Are denied developments in Cedar Rapids a concerning trend or an aberration?

CEDAR RAPIDS - A wave of recent housing development projects worth a combined $26.9 million have run into road blocks in Cedar Rapids, even though they had the blessing of the city's professional staff.

Developers, some city leaders and others are questioning why the City Council, facing significant neighborhood resistance, voted down rezoning requests for the $9 million Crestwood Ridge Apartments last October; the $9 million Commons on Blairsferry last November; the $1.4 million La Hacienda Stradt Addition duplex project on Hollywood Boulevard NW on March 29; and deferred a vote on the $7.5 million Lincoln Highway Lofts after the measure appeared doomed to fail on March 14. The City Council approved a second piece of the Lincoln project at the same meeting, but developer Keith Billick said the project wouldn't fly financially without both parts.

'The frustrating part is, very clearly, staff was able to point out that my project met the visions set out in the future land use plan in goals and objectives,” Billick said. 'My project delivered on some of the things they said they want. As a developer that's where I start.”

The denials come as market studies and local leaders hammer home the need for a variety of housing types in Cedar Rapids, including moderately priced options for younger professionals. It also comes during an election year, an important factor, some said.

Developers notice these kinds of decisions by the policy board, and it could have a chilling effect on future plans, said Billick, noting developing plans such as his require investment of thousands of dollars and time.

In all but the case of Crestwood Ridge Apartments, the developments had the backing of the City Planning Commission, a body that analyzes zoning and land use decisions and makes recommendations to the City Council.

Denials noted

Jim Halverson, chairman of the planning commission, has noticed the denials all involve infill development - new projects in already developed areas. He said the decisions could create questions in the minds of developers when considering future infill projects.

Halverson said the commission analyzes proposals to see how they align with current codes and standards, considers feedback and makes a recommendation. However, the commission is appointed and not elected, which could create different expectations, he said.

'I think some of it is an element we are all volunteer citizens appointed, not elected,” Halverson said.” 'There will be a certain sensitivity to that difference.”

Adam Stradt, the developer behind La Hacienda, said the City Council winds up examining issues beyond the specific policy matter up for vote, which is derailing projects. For example, some questioned whether his site on Hollywood Boulevard NW was large enough to contain stormwater, which Stradt said shouldn't factor into the rezoning process.

'Ninety-nine percent of the time council focused on things they weren't supposed to,” Stradt said.

Mike Brain, vice president of Brain Engineer, which has provided engineering services in Cedar Rapids for 25 years, has also noticed the denials. He said there's a case of 'not in my backyard syndrome,” happening and the City Council is making decisions with their 'hearts not their heads.”

'I'm sure council gets bombarded day in and day out with people who don't want a development in their area,” Brain said.

Mixed feelings

Members of Cedar Rapids City Council have mixed feelings on the denials. Some consider it an aberration, a series of votes that each have merit in their own right. In each development proposal, neighbors have pushed back with concerns about increased traffic, stormwater runoff issues and claims projects don't fit the context of the neighborhoods.

Still, others say they aren't happy with the trend.

'I have noticed it and I am not happy about it,” said Ralph Russell, a member of the Cedar Rapids City Council, adding each of the projects have gotten an 'unusual” amount of neighborhood resistance. 'I don't know why that is, but I think the council may be more sensitive to that because it is an election year.”

Russell supported all but the Blairsferry project.

Four members of the City Council are running for city offices in November.

Scott Olson, who represents district four, is running for mayor. He agrees the upcoming election could have an impact, but only in the sense officials are listening to constituents.

'I'm sure everyone looks at (Crestwood Ridge) and (Lincoln Highway Lofts), they're both in my district, and I say, 'You have to get buy-in to get my vote with that kind of number (of signatures) on petitions,” Olson said. 'Where is the fine line where it gets to that number of signatures to say, ‘I know better.' ”

Olson voted against the Crestwood Ridge, Lincoln Highway Lofts and La Hacienda projects. He said success of neighborhoods that have pushed back projects, which have gained publicity, may serve as a road map for other neighborhoods to band together when they don't like a development proposal.

If enough neighbors contiguous to the development site resist a project, they can trigger a supermajority requirement that 75 percent of the City Council approve a project. That happened in all four of the rejections.

It's a tough threshold to cross, Olson said, adding he's among those speaking with city staff about how to mitigate problems before projects get denied at the City Council level. He said it may make sense for these development projects to get vetted by the three-member development subcommittee of City Council.

'I know staff is working on the issue,” Olson said. 'Staff spends a ton of time working on these plans. They don't want to see them get to City Council and get denied. They are asking the same sort of questions: Why are these getting rejected?

City staff declined to comment for this story.

Listening to citizens

Cedar Rapids Mayor Ron Corbett is among those who don't put much stock in the denials. The City Council reviews dozens of development proposals over the course of a few months, so the number denied is minimal, he said.

Just Tuesday, for example, the City Council backed a $5.9 million mixed use development in the New Bohemia District and also voted to allow the developers of the Crestwood Ridge Apartments to pitch their revised plans for the project under a rarely used 'successive application,” that means officials think the project has changed enough to warrant reconsideration within one year of being denied.

The 45-unit complex proposed for city land at 1200 Edgewood Road NW features five units set aside for the chronically homeless and the promise of $8 million in federal tax credits.

Corbett said developers with projects that don't make it through should spend more time getting support from the neighborhoods where they want to build.

'These are examples of citizens making better cases than developers,” Corbett said. 'Sometimes things are cut and dry, and they go through without disagreement, but occasionally, citizens come up and list reasons why a project shouldn't go in a place, and we try to listen to citizens.”

'Voters elect us and we are sensitive to what voters tell us we should do and what we shouldn't do. We don't want an arrogant attitude on City Council that the city knows what is best.”

l Comments: (319) 339-3177; brian.morelli@thegazette.com