Multiuse project to bring townhomes, commercial space to Hiawatha

HIAWATHA — A proposed 48-unit townhome development in Hiawatha has garnered city and state support for its efforts to address the area’s growing need for workforce housing.

Construction is set to begin next year on Igram Village, a multifamily development planned near the intersection of Center Point and Robins roads. The mixed-use project also calls for the phased construction of at least three adjacent commercial buildings.

Preliminary project costs are roughly $14 million, and the work is being done on behalf of Cedar Graphics CEO Hassan Igram and his family in collaboration with local developer Chad Pelley.

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“It’s going to be really great for Hiawatha,” Pelley said. “The site is so conveniently located, ... and this type of housing is very, very desirable. I think it’s time for something like this in the community.”

Cedar Graphics is a commercial printing company located at 311 Parsons Dr., adjacent to Center Point Road in Hiawatha. The land behind the business has sat empty for years while conversations continued as to how it could best be used.

Stakeholders eventually settled on a mixed-use development given the recorded demand for workforce housing identified in recent housing studies and the site’s proximity to commercial corridors like Center Point Road and I-380.

The 48-unit townhome development will focus on the construction of two-bedroom units at market-rate rental prices. Pelley said the commercial development will occur in phases to be guided by market demand and tenant interest.

Hiawatha City Council members this week approved a development agreement with Igram Family LLC outlining city support and incentives for the project, citing its ability to boost the city’s housing stock and its comparability with the city’s goal of expanding the downtown core.

Per the agreement, the developers city will receive a 10-year, 100 percent tax abatement on the increased property taxes generated from the 48 residential units and a six-year, 80-percent tax rebate on the three phases of commercial development.

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“To see this come to fruition, it’s super exciting,” said City Manager Dennis Marks. “It’s going to change the look of the area, for sure, and it’s going to get us started with continuing the building of our downtown area into a city center.”

Seven area projects to receive state-issued tax credits

The project also received $899,335 in workforce housing tax credits from the Iowa Economic Development Authority, which awards the credits to housing developers across the state.

Igram Village was one of seven projects within the Cedar Rapids-Iowa City Corridor to receive workforce housing tax credits this year as part of a broader $35.9 million investment from the IEDA into 63 projects statewide.

Combined, those projects will lead to the creation of nearly 2,000 new housing units statewide. All applicants were evaluated on readiness, financing, community impact, developer experience and innovation. Other local projects awarded funding include:

Rose Cottage 2: The 58-unit townhome project in Cedar Rapids received $1 million in workforce housing tax credits. Overall project costs are estimated at $8.7 million, and project completion is set for summer of 2028.

Jordan Street Lofts: The Jordan Street Lofts project in North Liberty received $1 million in tax credits. The project is set to bring 96 apartment units to the Johnson County community with a mix of one- and two-bedroom units.

Grove Park Rowhomes: The state awarded $833,100 to phase one of the Grove Park Rowhomes project in Tiffin. The project is set to add 39 new units in its first phase.

Dows Agri-Community: Development company Twenty40 Building Concepts received $585,000 in tax credits toward the construction of 15 single family homes at the larger 179-acre Dows Farm Agri-Community under construction off Mount Vernon Road.

The Alburnett Family Housing Project: The six-unit residential project received $219,600 for development in Alburnett.

Southside Infill Project: Development company Prairie Rose Rentals received $106,800 for an infill project in the 1100 block of 15th Street SE in Cedar Rapids. The $1.4 million project will create three duplexes for a total of six new units.

IEDA received 137 applications this year for a total of $83 million in requested tax credits, and the selected projects were announced earlier this month. Of the $35.9 million awarded, half was reserved specifically for projects in Iowa’s smaller communities.

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