Cedar Rapids council endorses proposed $17.8-million New Bo project

CEDAR RAPIDS - The City Council this week applauded developer and builder Ahmann Companies for its proposed $17.8 million commercial and residential project in New Bohemia called The Depot.

Council member Justin Shields called the proposal 'a standout,” and he said it would set the tone for future development across the city.

'You do things right and set good standards, and that's what they are, and somebody's got to do better than you did, and they're going to have to go hard to do it,” Shields said.

Council member Ann Poe said The Depot proposal left her 'speechless.”

'This is amazing,” Poe said. 'I appreciate you stepping up and helping us revitalize this area of our city.”

Council member Monica Vernon, finishing her seventh year on the council, called the Ahmann proposal 'one of the most exciting ones” she's seen during her council tenure.

'It's a beautiful development,” Vernon said. '(New Bohemia) is already a vital area, and (this) is just going to add to that. … It's really up to date and a wonderful addition to our city.”

The Ahmann proposal features four side-by-side buildings to be built in phases between 2015 and 2017 on the 4.8-acre site of the former Iowa Iron Works plant in the 400 block of 12th Avenue SE. The NewBo City Market is next to the site and the new Geonetric Inc. building, which Ahmann Companies designed and built, is across 12th Avenue SE.

The Depot will feature a five-story building, with three floors of commercial space and two top floors with one residential unit on each floor.

The other three buildings are three stories and will hold a mix of market-rate residential units and commercial and office space. First floors on the three buildings will start out as parking and will be built out as demand dictates, said Chad Pelley, business development manager for Ahmann Companies.

Pelley said the company believes it has found a business that wants to buy the five-story building, construction on which should start next summer, he said.

The City Council on Tuesday approved the development plan and directed the city manager to negotiate an agreement with the developer.

Caleb Mason, the city's redevelopment analyst, said the city will ask $50,000 for the city-owned former industrial site and will provide Ahmann Companies a 10-year, 100 percent property tax break in a tax increment financing agreement.

The development is expected to start generating $450,000 a year in property tax revenue once the 10-year TIF period ends, Mason said.