Coralville to consider tax incentives for Iowa River Power Restaurant renovation

(Editor’s note: This story was updated 4/29/25 to correct the name of the LLC now involved in the project.)

CORALVILLE — The Coralville City Council is set to consider approving tax incentives next month for the renovation of the former Iowa River Power Restaurant, after Old Gold & Black LLC announced plans last fall to bring a restaurant back to the vacant building.

The development agreement, if approved, would offer rebates for any additional tax revenue the property would bring in after the renovation for the next 10 years, beginning in 2028. The renovations are set to be complete sometime in 2027.

City Attorney Kevin Olson said the building brings in about $86,000 a year in property taxes at its current assessed value. Under the proposed development agreement, the city would rebate any property taxes over that amount.

“ … (T)his is different from most of our agreements. This sets the base that the city will continue to collect versus what we would normally do, and they would get anything above our base amount that we collect, ” City Administrator Kelly Hayworth said Tuesday at a City Council meeting.

The building, 501 First Ave. in Coralville, was home to the Iowa River Power Restaurant for 46 years until its abrupt closure in November 2023, when restaurant owner Danise Petsel received an unexpected eviction notice.

The building will be undergoing historic renovations with plans to be listed on the National Register of Historic Places. Some of the planned preservation efforts include restoring the original glass open front of the building and replacing windows. The building, a former power plant along the Iowa River, dates to the early 1900s.

A public hearing on the development is set for May 13 at the city’s regularly scheduled council meeting.

Hawkeye alum involved in redevelopment

Old Gold & Black LLC purchased the building for about $3 million, according to the Corridor Business Journal. Managing partner Mark Kaufman, a University of Iowa graduate, is the founder of Athletico Physical Therapy, which has over 900 locations around the country.

“The future restaurant is more than just a business endeavor. It’s about honoring the past and giving back to a community that means the world to us,” Kaufman said in a statement last year. “We want to create a space that feels like home, where people can gather, celebrate and connect over great food.”

More details about the restaurant will become available after a restaurant partner has been determined.

The Iowa River Power Restaurant first opened in 1977 after the property changed hands between the city of Coralville and local entrepreneurs a couple times between 1971 and 1976. Decades later, Flannigan’s Bar & Grill, an Irish-themed pub, opened next door in the same building.

Danise and David Petsel bought Iowa River Power and Flannigan’s in December 2002. Flannigan’s closed in December 2022 after at least 20 years in business.

Elijah Decious of The Gazette contributed to this report

Comments: megan.woolard@thegazette.com

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