Knutson Building gets another chance to live on

CEDAR RAPIDS - The rundown Knutson Building will live on - at least for another four months - while developers pitch new options for the 1887 building.

City Council members faced a decision much like this a year ago about the former condensed milk factory, now owned by the city, on the west bank of the Cedar River: demolish it or give developers a chance to save it.

'I always believe the third time's a charm,” council member Ann Poe said Tuesday. 'I could just not sleep at night without giving it one last shot.”

This time rather than require full restoration, which already led to two rounds of failed bids, developers have more flexibility. The builders can propose a partial restoration that incorporates as little as some of the facade into the new project.

City staff said the broader scope could make the Knutson project more financially feasible, allow more creative plans and draw more interest. Plus, the city is sweetening the pot by including two adjacent plots of land.

The City Council plans to vote on proposals in July. There's no guarantee a bid will be accepted.

The Knutson still could be demolished if the proposals aren't adequate or seek too much public financing. Demolition was estimated at $400,000 but could increase since asbestos was found.

Several City Council members expressed skepticism more time will save the building, but given support from neighborhood and historic preservation advocates they voted to try again.

'I have to think we are almost wasting our time to do this again, but I would certainly support the resolution to give it a whirl,” council member Ralph Russell said.

Council member Scott Olson warned developers he would not support a proposal that relies on too many public incentives.

'Unless we see some private financial support to match the city money, I'm going to vote no,” Olson said. 'I think for the public to understand what we do this needs to be financially feasible and have private support.”

The Historic Preservation Commission voted in February to recommend saving the building in full. B.J. Hobart, who is on the commission, is one of the only developers who have been interested in the Knutson. She wants to fully restore the building with condos and a concession area for the adjacent McGrath Amphitheatre.

Hobart had asked the city to chip in $500,000 while her company, Hobart Historic Restoration, would invest $3 to $3.5 million. She said she is disappointed with the decision to allow a broader scope because she fears the deck will be stacked against saving the building in full. It is one of the few remaining from the era and the oldest commercial building on the west side of the river.

'The staff recommendation gives an unfair advantage to those that just want the property and not truly want to restore the building,” said Bob Grafton, a commission member.

Fred Timko, a developer speaking on behalf of the Kingston Square Association, urged the city to accept Hobart's offer, calling it 'fair,” but was open to another developer saving the building in full. The association is a group of stakeholders working on the redevelopment of Kingston Village, which was ravaged by the 2008 flood.

However, Timko was critical of restarting the bid process from scratch because it could be another year before any work occurs.