CEDAR RAPIDS — City Council members applauded a major redevelopment that will change the face of a downtown Cedar Rapids block as they backed tax subsidies for the $11 million project on Tuesday.
The project is a new three-story, 40,515-square-foot Skogman building at 427 First Ave. SE.
The project requires demolition of properties in the 400 block of First Avenue SE, including the buildings housing Albert Auto Service and Sub City and the Bever Building.
“I just love it, and it will be a great asset to the community,” council member Ann Poe said of the plan.
She credited the Skogmans, a prominent local family heavily involved in real estate, for making the investment and keeping jobs in the downtown.
The subsidy provides the Skogman Construction Co. a 10-year, 50 percent property tax reimbursement on new value, which amounts to $800,000 refunded out of $2.2 million taxes paid over 10 years.
The Iowa Economic Development Authority has awarded the project $750,000 in redevelopment tax credits.
The facility would support about 180 employees, said Kyle Skogman of the Skogman group.
“This will be a massive improvement of what that corner has been,” council member Scott Overland said. “The increased property value is huge. It’s a win all the way around for the city to have that investment made.”
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