Cedar Rapids OKs tax incentives for $8.5 million commercial facilities

CEDAR RAPIDS — An entity of Tiffany Earl Williams is pursuing an $8.5 million project to build two new commercial buildings in the rapidly growing southwest quadrant.

The Cedar Rapids City Council awarded financial incentives last week toward the construction of the two buildings along the 9000-10000 block of Sixth Street SW as proposed by Williams Synergy LLC.

Located near The Eastern Iowa Airport and Interstate 380, this area has increasingly attracted massive warehouses and growing manufacturing, logistics and distribution companies thanks to easy access to transportation.

Some other major projects nearby include the now-operational $108.6 million, 479,000-square-foot FedEx Ground distribution center on Commerce Park Drive SW and kitchen appliance company Sub-Zero’s $140.6 million, 614,000 square-foot light manufacturing facility building at 10015 Sixth St. SW.

Williams’ project calls for the construction of two commercial buildings — one 60,000 square-foot warehouse and a 20,000 square-foot office space. It required demolition of dilapidated structures, including asbestos removal, and will redevelop underused land. One of the properties was considered a nuisance property, city Economic Development Coordinator Scott Mather said.

The development is expected to create 10 jobs and retain 10 jobs. At least 10 jobs will pay at or above the state high-quality wage rate, which starts at $26.20 per hour.

Under the terms council approved, the city’s standard incentive provides a 10-year, 50 percent rebate of increased taxes the project generates. Staff estimate the project will generate $3 million in total taxes over 10 years, of which $1 million would be rebated back to the company.

Emerson awarded incentives for ‘Muskwaki’ building

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The council also gave a boost to local developer Steve Emerson’s transformation of the “Muskwaki” Building on the Guaranty Bank block downtown.

The three-story brick building at 329 Second Ave. SE is where the Dragon Restaurant — long Cedar Rapids’ only Chinese restaurant — was located for 55 years. It most recently held the Hazzard County saloon until the business moved across the street in 2018.

Emerson’s $5.66 million mixed-use redevelopment project will offer main-floor commercial space and 13 apartments on the second and third floors — a mix of studio, one- and two-bedroom units.

The exterior will maintain historical features and architecture as required by the State Historic Preservation Office, honoring the building’s history. The spelling of the building’s name has varied over the years, but records show it was referred to for the longest period as the “Muskwaki” building, which became its historical name. It was built in 1897 by Ben Heins and designed by W.A. Fulkerson, who wanted to honor the Meskwaki Native American tribe.

The city will reimburse 100 percent of the increased taxes the project generates up to a net present value of $350,000. The Iowa Economic Development Authority recently awarded $2.165 million in state historic preservation tax credits toward the redevelopment.

Construction is slated to start July 1 and wrap up by July 1, 2025.

“This has been a building that could have been lost a number of times in the last 10, 20 years,” council member Scott Overland said. “ … On the exterior, I think when he’s finished with it we’re going to see the value of that building.”

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