ITC Midwest purchases southwest Cedar Rapids facility as new headquarters

CEDAR RAPIDS — Electricity transmission company ITC Midwest is relocating its headquarters from a leased space in downtown Cedar Rapids to a purchased facility in the redeveloped Westdale Mall area — providing growing room for the company.

Leaders of the transmission company that owns and operates the regional high-voltage power grid recently closed on the facility at 3165 Edgewood Parkway SW, which was built in 2002. Renovations are expected to wrap up by summer 2024, with the goal of moving to the new office in the fall of next year.

Since taking over the transmission system in December 2007, ITC Midwest has been in leased space at the Palmer Building, 123 Fifth St. SE. That lease ends in 2024, providing company leaders an opportunity to evaluate new locations for its headquarters.

The move is a boost for the growing Westdale area, which has undergone significant transformation as developers march toward the finish line of the mall’s $90 million makeover in the coming years.

“The Westdale Mall area has become a major economic hub in Cedar Rapids, and it provides the perfect environment for ITC Midwest’s new company headquarters,” ITC Midwest President Dusky Terry said in a statement. “Our decision to purchase a newer building with space configured for a modern office environment reinforces our decision to plant roots and maintain permanent headquarters in Cedar Rapids.”

Alliant Energy and Central Iowa Power Cooperative, the two largest utilities served by ITC Midwest, also are in Cedar Rapids, along with many businesses and industrial companies the company serves.

“For years, ITC Midwest has played a vital role in powering our homes and industries. This new headquarters facility illustrates the company’s commitment to keeping the lights on in Cedar Rapids and the greater region,” Cedar Rapids Mayor Tiffany O’Donnell said in a statement. “We are pleased ITC Midwest chose to make Cedar Rapids its permanent home, adding momentum to a growing list of investments on the southwest side.”

The new location also provides easy access to the partner suppliers that make it possible for ITC Midwest to operate and maintain the regional power grid, and will help cut costs for the company. There will be an on-site backup generator at the new facility, allowing company personnel to use the office as a crisis management hub during power outage emergencies. And it will offer a single-floor, open-office layout with additional meeting and collaboration space.

“The Palmer building has served us well for many years, but currently, (our office is) on three floors,” marketing and communications manager Rod Pritchard said. “To have everybody on a single-floor environment should really make the collaboration even that much better, create a very positive environment for us.”

Of the 115 workers employed across ITC Midwest’s service territory, more than 80 work at the Cedar Rapids headquarters. The new facility will offer space for 120 employees to accommodate future growth.

Though a plus for Westdale, the move is a loss for downtown, where office space has become more vacant emerging from the COVID-19 pandemic — posing a challenge for city leaders who are looking to re-imagine the makeup of the urban core. With some work-from-home changes here to stay among major employers, the presence of fewer workers downtown has left businesses short on their previous daytime traffic.

Cedar Rapids officials are in the process of refreshing a downtown vision plan.

Pritchard said ITC Midwest offers a hybrid model where employees work remotely Mondays and Fridays but are in the office the other three weekdays. This decision, though, was less influenced by the pandemic and more a consideration of parking space and additional room for its growing workforce, Pritchard said.

“We do support a healthy, vibrant downtown area and we look forward to supporting the Cedar Rapids community including the downtown area in the future,” Pritchard said. “However, we're also really pleased to be moving to that redeveloping Westdale Mall area to help support growth in that part of the city. … It reinforces our decision to plant roots and permanently maintain ITC Midwest headquarters in Cedar Rapids.”

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