Westdale developer seeks half of city-backed loan

The Cedar Rapids City Council on Tuesday will decide whether to pay Frew Development Group half of a $4.5 million bank loan that it agreed to guarantee for infrastructure improvements at Westdale.

Westdale Executive Vice President Todd Nelson said two requests for payment were submitted to the city - one requesting $2.225 million and another for the full $4.5 million. After consulting with city staff, Frew Development asked that the City Council agree to disburse $2.225 million.

Todd Nelson, executive vice president of Frew Development and Westdale, said his company has exceeded 50 percent of the development needed to satisfy distribution of one-half of the $4.5 million loan.

'We have generated 63 percent,” Nelson said. 'When we get the final agreement signed for a hotel, we will have exceeded 125 percent.

'We also have a pending land sale, which will increase the amount of development. We are ahead of schedule.”

The $4.5 million loan is the second phase of an $11.5 million loan from Cedar Rapids Bank & Trust that the Cedar Rapids City Council agreed to guarantee on June 23, 2015. The Phase One loan of $7 million was previously distributed.

Kinseth Hospitality Companies of North Liberty and Frew Development are planning an 82-room limited service hotel at the main entrance to Westdale on Williams Boulevard SW. Nelson said ground breaking for the hotel, designed to appeal to millennials, is tentatively set for Sept. 1.

Denver, Colo.-based Frew Development is redeveloping Westdale, formerly a 900,000-square-foot mall on 72 acres. The $90 million mixed-use development will be anchored by J.C. Penney, Younkers and Burlington Stores.

Nelson said construction of a new 'ring road” was completed on Friday and opened to the public Monday. He said paving of roads through the middle of property will be done by the end of the summer.

Nelson said potential tenant interest in Westdale was fairly high at last month's International Council of Shopping Centers convention in Las Vegas.