City Council discusses plans for new medical district

The City Council Wednesday night followed up a Tuesday news conference by approving a “memorandum of understanding” between the city, the two hospitals and a physicians group to create the Cedar Rapids Medical District along and in the vicinity of 10th Street SE stretching from St. Luke's Hospital to Mercy Medical Center.

The idea for a medical district was first hatched back in 2006, council members said last night, and the idea has been part of two major planning documents, one in 2007 and one created earlier this year.

Christine Butterfield, the city's community development director, last night said medical districts in Rochester, Minn., Austin, Texas, and Chicago provide examples of what the Cedar Rapids district can become. Jason Hellendrung, a principal for consultant Sasaki Associates Inc. of Watertown, Mass., pointed to Grand Rapids, Mich., where that city's “Medical Mile” has seen an investment of $1 billion in new medical facilities and related development. Tenth Street SE can become Cedar Rapids' Medical Mile, he said.

Physicians' Clinic of Iowa on Monday announced it will build a new $40 million “medical mall” at Second Avenue and 10th Street SE to kick off new development in the medical district. The new medical building should be ready to open in late 2012 or early 2013. Hellendrung noted there also has been community discussion about a new cancer center and perhaps a dialysis center. He also envisioned a hotel, work force housing and an office building.

Butterfield's memo to the City Council suggests that the city will pay for infrastructure improvements to the district in the area between Seventh and 11th streets SE and First and Eighth avenues SE. The hospitals and PCI are planning to create a special taxing district and will use special tax levies to keep up the city's improvements, her memo states.

City Manager Jim Prosser noted Wednesday night that the two non-profit hospitals do not pay property taxes, however, other buildings in the district do and will. But he said the hospitals have indicated a willingness to participate in helping pay some of the costs in the district.

The plan is to build a regional reputation for the district and to make it easy for patients using the medical services in the district to be able to find what they are looking for easily.