Old Cedar Rapids block ‘under the gun’ with casino, real estate shake-up

CEDAR RAPIDS - A chain reaction of real estate transactions and a proposed casino on a downtown Cedar Rapids block intertwined with the early evolution of the city, particularly ties to the railroad, has historians concerned about the future.

Seven buildings - home to businesses including Albert Auto Service, Sub City, Downtown Tire and the Skogman real estate company, among others - stand on the rectangle between Fourth and Fifth streets SE and First and Second avenues SE. The 1923-built Bever Building, 1890-built First Avenue Building and 1903-built Palmer Building are the gems, said Mark Stoffer Hunter, historian with The History Center in Cedar Rapids.

He points out the five-story First Avenue Building, located at 411 First Ave. SE and occupied by the Skogman real estate firm, was the original headquarters of the Burlington, Cedar Rapids and Northern Railway, and a symbol of the city's growth.

The vacant, two-story Bever Building with two distinct - although not original - lion statues out front is the last downtown building bearing the name of a prominent banking and real estate family that donated the land for Bever Park.

'I'm very passionate about this block because I know it is under the gun right now,” Stoffer Hunter said. 'The surprise announcement of the boutique casino and the property changing hands, that can be a sign. That sends up red flags for historic preservationists like myself.”

Real Estate Transactions

On Sept. 15, 2016, local developers Steve Emerson and Hunter Parks and Wild Rose Entertainment announced plans for a $40 million 'boutique” casino that would be built on the southwest part of the block. Early design renderings depicted the casino - which is far from certain given a 2014 gambling license rejection for a different casino proposed for Cedar Rapids - in place of the First Avenue Building and a park setting in place of the Bever Building.

Behind the scenes, a sequence of property transactions had just occurred consolidating ownership of the block to two owners.

' On Aug. 26, the Skogman Partnership purchased the buildings where Sub City and Albert Auto are located for $550,000.

' On Aug. 30, Emerson acquired the Skogman building and two connected parking lots from the Skogman Partnership for $1.5 million. The purchases came under Emerson's Palmer Building LC.

' On Sept. 12, the Skogman Partnership purchased the Bever Building for $564,500.

' Previously, Palmer Building LC acquired the Downtown Tire property for $875,000 in December 2012, the Balloons Etc. building for $185,000 in December 2010, and the Palmer Building, where ITC Midwest operates, for $890,000 in April 2006.

The Skogman group and Emerson now own all properties on the block. The Skogmans remain tenants in the First Avenue Building they once owned while owning the two properties to the north.

Future Plans

Drew Skogman, vice president of the Skogman firm, said by email any speculation about the land is conjecture at this point, but noted the Bever Building has 'some significant challenges with capital expenditure requirements and it is not ADA compliant,” which will factor into the final decision.

'We are exploring all options and one of those is to build new. We have not hired an architect or received any bids to build new,” Skogman said.

Beth DeBoom, past president of Save CR Heritage, said she's worried about the future of the Bever Building.

'We believe that building can be restored and if it's a matter of it being too costly for the developer there's tax incentives and other economic incentives to help keep the building standing,” she said.

Meanwhile, the First Avenue Building appears destined for renovation, which pleases Stoffer Hunter.

Speaking to The Gazette this week, Emerson said design plans now call for restoring the First Avenue Building to its original look, rather than tearing it down. He shared new casino renderings showing the brick First Avenue Building with larger windows and a connecting walkway to the casino.

'It is a pretty significant building historically,” Emerson said. 'My intent is to peel off the metal panels over the windows and restore the original masonry of the building.”

Historic Importance

After the First Avenue, Bever and Palmer Buildings, the Canfield Building, which houses Balloons Etc. & The Costume Emporium, is the next most important, followed by the buildings that house Sub City and Albert Auto, Stoffer Hunter said. The Downtown Tire building doesn't have historic value, he added.

'There's different levels of historic importance based on what's happened in them,” Stoffer Hunter said. 'That's what makes them more or less significant versus just old. The Skogman building, in particular, has the highest level of stories because of its connection with railroad history.”

The Palmer Building was named for Austin N. Palmer and housed the Palmer School of Penmanship and Bookkeeping, which taught a method of handwriting that was taught at schools until the 1960s. The building also housed the Cedar Rapids Business College, which closed in 1975.

The two story Canfield Building, built in 1910, is one of the last original retail buildings where business owners ran a shop on the ground level and lived in or rented the second floor.

The downtown area has been designated as historic on the National Register of Historic Places. Within that, some buildings - including the Bever and First Avenue buildings - have been deemed historically significant, which makes them eligible for state and federal tax credits, Stoffer Hunter said.

It doesn't shield them from demolition because they aren't recognized as historic locally, he added.

The block has been virtually untouched from redevelopment for at least 60 years, which is why the recent flurry has caught some attention. Stoffer Hunter hopes to raise questions now to ensure thoughtful decision making going forward, he said.

'No other downtown block can claim that,” Stoffer Hunter said.

Emerson said he plans to honor leases for the First Avenue Building. The Palmer Building will stay intact, while the Canfield Building could be impacted if ITC expands, and the Downtown Tire location would be demolished for parking for the eventual casino and repurposed First Avenue Building, he said.

Jennifer Pratt, development director for Cedar Rapids, said no paperwork has been filed for any new site plans on the block.

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