WATERLOO -- The City Council has signed off on a land swap to help a neighborhood housing initiative and help a parking shortage at the Black Hawk County Courthouse.

Waterloo council members unanimously approved their end of a three-way deal Monday by approving agreements with the county and private developer David Deeds, of Cedar Valley Restoration and Development.

Deeds has already completed construction of a townhouse-style home in the block bounded by East Seventh and Eight, Sycamore and Lafayette streets, and has room for two more affordable homes. Black Hawk County is donating additional land in the block to the city, which is turning it over for Deeds to construct three more homes and a multi-use building on the property.

A development agreement with Cedar Valley Restoration and Development requires the additional construction in return for the free land.

Meanwhile, Deeds is negotiating a development agreement with the city for a major riverfront housing initiative -- including condominiums and single-family homes -- along the Cedar River front just south of his existing projects.

To compensate Black Hawk County for the donated property, the City Council agreed to sell the county a portion of its parking lot along East Sixth Street between Sycamore and Lafayette streets for $70,000. The city currently has metered and leased spaces in the parking lot, which is used primarily by jurors. The county would then decide how to handle parking in the lot.

Community Planning and Development Director Don Temeyer said the sale price to the county was based on improvements the city had invested in constructing the lot.

In other business, council members:

-- Approved a development agreement with Powers Manufacturing Co. for a $1.2 million expansion of the company's site along Sycamore Street near East 11th Street. In return for the expansion, the city will donate 1.6 acres of land to the company and provide graduated tax rebates for five years on the value of the expansion.

-- Opened bids on plans to extend the left-turn lanes on University Avenue for traffic turning onto Ansborough Avenue. Aspro Inc. of Waterloo was the sole bidder on the project at $82,646, which was below the $84,000 estimated cost.

Contact Tim Jamison at (319) 291-1577 or tim.jamison@wcfcourier.com.