A lawsuit brought by several landowners against the city of Jefferson has been concluded.

According to court documents, private housing developer, KCG Development, had requested on November 18, 2023 a parcel that was southwest of Ace Hardware to be rezoned from light industrial to multi-family residential, so the company could build a 50-unit rental structure. Following a public hearing to amend the zoning ordinance that was held on February 13, 2024, the city council then approved the change on March 12, 2024 by a 4-1 vote, with Council member Chad Sloan as the lone no vote. 

Court documents show that twelve landowners in the impacted area filed a lawsuit against the city on April 10, 2024 claiming that the city failed to act in accordance with the Comprehensive Plan, which created nuisance conditions and incompatible land uses by rezoning the property. The lawsuit also alleged that the rezoning was not supported by substantial evidence and it was unreasonable, arbitrary and capricious. Additionally, the lawsuit stated that one of the Council members that voted in favor of the rezoning had a conflict of interest.

Court documents state that the city filed its response on May 1, 2024 and wanted the lawsuit dismissed with one of the reasons being that the landowners failed to provide evidence that they would suffer any injury to passing the rezoning, such as higher taxes or injury to their land. 

Court documents show that the district court judge granted the motion to dismiss on June 27, 2024 saying that there was no link between having the rezoning passed and an injury to those who filed the lawsuit and the landowners failing to demonstrate a special injury or substantial interest that was different from the general public.

The court documents report that the landowners filed an appeal on July 18, 2024 and by November 13, 2025, the appellate court judge affirmed the district court ruling and dismissed the lawsuit. Court documents show that an appeal to the Iowa Supreme Court was filed by the landowners and the city filed its resistance and it was determined by the state Supreme Court that the further review of the appeal was denied. 

City Administrator Scott Peterson issued this statement following the final decision by the Iowa Supreme Court not to hear the appeal:

“The City appreciates the work of the Klass Law Firm and the thorough review by the judicial system. We’re pleased that the courts affirmed the City’s actions, and we remain committed to ensuring that all of our actions continue to meet that same high standard.”