Facing rising costs, NewBo City Market looks to ‘rightsize’ expansion

CEDAR RAPIDS — Facing rising construction costs amid a turbulent international materials market, NewBo City Market leaders are looking to “rightsize” the nonprofit business incubator’s upcoming expansion.

The market’s $4.3 million “Next Level Local” expansion project aims to bring additional shopkeeper space, an indoor performance area, community grocery store and upper-level mezzanine to the Cedar Rapids business incubator.

The project was delayed this summer, however, after cost estimates came in significantly higher than expected, pushing market leaders to reevaluate the project’s scope and identify opportunities for cost savings.

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NewBo City Market Executive Director Scott Wilson said that process resulted in a reduction of the project’s overall footprint to be smaller in scale while still maintaining all the initially proposed amenities.

“It might be smaller in some areas, but every one of the new and usable spaces that were in the original dream are still there,” Wilson said. “It’s been rightsized to be the right fit for what we need here at the market.”

Wilson attributed the unexpected cost increases to rising construction costs and uncertainty around international materials purchasing caused by evolving tariff policies. By reducing the footprint, he said the market was able to meet both its goals and its budget.

Construction on the project is now set to begin in early 2026 with completion expected in September. The market will remain open throughout construction, and work will be completed in phases to minimize disruptions to regular operations.

New bar setup, coworking space among upcoming changes

The first phase will focus on the building’s main entrance and primary seating area to ensure completion by the market’s busy summer season and for events like the annual “Rock the Block” concert series.

As part of that process, the existing bar and coffee shop spaces will swap locations and the NewBo Bar will gain pass-through window service to the front patio, meaning visitors can walk up and order drinks from outside.

Work will then begin on the rest of the expansion project, much of which will occur behind a construction wall so as not to disturb existing vendors. Still, Wilson said regular visitors will have a chance to see how the market grows.

“I anticipate that during the Rock the Block series that people who come on a weekly basis are going to be able to walk in, see the next upgrade and watch that evolution,” he said. “That’s something we’re really excited about.”

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The goal is to bring the bulk of the new amenities online simultaneously in the late summer or early fall. That includes the additional first-floor vendor spots, upper-level mezzanine and community grocery store.

The second level will include several new amenities, Wilson said, including an open-access coworking space, two conference rooms and a recording studio focusing on audio content creation for digital entrepreneurs.

The mezzanine also will feature a small therapy clinic, to be funded through a mix of grant funds and a donation from the Delta Dental of Iowa Foundation.

In lieu of full rent, the clinician will offer between 10 and 15 hours of free therapy services to NewBo City Market vendors and/or staff. The remainder of their time can be used seeing clients from the broader community.

“It’s an interesting part that most people haven’t thought about, but one that really fits our mission,” Wilson said. “Clinicians don’t necessarily come out of college as business people, so what a great incubator opportunity for a clinician to have an office that isn’t going to cost them a tremendous amount of money … where they can start to feel that business out and build a clientele.”

More information about the expansion is available on the market’s website at newbocitymarket.org/nextlevel, and additional updates will be posted over time as construction timelines amenities’ opening dates solidify.

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