The Chauncey building will go to a sheriff’s sale on Nov. 18, a public auction held to satisfy a debt incurred by developers Marc Moen and his associates, leaving businesses inside to work through uncertainty.
The decision comes after a court issued judgment, with all money from the sale going to GreenState Credit Union, the plaintiffs on the case.
Three other buildings will also go to the sale, including Plaza Towers, Park@201, and the parking lot on the intersection of South Clinton Street and East Burlington Street. Plaza Towers on 221 E. College St. and Park@201 on 201 E. Washington St. are both mixed use buildings, housing condos and commercial space. Both also overlook the Pedestrian Mall of Iowa City.
GreenState Credit Union foreclosed on the four buildings in April after filing a suit against Moen and his associates on Feb. 4.
The lawsuit claimed the real estate developer and his associates had defaulted on roughly $28 million in payments on loans made between 2016 and 2023.
According to court documents, the plaintiff lists 34 promissory notes as evidence of the $28 million in payments outstanding from the developer. These notes were a written promise to pay a certain amount of money on an agreed upon date, which Moen and his associates were unable to meet.
In its court document, GreenState called all efforts to restructure or manage the debts “fruitless” and stated it was being forced to foreclose and file a motion for summary judgment. According to court documents, the motion was filed to “enable a party to obtain judgment promptly and without the expense of a trial where there is no fact issue to try.”
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The courts granted a summary judgment in favor of GreenState on April 16, ending the case without a trial. It also allowed the credit union to collect collateral from businesses like Iowa City fitness center theGYM, such as inventory, chattel paper, which includes documents for payment obligation, accounts, equipment, general intangibles, consumer goods, and fixtures.
The Chauncey is most recognizable for being the tallest building in Iowa City, and the other properties going to the sale are also home to several local businesses. Plaza Towers is home to the Bread Garden Market, HotelVetro, and condominiums.
The Chauncey currently houses FilmScene, Hotel Chauncey, fix! Coffee, SpareMe Bowl & Arcade, and 65 condominiums. The foreclosure does not apply to the entire building; only units not occupied by the owner, including those found in the Chauncey. These units will go to resale, as, according to court documents, the units are “no longer subject to [GreenState’s] claim.”
Heather Soseman, who has worked as the general manager of SpareMe for almost six years, said the sheriff sale leaves the businesses uncertain about the future of the space.
“It really depends on who the new owner is. So it could not affect us at all, and nothing could change, but there is always that possibility,” she said.
Soseman also said while there have been phone calls and meetings with people “at the top” of the issue, like Moen and GreenState, no one has personally come to the SpareMe team to speak with them.
Soseman said she is personally invested in the success of the space and legally. The future owner would have to adhere to their lease but there is typically renegotiation when new owners are involved. Soseman said she doesn’t know who would show up to the sale, but is curious as it could affect the future of SpareMe.
“I’m just kind of curious to see what money shows up at the auction,” Soseman said, “For me, it’s about understanding who owns the space.”
Hawkeye Hotels, the company that owns SpareMe, she said, intends to keep the bowling alley in the Chauncey space.
“Hawkeye [Hotels] has the intention of staying,” she said. “They have a lease for the space. They are local and want to keep this business.”
FilmScene, a nonprofit cinema in Iowa City, posted on its social media in April after the foreclosure was announced stating it was aware of the public concerns regarding its Chauncey location and thanked residents for reaching out.
“FilmScene owns its condominium units at The Chauncey and has lease options for our Ped Mall location through October 2030,” the post said. “This foreclosure does not involve us directly, and we do not anticipate any immediate impact on our operations.”
The post also thanked the credit union for its “steadfast support” and wished all parties the best in resolving the matter.
Other buildings included in the foreclosure will not go on sale in November, including 118 E. College St. on the Ped Mall, which houses the original Filmscene location, after the local theater purchased the property in August.
The sale will be held at the Johnson County Sheriff’s Office and is open to the public with all bidders must be 18 years or older, according to the Johnson County website. The sales can be considered high risk, as bidders are not granted access to the property before the sale.