Wedge leases signed, Iowa City officials seek long-term tenant

IOWA CITY - Two temporary leases have been signed for the city-owned space that formerly housed the Wedge Downtown.

Iowa City will bring in about $2,200 from the two short-term leases for the 4,580-square-foot space, which became vacant earlier this month when the Wedge Downtown terminated its lease with the city.

Jeff Davidson, Iowa City economic development administrator, said the two leases will help the city reduce lost revenue after the pizzeria moved out, but added that the city still is seeking a more long-term tenant.

'We like the idea, especially over the holidays, of having the space occupied, but we're just not ready to make a decision on a permanent lease yet,” Davidson said. 'There has been significant interest in the space there.”

To find that perfect tenant, Davidson said the city will take advantage of a report being conducted by Philadelphia-based consulting firm Downtown Works on downtown Iowa City businesses, use of space and business configuration.

'We're hoping there will be some guidance for us in that report,” Davidson said.

Nancy Bird, executive director with the Iowa City Downtown District, said the district hired Downtown Works earlier this year, with the city chipping in $10,000 of the $45,000 contract.

The final report, which is expected to be completed in mid-December, will include a merchandise mix plan and retail strategy for the downtown area, Bird said.

Ultimately, the report will provide a look at the overall downtown market, which retail markets are missing and where certain types of businesses would work best, she said.

'There's market that we're not capturing downtown that we could capture,” Bird said. 'It's a long-term strategy. It will take us years to get there but you have to start somewhere and I think we're starting in a really positive place already.”

While restaurants have been the majority of interested tenants for the former Wedge space, Davidson said city staff are leaning more toward seeking a retailer to move into the space.

'We want to give certainly a fair shake to retail use, but if it's certainly unrealizable we will have to go to a restaurant or food-based use, and there's plenty of interest out there,” he said.

As for the space's temporary tenants, the first short-term lease began Thursday between the city and a collaboration of downtown retail stores, including Catherine's, Revival, Textiles, Velvet Coat, Dulcinea, Nori, Sicily Boutique and Jami's Jewelry.

The multiple tenants leased the space until 7 p.m. Saturday for $614.51, according to the lease agreement.

'We all banded together to have a warehouse event,” said Catherine Champion, of Catherine's. 'We just wanted to create something exciting.”

Each tenant has selected a local agency - United Way of Johnson and Washington Counties, Shelter House and Domestic Violence Intervention Program, to name a few - to receive a donation from revenue generated in the sale, Champion said.

The second lease between the city and non-profit Ten Thousand Villages will begin Monday and continue through Dec. 31.

Ten Thousand Villages will pay the city $1,700 for rent, with all revenue from the six-week sale, which begins Nov. 21, going toward the $100,000 needed to open a permanent store in Iowa City.

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