment complex on this site. 

Phase one of the project involves one business office on the ground level with two apartment units above – exactly like the Obernagel/Fitzgibbons development next door involving Adorable Beast pet grooming at 203 W. Mill Street.

Phase two would see one non-street-facing apartment unit on the ground level and up to three apartments on the second floor with either one or two business spaces on the first floor depending on space and tenant requests.

The city’s planning commission voted 7-0 in favor of these special use permit requests, followed by a 3-3 vote from the zoning board that constituted a non-recommendation.

Parking was an expressed concern by small business owners on Mill Street during the zoning board’s split vote. 

While there are parking regulations within city limits, those restrictions do not apply in Waterloo’s Central Overlay District. This proposed development  falls within that district.

Parking was also brought up as an issue by Mill Street Treasures owner Brian Hart during the March 2 council meeting.

During last Monday’s utility meeting, Mayor Stan Darter expressed concern about a possible 4-4 vote amongst aldermen – meaning he would have been forced to cast the deciding vote. 

“There hasn’t been a vote by a mayor in more than 20 years,” Darter said then.

With the go-ahead given by the council Monday night, Fitzgibbons said building plans still need to be finalized but demolition to the former bakery could start in as soon as two months.

City buys land

In other action on Monday night, the city council approved the purchase of 89 acres owned by the Shirley M. Feldmeier Trust that borders the Waterloo’s existing sewage treatment plant off Sherwood Lane on 120 acres at the northeastern edge of town. 

“Our sewer plant is currently 20 years old, so when it’s time to either update or rebuild or work on our sewer plant, this is gonna be the ideal property to do that,” Darter explained. “It just happens to be for sale for now.”

Per a public notice on page 1C of the March 18, 2026, issue, the purchase price for this tract of land is $1,373,590.