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Cedar Rapids, Iowa 52401
Cedar Rapids to invest $5.3M into City Annex, City Services buildings
City staff say the phased renovation project is an overall space-, cost-efficient measure
Jul. 8, 2025 5:04 pm, Updated: Jul. 9, 2025 7:33 am
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CEDAR RAPIDS — Cedar Rapids city leaders are investing upward of $5 million into a series of building renovations that will lead to the relocation of several city departments in the name of space optimization.
City council members on Tuesday voted unanimously to approve a $5.3 million contract to Peak Construction Group for renovations at the City Annex, 101 First Ave. SE, and the City Services Center, 500 15th Ave. SW.
The contract came in nearly $1 million above early estimates in a discrepancy city staff attribute to rising construction costs. Still, staff maintain the renovation remains the most space- and cost-efficient option when compared to new construction.
“The cost of renovating the City Annex remains below the original estimates for new construction, which ranged from $10 to $20 million,” said Assistant to the City Manager Amanda Grieder. “… The difference between the initial estimate and the lowest qualified construction bid reflects accurate increases in labor and material costs.”
The majority of the work will take place at the City Annex building, located across from City Hall. The structure — previously owned by United Fire Group — was purchased by the city in 2022 for $2.5 million.
When purchased, the roughly 27,000-square-foot building housed existing commercial tenants with ongoing leases. Those leases ended this year, opening up the space for the city’s renovation project.
Per a staff presentation, the $5.3 million price tag will cover “phase one” improvements at the City Annex with phase two to be bid at a later date with a focus on offering additional training space for the city’s police department.
Phase one will focus on the west half of the annex building’s first and second floors, as well as some portions of the basement. Specific improvements include the addition of a second elevator, among other safety and accessibility upgrades.
“The city is taking a smart first step to improve services by making departments easier for residents and businesses to access,” City Manager Jeff Pomeranz said via email. “Remodeling an existing building near City Hall is a cost-effective step that will increase our operational efficiency while reinforcing the city’s commitment to building a vibrant downtown.”
The phase one contract also covers select interior renovations at the City Services Center, located at 500 15th Ave. SW, for better space optimization. Once completed, the project will kick-start a series of moves for various city departments and offices.
The city’s human resources department will move from City Hall to the City Services Center, where the Parks & Recreation Department will move from the first to the second floor to better accommodate the growing department.
Customer service counters at the City Services Building also will be consolidated to bring public-facing departments together and improve the visitor experience.
The City Annex building in turn will house the City Assessor’s Office, as well as the Economic Development Department and additional meeting space for interdepartmental collaboration.
The city will seek bids for phase two after the completion of phase one, which is expected to wrap up next summer.
The second phase will focus on renovating the remainder of the City Annex’s first floor and basement into a modern training facility for the Cedar Rapids Regional Police Academy, thus freeing up space at the Downtown Police Station.
Comments: grace.nieland@thegazette.com
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