116 3rd St SE
Cedar Rapids, Iowa 52401
Another development coming to NewBo
Mixed-use project likely at one of district’s few empty parcels
CEDAR RAPIDS — One of the few remaining slices of land in the New Bohemia District has been purchased by a development team led by Chad Pelley, representing another marker of the neighborhood’s redevelopment after the devastation of the 2008 flood.
Pelley, as part of the Sinclair Development Group, bought the land behind Kickstand and most likely will turn it into a mixed-use development that’s heavy on owner-occupied units.
The plan — along with others — is adding to the discussion now underway about providing sufficient parking for residents, businesses and visitors in the rapidly growing district.
Pelley said the Sinclair group has no firm plans for the land along Second Street SE and is looking to schedule a neighborhood meeting at NewBo City Market to receive feedback from district residents.
“I definitely want buy-in from this neighborhood,” Pelley said. “What are we missing?”
The parcels the Sinclair group bought are at 1620, 1624 and 1730 and 1748 Second St. SE. The land was previously owned by Brett McCormick until sold in December for $280,000, according to Cedar Rapids city assessor’s records.
NewBo location
The New Bohemia District surrounding Third Avenue SE in Cedar Rapids is part of The District: Czech Village & New Bohemia, as well as the Czech Village & New Bohemia Self-Supported Municipal Improvement District.
The Oak Hill Jackson Neighborhood Association encompasses the area, but many community members primarily associate properties along the Third Street SE corridor as being in NewBo.
NewBo’s proximity to downtown Cedar Rapids and other core districts, as well as its variety of retail, dining and entertainment offerings accessible by foot, have driven recent residential development, Community Development Director Jennifer Pratt and other city officials have said.
“It is a continuation of what we’ve seen since the reinvestment after the 2008 flood,” Pratt said. “We definitely saw in the market that people were interested in walkable neighborhoods. That has just continued to grow.”
What can be done with the site?
The city’s Future Land Use map shows the area purchased by the Sinclair Group is considered Urban High Intensity, lending the properties to medium- and high-density residential or major commercial, office and service uses. Depending on the location, limited industrial uses also may be compatible.
The city owns a few parcels on the same block that Pelley said the group intends to eventually pursue for redevelopment, along with parcels on the other side of Second Street SE that back up to the flood protection levee.
Those parcels would have to go through the city disposition process, where the city seeks interested developers and selects one proposal.
Pratt said the city likely would target some areas for disposition sooner such as the city-owned lots around Second Street SE. Staff want to ensure there’s ample land for the permanent flood control system, she said, but staff also consider disposition when developers acquire nearby land.
After developing a site plan, Pelley said his development team would hope to pursue disposition of the other nearby properties in 2025. He’d likely seek state tax credits in 2026.
“It's an exciting property,” Pelley said.
It’s important, he said, “to take full advantage of the river, the pedestrian bridge, the views and the gateway to Czech Village” to connect the two historic neighborhoods.
Parking study
One of the infrastructure challenges that comes with this growth is enough parking to accommodate more residents and visitors.
In play is the city’s consideration a development plan for the city-owned Lot 44 public parking space on Second St. SE where Conlon Construction is proposed to build a contemporary-style 150-room hotel and 10 rowhomes.
The city has yet to consider the proposal, which raised concerns about losing that parking, now used during NewBo events.
Bill Micheel, the city’s economic development and development services director, said officials first want to understand the phasing of other projects in the area and how much space will be needed to store construction materials, for instance, before acting on the proposal.
Micheel said the city plans to pursue a parking plan for the city core, including downtown, NewBo, Czech Village and Kingston Village, to document existing on- and off-street parking
The plan will involve collecting data on the usage of existing parking; the duration of stays for individual vehicles; supply and turnover; and the ratio of occupied to vacant parking spaces.
“We are aware of that pressure and concern from business owners, residents and visitors,” Micheel said.
Asked if options such as a public parking ramp or metered parking in the core districts would be on the table, Micheel said the city needs data before making decisions.
“The pay structure is something that could be informed by this study and whether or not there’s additional paid parking in other areas of the city where it does not exist today,” he said.
Multifamily construction fuels recent housing growth
While the district and broader Oak Hill Jackson Neighborhood have seen tremendous residential growth in recent years, much of that has been fueled by the construction of new multifamily rental units.
That’s why Pelley is thinking about building owner-occupied units.
Local and state officials last month celebrated breaking ground on the redevelopment of the former Loftus Lumber site at 900 Third St. SE. The $36 million project will transform a long-vacant block in the heart of NewBo into a five-story mixed-use property that includes 186 market-rate apartments, featuring studio-three bedroom units and two two-story lofts.
The Watts Group’s $20 million NewBo Lofts development recently added two 55-unit buildings to the market. Plus, a development team led by Pelley recently completed construction and is leasing units in the $9.8 million Fulton Lofts project from 1218 to 1310 Third St. SE near the Olympic South Side Theater.
Local developer Darryl High is pursuing a $23.7 million residential and mixed-use facility on city-owned property at 116 16th Ave. SE, across the street from the Kickstand bar. Dubbed the “Vesnice,” which is Czech for village, the plans call for one six-story residential building facing the river with 63 units and one four-story mixed-use building facing Second Street SE with 22 units and 1,443 square feet of commercial space.
There are some owner-occupied units in the neighborhood, including Bottleworks Loft Condominiums on Third Street SE and Row Houses on Second condos on Second Street SE.
What’s fueling NewBo’s growth?
The NewBo District’s arts and cultural scene, entertainment options and mix of restaurants has fueled recent residential growth, offering residents ample amenities and helping developers their new housing will fill up.
Major attractions, including NewBo City Market, a central community gathering hub, and two museums — the African-American Museum of Iowa on the NewBo side and the National Czech & Slovak Museum & Library across the river in Czech Village — also are key draws for residents and tourists.
“There’s an aspect of character that is unique here that you don’t see in other parts of the city,” Assistant Community Development Director Adam Lindenlaub said.
The Cedar Rapids City Council at its noon Tuesday meeting is slated to hold a public hearing to open bids for the $12.32 million LightLine Loop project that city officials anticipate will lure more residents and visitors into Czech Village and NewBo.
Located along the river in Czech Village, it will redevelop a swath of nearly vacant parcels damaged in the flood into a community gathering space. It features new gateway signage, a multiuse roadway for events, pedestrian promenade and a new Roundhouse building. A portion of funding comes from Destination Iowa, a state program created with the state’s share of federal American Rescue Plan Act dollars and allocated by the Iowa Economic Development Authority.
Recent housing growth in the Oak Hill Jackson neighborhood, which encompasses NewBo, also encouraged the city to open a third dog park, the 12th Avenue Dog Park at 405 12th Ave. SE.
“The vision for this area, that foundation of that came from the people — the business owners, the property owners of that area,” Pratt said, referring to the input that guided the Czech Village-NewBo Area Action Plan adopted in 2019. “It’s important for people in the area to have that sense of ownership because that isn’t something that came out of City Hall. This really has been a grassroots effort and all of the investment that’s happened in the area has generated from that.”
Comments: marissa.payne@thegazette.com
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