WATERLOO - The city is seeking a second round of buyout dollars to acquire flood-damaged properties not included in the initial program.

Waterloo City Council members last week approved an application seeking nearly $4.1 million for acquisition and demolition of 19 properties affected during the June 2008 floods.

The list includes 14 homes, two vacant lots and four commercial properties, including the Litzkow salvage yard on Black Hawk Road and the Operation Threshold, Courier and Midwest One Bank buildings downtown.

"This is very similar to the hazard mitigation (buyout) grant we received," City Planner Aric Schroeder said. "But this is intended to cover properties that didn't qualify for the hazard mitigation grant."

The city has been approved for $5.7 million to buy and demolish 44 flood damaged homes in Sherwood Park and on Sans Souci Island through the Federal Emergency Management Agency's hazard mitigation program.

The city's newest request is for federal Community Development Block Grant dollars the Iowa Department of Economic Development has earmarked for additional flood recovery buyouts. Local governments across the state will be competing for those grants funds, which are attractive because they don't carry all of the restrictions placed on the FEMA program.

Under the hazard mitigation grant, the acquired property must remain in public ownership and can't be built upon. The CDBG buyout would allow property to be redeveloped if it's not in the 100-year flood plain. It's also easier to acquire commercial property.

The city has been trying to relocate the Litzkow salvage yard, which is in the Black Hawk Creek flood plain, for more than a decade. Also included in the request is the remaining land on Sans Souci Island, which is not expected to be bought up through the FEMA grant.

The application also includes a number of homes and businesses that are not in flood plains but were damaged when water backed up behind the city's flood levee system. Both the Operation Threshold and Midwest One buildings on Jefferson Street remain vacant.

The Courier's property at 501 Commercial St. is being used but did suffer damage in the floods.

"The city approached us about the program, and this keeps our options open," Courier Publisher David Braton said. "It's not a commitment to sell at this point."

The buyout program is voluntary and none of the property owners have signed contracts agreeing to sell if the grant is approved.