Q&A: Phil Wasta talks MedQuarter planning economic development push

Phil Wasta, executive director of the MedQuarter in Cedar Rapids, was asked about the current status of the regional medical district.

Has the move of physicians and other health care providers to Physicians' Clinic of Iowa created a glut of empty commercial office space?

The front end of it has been a reshuffle where there has been some loss by existing commercial structures. The main players absorbing some of that space have been the hospitals.

UnityPoint (Health-) St. Luke's purchased the former Cardiologists PC building (1002 Fourth Ave. SE). Mercy Medical Center absorbed the former PCI building (600 Seventh St. SE).

The grade-A space has pulled some of the tenants away from the grade-B and grade-C space. As the demand grows, the grade-B and grade-C players will upscale and remodel so they are playing on the same level.

What opportunities will they have to attract tenants?

Not everyone can afford PCI, which comes at a premium price to be part of something that has a pavilion atmosphere. If you want to co-locate and be in the MedQuarter so that you are near all of those resources, there are secondary players looking to fill space in their buildings.

What's next for the MedQuarter in terms of recruiting additional service providers?

We really need small businesses. We need to pull in some of the clinics and ancillary players that can see the benefit of co-locating in the MedQuarter. The grade-B and grade-C commercial properties would be a good fit for them.

What should the MedQuarter be doing that it has not been pursuing as a high priority?

We are looking for economic development opportunities to have conversations and open the doors to small business owners.

We are telling them that we have resources. We can provide them with contacts in the MedQuarter who might be willing to let them meet with their staff and talk about how their product or service might work in their clinic.

We want to use the MedQuarter to be an economic engine for Cedar Rapids. We want to have some internal generation beyond health care delivery, much like what has been happening in NewBo.

We understand the Physicians' Clinic of Iowa building has been filled two years ahead of schedule. What's next?

PCI is doing a master plan initiative, where it is considering whether to do a second building. There is a lot of underutilized land in the district that is used for surface parking.

If the highest and best use of some of the land owned by PCI is a second building, it could always go vertical and build another parking ramp.

When the MedQuarter was formed, the possibility of an extended stay hotel for patients and their families was discussed. What is happening?

I am working with UnityPoint St. Luke's Hospital and Mercy Medical Center, the largest property owners in our 55-block district. I have had hotel developers in for meetings and tours, and we have more meetings planned for the end of this month and early June.

We have targeted a couple of pieces of property that we think would be perfect hosts to a 75- to 100-room extended-stay hotel. That is absolutely tops on my list of what this district needs from the standpoint of additional amenities.