116 3rd St SE
Cedar Rapids, Iowa 52401
Cedar Rapids Council OKs incentives for 3 multifamily housing projects
The three separate projects include a mix of different housing types across the city
Feb. 10, 2026 4:16 pm
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CEDAR RAPIDS — The Cedar Rapids City Council has formally authorized development agreements for three separate multifamily housing projects.
The council authorized execution of the three agreements at its regular meeting Tuesday and added the projects to the surrounding urban renewal area. All three received unanimous approval from present council members with members Ann Poe and Scott Olson being absent.
The first to receive approval was a $3.25 million development at the intersection of Ellis Boulevard and Eighth Street SW from Ellis Revitalization Group, an entity of local housing developer Eric Gutschmidt.
Per council documents, the project will result in the construction of 13 residential units with a mix of two- and three-bedroom units. The development will be a mix of triplexes, duplexes and accessory dwelling units with construction expected to begin in September of 2026.
The council on Tuesday approved a 10-year, 100-percent rebate of the increased taxes generated by the project. Based on the investment and estimated post-development value, the project is expected to generate $450,000 in taxes over a 10-year period, of which an estimated $375,000 would be rebated.
The second project is planned for the 1300 block of Ellis Boulevard NW between L and M avenues. The $1.5 million project is spearheaded by Mods Enterprise, an entity of developer Mod Williams, and calls for the construction of seven townhome units.
All seven units would have three bedrooms with the intent of making three units available for sale and four available as rentals. Construction should begin this spring and conclude in May of 2027.
The city has approved an 11-year, 100 percent rebate of the increased taxes generated by the project. That will lead to the rebate of $250,000 out of the $300,000 in taxes expected to be generated over that period. Such rebates are typically approved for 10 years, although an extra year was added in this instance since the project also calls for the pavement of a nearby alley.
The final project comes from developer Kevin Nanke of KN Properties. Nanke intends to pursue a $4 million rehabilitation project of the former Blackstock historic building at 611 Second Ave. SE. Construction will begin this spring with completion expected in late 2028.
The plan is to turn the first floor of the building into a retail or restaurant space while the upper level will be converted into 13 market-rate apartments. Already, the project has received $267,000 in state-issued workforce housing tax credits.
The council this week further approved a 10-year, 100-percent rebate of the increased taxes generated by the project with city officials estimating that $480,000 in taxes will be generated over that period — $275,000 of which will be rebated back to the company.
Comments: grace.nieland@thegazette.com
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