Uncertainty grows regarding the construction of several retirement facilities in Johnson County after a local land developer declared bankruptcy and withdrew a site plan near Rochester Avenue.
Two Pella, Iowa, land developers filed Chapter 11 bankruptcy in federal court on March 5, causing stalled construction, canceled site plans, and a debt consolidation plan that may end in the sale of some retirement homes in Johnson County.
Chapter 11 bankruptcy is typically defined as a “reorganization” so that business can continue similar to before the bankruptcy declaration.
The developers, Jeff and Tina Ewing, of Pella, known primarily under the name Ewing Land Development and Services LLC, are responsible for multiple housing cooperatives around the state of Iowa as well as in two other states. A retirement facility under construction in Waukee has stopped construction.
The Ewings owe over 20 creditors millions of dollars, court records show.
The retirement facilities themselves are under the name Vintage Cooperative, and there is one in Iowa City, North Liberty, and Coralville.
Additionally, there is undeveloped land just northwest of Rochester Avenue and Scott Boulevard in Iowa City that was intended to be another retirement facility.
City of Iowa City Senior Planner Anne Russett said Ewing’s initial site plan to develop the land was submitted in October 2022 — around the time other facilities started taking root in eastern Iowa — and rescinded just last month.
The retirement homes are formed as a cooperative, which means residents possess shares of the residential complex instead of paying off or renting individual units.
Thomas Burke, an attorney for Des Moines law firm Whitfield & Eddy that represents creditors of Ewing’s in this case, said this plan of consolidation is plausible. He said the case is in its “relative infancy” and finding further legal issues in Ewing’s businesses is possible but not definite at this moment.
According to Burke, Ewing is reportedly attempting to consolidate his multiple corporate entities and his personal debt to evaluate the bankruptcy in one case instead of multiple.
Burke said sales of assets are always possible when settling bankruptcy, which designs an uncertain future for the Vintage Cooperative properties around Johnson County as well as the undeveloped land in Iowa City.
The Daily Iowan reached out to property managers who worked on Ewing’s behalf but did not receive a response. Ewing’s attorney Austin Parker also did not respond to comment.
The condition of retirement facilities is an important issue locally and remains an important element of senior living. Jeff Kellbach, the aging specialist for Johnson County Social Services, said senior housing is important to have in a community.
“What it does affect is options for folks that have the means, and we certainly want to see as many options available to folks,” Kellbach said.
He described his work with Section 8 housing and said there are oftentimes long waitlists for affordable housing. Kellbach described the cost to frequently be a “struggle” for seniors.
Considering the stature of Ewing’s properties, the costs at those facilities are much greater. Kellbach stated that those who reside in Vintage Cooperative facilities typically have an elevated monthly income of around $4,000.
Kellbach said having more housing options available to the elderly and retired community is beneficial to the community.