Cedar Rapids council planning a lease manuever so new City Hall can seek historic tax credits for renovation

CEDAR RAPIDS - The City Council is planning to lease the city-owned, former federal courthouse - the new home of City Hall - to an entity called Courthouse II Co., which will lease the building back to the city.

The maneuver is required to allow the city to seek $2.4 million in state and federal historic tax credits to help in the $7.8-million transformation of the building into City Hall, according to a city staff memorandum to the City Council.

Eligibility for tax credits requires the city to enter into a relationship with an eligible entity, which Courthouse II Co. apparently is designed to be.

The cost of the building renovation also is being helped by a $4.1-million state I-JOBS grant.

The council will hold a public hearing on April 12 to discuss the lease arrangement.

The council expects to move into its new council chambers in the former courthouse on April 26.

City Manager Jeff Pomeranz said this week that an open house will take place before April 26 so the public can see the council chambers, which will occupy the building's large courtroom. A Works Progress Administration mural, which had been painted over, has been uncovered and is being restored in the room.

Pomeranz said the full renovation of the building with city offices will be complete in 2012.