Work on American Building in downtown Cedar Rapids will begin this year

Construction of underground parking and asbestos removal will be the first steps in the renovation of the 102-year-old American Building in downtown Cedar Rapids and construction of an adjacent 10-story office building.

United Fire Group of Cedar Rapids purchased the 10-story American Building at First Avenue and Second Street SE in January 2014. The insurer announced plans in June 2015 to remodel the structure built in 1914 and construct a similar 50,000-square-foot building.

The Iowa Economic Development Authority Board has approved the project for tax benefits through the state's high quality jobs program. The renovation and new construction also qualifies for the city's standard economic development property tax exemption or reimbursement programs.

Randy Ramlo, United Fire president and CEO, said the company's board of directors approved the remodeling and new construction plans when it met Wednesday. He said the company believes the best long-term use of the basements in its buildings is underground parking.

'We should be able to get another 60 to 70 covered parking spots,” Ramlo said. 'As we continue to grow downtown, we already have a shortage of parking. To get into our ramp, you have to be a 10-year or longer employee.

'We need to find some additional parking solutions and that's why the underground parking construction will probably occur before the asbestos abatement in the American Building.”

Ramlo said work on the underground parking and asbestos removal likely will begin in the third or fourth quarter of this year.

'We have one tenant remaining in the building, so we need to wait to do asbestos abatement,” he said. 'We have acquired a building at First Avenue and First Street and we are renovating a space for Rush & Nicholson, which occupies the ground floor of the American Building.”

Ramlo said the new 10-story building, which will be constructed at the rear of the American Building, was easily designed for 'cubicle life.” He said the older American Building, with its interior pillars, has presented some challenges.

'We kind of designed it how we wanted it, but the cost didn't make sense,” Ramlo said. 'We kept going back to the drawing board and I think we have it down to a price that we can swallow. I think the two buildings will provide us with another 110,000 square feet of additional space.

'We decided that we need another skywalk to connect the American Building and some of our other locations, That skywalk will free up space in our 118 building for a couple of our information technology units.”