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Cedar Rapids Council OKs incentives for $6.7M Kingston Village apartments, commercial building
The new development is located on Fourth Avenue SW between Second Street SW and Third Street SW
CEDAR RAPIDS — The Cedar Rapids City Council Tuesday approved city tax incentives for a proposed $6.7 million three- to four-story apartment complex in Kingston Village.
When completed, it will fill one of the few vacant spots left in the neighborhood redeveloping since the 2008 flood.
The entity, led by Fred Timko and Gary Rozek, will redevelop the south half plot of a property on Fourth Avenue SW between Second Street SW and Third Street SW and a commercial building, which houses ImOn Communications and Kepros Physical Therapy at 218 Fourth Ave. SW.
“This will be buildings number five and six for my development group in Kingston Village,” Timko said. “With the First and First project underway, there is precious little land left between Fifth Avenue and the interstate.”
The apartment building will have covered parking and walk-up units on the first floor and 20 residential units rented at market rate.
The redevelopment of the commercial building, just next door to the apartment building, will relocate Kepros Physical Therapy so ImOn Communications, which was acquired by Goldman Sachs Asset Management in February, can expand in the first floor of building, Timko said.
The city is providing a temporary reduction on property taxes on 100 percent of the increment taxes generated by the development — up to a net present value of $750,000 for the redevelopment or 20 consecutive payments.
The city gives financial incentives to developers who build properties in areas, including Kingston Village, entered in the Targeted District Reinvestment Economic Development Program.
In 2016, the Council approved tax breaks for redevelopments in the same area, also led by Timko.
As part of the development, Caleb Mason, city economic development manager, said the city will go through the disposition process for a small piece of city-owned land at 202 Fourth Ave. SW.
The city will sell the property, acquired after the 2008 flood, at fair market value and the developer must incorporate flood mitigation measures.
Timko made Kingston Village somewhere that people want to be, council member Marty Hoeger said.
“He had a vision for the west side, and he secretly kind of plucked away and redeveloped and redeveloped …”
Council member Scott Overland said the new development is being put to good use with the redevelopment of underused lots.
“What we have now between that and the First and First redevelopment, and also all of the public infrastructure, is a tremendous combination of downtown living, of which I don’t think there any vacancies these days, as well as commercial developments catering to those living spaces,” Overland said.
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