Downtown Cedar Rapids business leaders seek 10-year SSMID taxing renewal

CEDAR RAPIDS - Downtown business leaders are asking for a 10-year renewal of a self-taxing district known as the Downtown SSMID, or Self-Supporting Municipal Improvement District, which is used to reinvest specifically in downtown improvements or initiatives.

SSMID leaders secured 58 signed petitions representing 84 or 46 percent of the 186 owners and $140.7 million or 62 percent of the $225 million in property value within the district boundaries.

'Moreover, we only allowed two weeks' time to sign and return petitions and fully believe support will grow to a super majority in the weeks ahead,” according to Dec. 28 letters from district executive director Casey Prince and board chairman Fred Timko to city staff and the City Planning Commission. 'This is a testament to the successes of the Downtown Cedar Rapids SSMID.”

The request will be considered during a special meeting of the City Planning Commission at 4 p.m. next Thursday at City Hall Council Chambers, according to an agenda released on Friday. The commission is an advisory body to the City Council, which would also need to approve the plans, tentatively in March.

The district is generally bordered to the northwest by Interstate 380, to the southwest by Third Street SW, to the southeast by Eighth Avenue SE, and to the northeast by Sixth Avenue SE.

The portion of property owners and property value backing the SSMID appears to exceed the state law requirement of 25 percent support to establish or renew a SSMID district, according to supporting documents prepared by city staff.

If approved, the SSMID will continue its self-imposed tax capped at $2.75 per $1,000 in property value annually for another 10 years beginning July 1, 2017, according to the meeting documents. The group also vows to work with city staff to establish roles pursuant to a Memorandum of Agreement to outline current and future responsibilities.

The SSMID district was established in 1986 to provide streetscape and beautification improvements, encourage development, and promote the district.

Priorities for the tax now include downtown economic development programs, communications and advocacy, capital improvements downtown, enhanced maintenance, and parking management.

In the past 10 years, the downtown SSMID has played a role in establishing a public-private Park Cedar Rapids partnership to oversee and expand downtown parking, the Cedar Rapids Metro Economic Alliance to advance economic development priorities, and has seen its borders expanded to include more property.

Property values have increased from $140 million to $215 million, there's 25 percent more businesses, and downtown living units have increased 62 percent, according to a 10-year report submitted by the SSMID. Public investment to the tune of $439 million, compared to $202 million private money has fueled growth in the downtown.

'The Downtown SSMID has demonstrated that since its inception it has operated to advance the interests of the property owners within its boundaries, and of the city of Cedar Rapids as a whole,” according to notes from city staff supporting renewal.

The SSMID also lines up with city future plans, the notes state.