Coralville ready to pick 'Old Town' concept

Coralville is zeroing in on a developer for a project it hopes will revitalize an old section of town.

The City Council July 10 is scheduled to vote on a resolution to enter into negotiations with Watts Development Team and Fusion Architects Inc. for that team's proposal to put housing and public features in what is called Old Town.

The area encompasses 20 acres south of Fifth Street between First Avenue and Biscuit Creek. It was under several feet of water in the 2008 flood, and most of the houses, apartments and city buildings that were there have been demolished.

The city says flood-mitigation projects will protect the area from future flooding one foot above the record level in 2008.

Watts/Fusion has proposed a $40 million development that includes a plaza surrounded by three mid-rise buildings with 123 condominiums for sale or lease. The plaza could include an amphitheater, play area, farmers market, ice rink and other features, depending on how the plan unfolds and what the city would be willing to spend.

The city would pay for those public areas, and the costs are undetermined. City Administrator Kelly Hayworth said the City Council would need to decide what aspects it supports.

Elsewhere on the site would be seven turn-of-the-century-style row houses with about 40 town houses. In the future, a "game-day" condo building aimed at fans in town for Iowa football games could be constructed.

The city also received a proposal from Houser Enterprises/Baxter Construction. It called for a campus-town approach with two large buildings with 180 for-rent residential units surrounding a community plaza.

Houser also asked for a 10-year tax increment financing agreement, a three-year tax abatement and a donation of the land.

Council members took issue with the TIF request and also said they didn't believe the dense, student-oriented approach from Houser was the right fit for an area intended to be a gateway into the community.

Council members Mitch Gross and John Lundell said the community input they've received has been strongly in favor of the Watts' plan.

Gross said it had more of an “old town” feel with architecture that may be in a Georgetown style.

Lundell said the possible public features, like an amphitheater or farmers market, would attract residents who don't live in the neighborhood.

“It just felt like it would be a little bit more where my wife and I would drive down and take advantage of that development,” he said.

Gary Watts said he didn't want to say too much about the project until after the City Council votes other than if his team is chosen, they'll be excited to work with Coralville.

Hayworth said if Tuesday's resolution is approved, the next step would be negotiating a formal development agreement, which would take about a month.

Because of ongoing flood projects, construction probably wouldn't start until next spring.

Watts has said the entire project as planned now would take about five years.