Long-awaited redevelopment of ‘Banjo Block’ begins in Cedar Rapids

CEDAR RAPIDS — A “transformational” mixed-use development fueled by a collaboration of the private and public sectors will bring new life to a long-vacant downtown Cedar Rapids site.

After plans for the site’s redevelopment faltered over the years, work is now beginning on Annex on the Square, a $49 million mixed-use, multifamily development on the so-called Banjo Block, at 515 Fourth Ave. SE, named after the Banjo Refrigeration Equipment Co. that operated there. The four-story, approximately 200,000 square-foot project will bring a mix of commercial space and over 200 residential units serving a variety of income levels.

“It’s a win-win for the community and a really exciting improvement for all,” City Manager Jeff Pomeranz told The Gazette.

It will add 224 rental apartments — mostly one- and two-bedroom units, with 22 at market rate rents and the rest for those earning up to 60 percent of the area median income, said Graham Parr, a development analyst with the builder, TWG Development.

Additionally, the development will feature 1,176 square feet of commercial space on the ground level, 147 parking stalls and amenities, including a rooftop patio and pool. Construction is slated to wrap up by January 2024.

“A lot of this times that’s teachers, entry-level fire department, police officers, city workers — that all falls into the people that qualify to live in this sort of facility, so it really is transformational in keeping people where they currently live or where they’d like to live,” Parr said.

Mayor Brad Hart said workforce housing has been a major focus for the city, and this provides an opportunity to address that need and bring more units online.

“This development will be a showcase for our community,” he said.

Pomeranz said the site was among the first he visited when he first toured Cedar Rapids before assuming his current role in 2010. “It became evident early on in my tenure in Cedar Rapids that this is an area with great potential that needed to be redeveloped,” Pomeranz said.

Many community partners have targeted this spot as a prime area for redevelopment, Pomeranz said. The ultimate development plans represent “a community accomplishment” that will bring a sense of vibrancy to this part of town, he said.

The Cedar Rapids City Council in January approved a development agreement with Indianapolis-based TWG, eyeing the potential to transform the area adjacent to the Cedar Rapids Public Library and Greene Square.

But this was not the first proposal for the site. Another developer, SC Bodner, also from Indiana, in 2019 withdrew a more than $30 million plan for the property.

Cedar Rapids agreed to reimburse up to 100 percent of the incremental taxes generated by the project, reaching a total present-day value of $6.5 million, or until the city makes 16 payments of the tax increments. The city would reduce its incentives based on receipt of state tax credits.

Council member Scott Olson said 200 to 300 housing units have been added to the downtown area each year, and the current total is over 1,500 units.

Over the next two to three years, Olson said there are eight other projects planned for the downtown area including NewBo, Czech Village and Kingston Village. These projects range from 40 to over 100 units — all adding to a growth of downtown housing, which he said officials hope will boost restaurants and other businesses.

“We’re seeing the future of housing being an important part of the growth and the vitalization of the downtown area,” Olson said.

Council member Dale Todd said it’s not easy to do projects of this scale during a pandemic, which has caused supply and labor shortages.

“You either decide to not compete and just roll up and go, or you decide to compete and you decide to continue to the progress that’s been going on in this community the last couple of years,” Todd said.

Cities die when their downtowns languish, Todd said, but Cedar Rapids chose to invest in its downtown with flood control, amenities and a diversity of housing options.

“It’s going to help transform our downtown, and with the synergy that it’s going to bring to the heart of the city, I can guarantee that when you come back here five, six years from now, our downtown is going to be different than anybody could have imagined,” Todd said.

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