After pause on federal funds, NewBo City Market to move forward with expansion

CEDAR RAPIDS — The planned expansion of NewBo City Market now can move forward following the release of previously paused federal funding.

Market leaders in February announced that the expansion had been put on hold amid a flurry of executive action that paused the allocation of certain federal funds. Those funds recently were released, according to a market-issued news release Thursday, and a groundbreaking ceremony is scheduled for September.

“After the 2008 flood, NewBo City Market played a key role in reimagining what recovery and resilience could look like in Cedar Rapids. Now, we’re stepping into a new chapter — an economic renaissance built on innovation, inclusion, and local pride,” Julie Parisi, NewBo City Market executive director, said in a statement. “This expansion is about more than bricks and mortar. It’s about continuing to be a catalyst for bold ideas, thriving small businesses and a vibrant community.”

The market, which opened in 2012, offers space for small business owners to get their start and be connected with mentors and grant opportunities.

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The roughly $5.5 million expansion will create more shopkeeper space while also adding an upper mezzanine level, indoor performance stage and neighborhood grocery store. Fundraising for the project began in May 2024, and roughly $4.25 million has been raised to date.

The single largest contribution was a $1.3 million award from the U.S. Economic Development Administration.

The award first was announced last September, but those funds came into question after President Donald Trump in January announced a pause on certain kinds of aid.

NewBo City Market board of directors subsequently voted to delay construction to allow time to determine the fate of the funds without interrupting the market’s spring and summer busy season.

While funds earmarked for the market’s expansion now have been released, the pause has caused issues related to cost increases and construction delays. Construction was scheduled to begin early this year, with completion in the fall. Now, completion is estimated for May 2026.

Further, questions around rising construction costs and other price increases related to the ongoing economic uncertainty have leaders worried about the final price tag.

With that in mind, NewBo Market is continuing its fundraising campaign to support the project and raise the remaining $1.25 million. Through August, donations will be matched up to a total of $50,000 after a community match donation from David Maier and Matt McGrane.

Those interested in donating can find information at newbocitymarket.org/nextlevel.

Comments: 319-368-8999, grace.nieland@thegazette.com