Saving Cedar Rapids’ historic Knutson building hits snag

CEDAR RAPIDS - Salvaging a historically significant yet severely dilapidated building once headed for demolition has hit a snag as lead paint, unsafe conditions and asbestos scared off two contractors, and unforeseen repairs means higher costs.

The city had decided to stabilize the 1887-built Knutson Building across the Cedar River from downtown in anticipation of renovations. But the project has been delayed with the finding of health hazards and difficulty finding a contractor to do the work.

'This is a bump; no doubt this is a hiccup,” said Mark Stoffer Hunter, a historian and member of the Historic Preservation Commission, which has been working on the three-story building's future. 'But, interest in saving the building has not waned.”

Following an environmental study, Cedar Rapids authorized up to $167,500 for emergency repairs to stabilize the former condensed milk factory at 525 Valor Way SW. Most recently it was a scrap yard, but now sits vacant after the city acquired it after the 2008 floods.

The stabilization and $16,200 annual upkeep charges would preserve the rundown space until renovations could take place.

The city used emergency measures to award the work to Cedar Rapids-based Ryan Companies without a bid process in November. However, Ryan Companies backed away and cast doubt on the project after touring the building.

In a Dec. 2 report to the city, Ryan Companies said the presence of asbestos, mold and lead paint would make the building unsafe for its workers. And estimates from the earlier environmental report, which was conducted by RDG, were not enough to cover the costs.

'While technically possible, the additional costs and time required to maintain safety begin to outweigh the long-term benefits based on the uncertain time frame of any future, permanent renovations,” according to the Ryan report.

Cedar Rapids asked for a cost estimate for asbestos remediation from ECCO Midwest. ECCO estimated the cost at $370,000, but passed because the building's structural issues would make an unsafe work environment, according to the city.

Jennifer Pratt, Cedar Rapids community development director, in a memo to other city officials, noted RDG hadn't considered the cost of removing asbestos, which is often found in historic buildings. The city would not be responsible for the $18,000 price tag of the earlier engineering study, she said.

Pratt reported the city is seeking bids from four national firms that can do both stabilization and environmental work.

Members of the Historic Preservation Commission, which recommended saving the building, remain optimistic it can be saved. It's one of the few remaining buildings from that era, they have said.

Cost estimates should be available from national firms by Monday. Given the higher estimate, City Council would have to reapprove the plan, which may be presented in February or March, Pratt said in the memo.

Scenarios include demolition at a cost of $400,000 and building new for $1.75 million, or renovating at a cost of $2.175 to $4.8 million.

The city had planned to lead the renovation, but has drawn interest from private developers. A fixed up Knutson Building could be paired with the nearby McGrath Amphitheatre.

According to draft minutes from a January commission meeting, members have discussed alternatives, such as preserving exterior walls and windows - the facade - and gutting and rebuilding inside, which is a strategy used with historic buildings in other communities.