Looming I-JOBS review likely won't impact Corridor projects

Gov.-elect Terry Branstad's I-JOBS bombshell will likely have little impact on Eastern Iowa flood recovery projects, though Iowa City and the University of Iowa are wondering about the impact, local officials said.

Cedar Rapids Mayor Ron Corbett said Thursday that the city of Cedar Rapids has signed contracts with the state for flood-recovery projects receiving I-JOBS money.

“None of the funding should be in jeopardy,” Corbett said.

Branstad on Thursday said he wants to evaluate I-JOBS projects not now under contract to determine whether they are a good use of taxpayers' money and if they should move forward.

The Cedar Rapids projects, Corbett said, are all worthy flood-recovery projects. In some instances, he noted the city has not yet drawn down any of the state grant money.

That status of I-JOBS projects at the University of Iowa was not immediately available late Thursday.

State Board of Regents officials were looking into whether regents projects would be affected by Branstad's proposed review.

The regents received at least $115 million for projects related to flood recovery at the UI and an expansion of the College of Veterinary Medicine facility at Iowa State University.

And while those regents projects are called I-JOBS projects, they actually have a different funding source than the rest of the state's I-JOBS projects because the regents have their own bonding authority, officials said.

In Iowa City, the I-JOBS board has awarded Iowa City $5.5 million for the relocation of its north wastewater treatment plant, which flooded in 2008, and said it could provide up to $6.5 million more. The $63 million project is in the design stage, interim City Manager Dale Helling said.

The city has a signed agreement with the I-JOBS board, Helling said.

“We always thought that was a commitment,” he added, but noted it's not clear exactly what Branstad's comments might mean to the project, where work has not started.

In Coralville, City Administrator Kelly Hayworth said he did not believe Branstad's proposal would affect any of Coralville's I-JOBS projects because the city has commitments for them.

Construction on Coralville's First Avenue flood recovery and mitigation project, funded by a $27 million I-JOBS grant, began earlier this year.

In Linn County, Darrin Gage, Linn County director of policy and administration, said the county has signed contracts for all three of its I-JOBS projects.

They are $4.4 million to assist in renovating the Jean Oxley Linn County Public Service Center, 930 First St. SW; $3.69 million toward the $3.7 million Juvenile Justice Center; and about $5 million toward the $14.6 million Linn County Community Services/Options of Linn County building at 26th Avenue COurt and 12th Street SW.

The major I-JOBS grants to Cedar Rapids include:

• $5 million for the new public library.
• $15 million for the new Event Center.
• $5 million for the Public Works Building.
• $5 million to renovate the Paramount Theatre.
• $5 million for the flood-ruined downtown steam system.
• $4.4 million for renovation of the Veterans Memorial Building.
• $2 million for the former federal courthouse.
• $3.31 million for the reconstruction of Sixth Street SW so it doesn't flood at Prairie Creek.
• $1.075 million for a riverbank amphitheater.
• $6.6 million to build a new west-side fire station and help fund a new Central Fire Station on First Avenue East.
• $380,250 for the purchase of flood-blighted properties next to the Paramount Theatre.

Reporters Rick Smith, Diane Heldt and Gregg Hennigan contributed to this report.

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