Cedar Rapids council approves NewBo City Market development plans

The City Council Tuesday night authorized the city manager to sign a development agreement with Cedar Rapids City Market Inc. that will clear the way for the market to renovate city-owned property in New Bohemia into a year-round farmers market.

Sarah Ordover, president of the non-profit market's board of directors, profusely thanked the City Council and city staff members last night for their support over two years in helping get the market to where it is at. She called the market an “incredible step forward” for the New Bohemia district, the city, Eastern Iowa and the state.

Ordover reported that the market board had raised $1.2 million in funds toward its current initial target of $1.5 million, a fundraising target that must be met before the market can begin work at converting a former warehouse on the city-owned site into the market.

The market board is also seeking a state grant to help wit an overall project cost of $4.25 million.

The market, Ordover said, would create entrepreneurial opportunities for numerous small vendors, more than 100 of whom have expressed interest in selling their produce and other products at the market, she said. She said the market would be a “showplace for Iowa food.”

The agreement between the city and market calls for the city to lease property at $1 a year for five years after which the market can purchase the property for $1 if the lease has been a success.

The property is located at 327 11th Ave. SE, 309 11th Ave. SE, 1114 Third St. SE and 1120 Third St. SE, which is the former site of Quality Chef Foods, and it also includes a parcel to be used for parking at 400 12th Ave. SE.

The city has placed a monetary value on the property of $932,000, which would represent that city's local match if the market succeeds in securing a state grant for the project.

Initially, the market will be required to focus its redevelopment work on the existing warehouse until flood-damaged property at the site along Third Street SE is demolished. The city is still negotiating with the Federal Emergency Management Agency over payment for the demolition, Brad Larson, a planner with the city's Community Development Department, told the council last night.

The market agreement calls for the property to revert to the city if it no longer is used for a non-profit city market.

In exchange for the city's property, the market agrees to employ two full-time people, to provide opportunities for local and regional producers to sell their products year-round and to be open a minimum of two days a week once improvements to the site are made.

The agreement gives the City Market a year to raise $1.5 million to renovate the property into a market, though Larson noted that the market is nearing that goal.

The City Council earlier had sought proposals for the city-owned parcels and directed the city manager to pursue a development agreement with the City Market in October 2010. The city's negotiations with FEMA on the property have slowed down the project, Larson said.