28-story high rise gets Cedar Rapids staff support

CEDAR RAPIDS - City staff are recommending a proposal for the tallest building ever in Cedar Rapids - a 28-story, $103 million tower - for a vacant plot in downtown Cedar Rapids.

One Park Place with a grocery store, hotel, rooftop restaurant, a spa, condos, and parking ramp got the nod over two other projects, which officials said they also liked: a $33 million, 11-story proposal by Aspect Design and the $33 million, 14-story Avalon Sky Lofts.

'We keep hearing from those who submitted letter's of intent, calling, wanting to know how soon we'd get an answer,” said Dave Zahradnik, principal architect with Neumann Munson, a lead developer on One Park Place. 'They are excited, and we are excited.”

A panel of city staff and industry experts in commercial finance, architecture, development, construction and downtown stakeholders reviewed the proposals and recommended City Council pursue negotiations with One Park Place. The nine-member City Council will need to sign off, likely at its meeting on May 24, and additional contingencies would need to be met after that, including a financing and public assistance plan.

The panel recommends completing a more thorough financial analysis 'given the scope and complexity” of the project before the city signs a development agreement.

One Park Place proposed a much larger project than the city had envisioned. The city sought bids for three city-owned parcels at the southeast corner of First Street SE and Third Avenue SE next to the Paramount Theatre, but the One Park Place plan also depends on securing two additional adjacent parcels at 330 and 320 First Street SE.

The proposal states 'additional parcels being secured by the development team.” One of those property owners, Alice Risk, who owns 320 First St. SE, said she hasn't made up her mind.

'I didn't decide anything,” Risk said. 'I don't know myself what I want to do.”

When asked if she is open to selling it she said, 'maybe,” but added she and her husband purchased the space as an investment property. It has a one-story building, which Risk said was recently remodeled although is not occupied.

The property value is listed as $323,600 on the Cedar Rapids Assessors site.

The second parcel at 330 First St. SE, which has one-story building occupied by Enlighten Technologies, has a letter of intent signed by Richard Pundt. Enlighten would be part of One Park Place.

'We are committed to proceeding,” Pundt said.

Renderings of One Park Place show a towering, paneled building across from Smulekoff's and next Alliant Energy and the Paramount with a plaza feel and dining patios outside the ground floor grocer.

Six companies, including Bread Garden Market and Kinseth Hospitality, signed intents to be part of the project. Zahradnik said purchase agreements are still being negotiated but having the letters will help secure financing.

'A good share of them will own their share of the building, so they have a stake in building,” Zahradnik said. 'Having them secure helps us with getting financing.”

The public assistance will need to be ironed out. Developers sought $23 million up front in public money, which would require the city to sell bonds and would be unprecedented in Cedar Rapids. City officials said that would not work, but they are open to negotiate.

'We haven't gotten into deep discussions on that yet,” Zahradnik said. 'The city expressed concerns, but I think there are options we can work with. We will see what (the city) wants to put on the table. There is a lot of wiggle room” to reach a deal.

Cedar Rapids Mayor Ron Corbett had said he thought the three projects were different enough other downtown land should be identified for the two projects that were not selected.

Steve Emerson, of Aspect Designs, said he thought all three projects were good, but he doesn't foresee finding a new location for his project, which included a grocery, medical clinic, parking and 11 luxury condos.

'That wouldn't make any sense for my project,” said Emerson, who is also redeveloping the Smulekoff's building among others. 'My project was based on what was lacking in downtown. It would make no sense for my project if the need is not there.”

Fred Timko, the developer behind the Avalon project, did not return phone and email messages seeking comment.