IOWA CITY – Multiple high-rise properties in Iowa City – including The Chauncey luxury tower that opponents fought for years and that received millions of dollars in city incentives – are headed for a sheriff’s sale.
A Johnson County judge this week ruled in favor of GreenState Credit Union, which filed a petition in February to collect a debt of six sets of loans for real estate projects related to developer Marc Moen and “his family members and friends,” totaling about $28 million, according to court documents.
The outstanding loans involve the properties The Chauncey, the Plaza Towers and Park@201 residential and commercial projects, a building known as the Iowa City Health Club, as well as a parking lot.
Moen and GreenState Credit Union could not be reached for comment Friday.
The credit union was working with the development teams for over a year to restructure the debts, but those discussions proved “fruitless,” so credit union officials started a foreclosure action, court documents state.
GreenState, in filing for a summary judgment, asked the court to enter a judgment in its favor against Marc Moen, Michael Moen, Robert J. Jett, Monica Moen, Central Park LLC, The Chauncey LLC, Plaza Towers LLC, Iowa City Health Club LLC and Hills Bank and Trust.
As part of restructuring efforts, all the defendants, except Hills Bank, entered into a forbearance agreement with GreenState in June 2024, according to court documents. The agreement meant the defendants and lender would agree to voluntary transfer of property ownership. Moen and others also signed a consent foreclosure decree, in the event they failed to repay the loans by Dec. 31, 2024.
When the loans were not paid off, GreenState filed a motion in March for a summary judgment in its favor. A judge this week ordered the properties to be sold at a sheriff’s auction, but did not set a date for it.
While the buildings have been foreclosed and await a new owner, not all businesses or residences in the mixed-use developments will be impacted. GreenState has no claim to any commercial or residential units in the properties that have been bought individually.
“The recent foreclosure filings involving properties downtown, while understandably notable, mark a natural point of market correction – a signal of a resilient and maturing real estate ecosystem,” said Betsy Potter, executive director of the Iowa City Downtown District, said Friday. “These changes can open the door for a new generation of local ownership, community investment and renewed energy in some of our most iconic spaces.”
The 15-story Chauncey is home to movie theaters, a bowling alley, hotel, restaurant, coffee shop, commercial and office space and condominiums.
FilmScene, the independent movie theater with two locations in downtown Iowa City – one in The Chauncey and one at the Pedestrian Mall – will continue to operate normally, it said.
“To clarify, FilmScene owns its condominium units at The Chauncey and has lease options for our Ped Mall location through October 2030,” FilmScene said in a statement. “This foreclosure does not involve us directly and we do not anticipate any immediate impact on our operations.”
However, Plaza Towers, the 14-story development that includes the Bread Garden Market, has about 70 units that will be affected by the foreclosure.
The $57 million mixed-use Chauncey opened in 2019 after a lengthy legal battle.
An organization called Coalition Against the Shadow, formed in response to the project, took issue with The Chauncey’s height when the project was proposed and filed a lawsuit challenging an Iowa City Council rezoning decision that made the project possible.
After a lengthy legal battle, which began in 2013 and eventually reached the Iowa Supreme Court, the lawsuit was determined to have no standing and was denied further review in April 2016.
The city approved $14.2 million worth of tax increment financing, $2.1 million through the acquisition of the land and $12.1 million through tax rebates over the course of 25 years.
Marc Moen and Robert J. Jett had three loans each secured by three mortgages which total over $1.3 million, including $67,046 of accrued interest and other fees, court records show.
The total Chauncey debt is over $19.8 million, which includes accrued interests and other fees. Plaza, Monica Moen, Marc Moen, Central Park and Michael Moen each, jointly and severally are responsible for payment of Chauncey debt. Payment of debt is also secured by the Chauncey mortgage, which grants GreenState a first mortgage in the Chauncey real estate, according to the petition.
The Plaza debt consists of two loans totaling over $5.2 million, which includes $249,484 of accrued interest and other fees. Chauncey, Monica Moen, Marc Moen and Michael Moen are responsible for payments of the Plaza debts, according the petition.
The Central Park debt is $386,275, which includes accrued interest of $17,341 and other fees. Monica Moen and Marc Moen are each responsible for payment of this debt.
The Iowa City Health Club debt is $23,840, which includes $943 of accrued interest and other fees. Marc Moen is responsible for this loan payment.
According to court documents, the defendants defaulted on their loans and entered into a forbearance agreement on June 17, 2024. The debts were not paid on or before Dec. 31, 2024, as required by the agreement.
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