Government Notes: Under development agreement, Cedar Rapids would rebate $529 million to data center

The Cedar Rapids City Council will hold a public hearing Tuesday on a proposed development agreement for construction of a new data center campus along 76th Avenue SW.

The development agreement, with QTS Cedar Rapids LLC, is for construction of a $750 million data center that would be built in two phases on approximately 560 acres within the Big Cedar Industrial Center.

According to the proposed agreement, the city “conservatively estimates that $1 billion in total property taxes could be generated,” and an estimated $529 million would be rebated back to the company. That money would be rebated to the company by the city over 20 annual payments.

The agreement requires construction of the data center campus with a minimum of two phases, with the initial phase to start within three years of the development agreement starting, and be completed in six years. Construction of phase two is to start construction within three years of completion of initial phase and be complete in six years.

Any additional phases are to be completed within 25 years of the effective date of the development agreement.

The developer is required to create a minimum of 15 jobs per phase, or 30 jobs total. All are classified as "at or above the high-quality jobs threshold."

The city would agree to make various improvements, including extending city utilities to the property and making off-site improvements to accommodate area traffic flow.

According to the agreement, the company also would make payments into a Community Betterment Fund. Those payments would be $300,000 annually for the initial phase and $300,000 annually for each additional phase, not to exceed $18 million.

The city council meeting will begin at 4 p.m. at Cedar Rapids City Hall, 101 First St. SE. Following the public hearing, the city council will vote on a resolution authorizing the agreement.

Cedar Rapids schools to host Pathways update meetings

The Cedar Rapids Community School District is hosting three community informational meetings this week to share updated plans for the district’s new Freshman Academy and College and Career Pathways program.

The new program was intended to begin this fall with Freshman Academies at Kennedy, Jefferson and Washington high schools, designed to connect students to smaller learning environments where they can explore their career interests. In fall 2026, the program would grow by launching College & Career Pathways at four high schools, including Metro, to capture the upper grades.

When that plan was announced late last year, it was met with a petition from parents asking the school district to slow down and answer more questions. The district formed a Parent Advisory Team to gather input on the program.

Last week, the district announced a new timeline that would make the Freshman Academies an elective in the 2025-26 academic year, and not required until the 2026-27 school year.

The upper academies then would be delayed until the 2027-28 academic year, at Jefferson, Washington, Kennedy and Metro.

The meetings this week will provide families with information about the new timeline. They will be held Thursday, Jan. 30, from 5:30-7 p.m. at the following locations:

Students, staff, parents and the community are invited to the meetings, which will be led by program leaders and building principals. The content shared will be the same at each location.

Hiawatha to appoint new city council member

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The Hiawatha City Council is accepting letters of interest from residents who are interested in being appointed to fill a vacancy on the council.

Former council member Aime Wichtendahl, who was first elected to the Hiawatha City Council in 2015 and won her third term in office in 2023, was elected to the Iowa House last November. As a result, she resigned from the council earlier this month, leaving a vacancy on the board.

At a meeting Jan. 15, the Hiawatha council discussed whether to fill the vacancy by appointment or a special election. Ultimately, the council decided appointment because the seat will have to be on the General Election ballot this November. The appointee will serve until the election, and the person elected in November will fill out the remainder of Wichtendahl’s term, which expires in 2027.

The City of Hiawatha announced it will appoint Wichtendahl’s replacement on Feb. 19. Letters of interest from residents who would like to be appointed to the seat are due by 4 p.m. on Feb. 13 at the City Clerk’s Office, 101 Emmons St. Letters may be submitted electronically by emailing kgraber@hiawatha-iowa.com.

Marion finds second life for thousands of recycling bins

When the City of Marion transitioned to automated curbside trash and recycling last fall, it prioritized finding a second life for the bins that used to hold residents’ recycling.

More than 32,000 standardized carts compatible with the five new trucks’ mechanical arms were distributed across the city. But what could be done with the old bins?

The city reports that it worked with Iowa Waste Exchange Region 4 Resource Specialist Josh Ventling to suggest options for the 10,000-15,000 recycling bins residents could no longer use. IWE came up with options for residents to repurpose the bins. Those ideas included storage for yard tools and firewood, building composters and rainwater collection bins.

But not everyone wanted to repurpose their bin. Nearly 30,000 pounds of plastic bins was remaining, and went to two main recycling partners.

The majority of the bins went to plastics recycler Cedar Poly’s Tipton facility where they are turned into pellets that are then used to make composite decking or field drainage tiles.

Eighty bins went to Chain Reaction Bike Hub, which used them for bike parts and other uses. The Cedar Rapids nonprofit reports that the donation of bins saved the organization more than $2,000, allowing it to spend its funds on community programming like Bikes for Kids or Earn-A-Bike.

Iowa City awarded $500k from DOT to improve pedestrian, bicycle access

Iowa City has been awarded $540,000 through the state’s Transportation Alternatives Set-aside Program to add additional pedestrian, bicycle access along Highway 6/Highway 1 from Gilbert Street to Orchard Street.

The city plans to time construction in conjunction with the DOT’s reconstruction of the Highway 6 bridge across the Iowa River, which will take place in 2028.

The two projects will complete the Highway 1/Highway 6 trail system in the area and provide access to the new bridge.

Currently, there are no sidewalks or trails at the Riverside Drive and Highway 1/Highway 6 intersection.

The Transportation set-aside program awarded $4 million to eight projects across the state, including Iowa City’s.

Iowa City North Gilbert Street $2 million reconstruction

Iowa City’s North Gilbert Street is getting a $2 million renovation. The entirety of the street, between Kimball Road and Brown Street, is being entirely reconstructed due to the poor condition of the existing pavement, according to the city.

The city is now accepting bids for the project with the intention of awarding a contract by the middle of February.

Construction is expected to start sometime in the spring and end later this fall.

Burlington Street Bridge reconstruction community survey

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Iowa City is hosting an input and feedback session and asking residents to fill out a community survey about the city’s plan to replace the Burlington Street Bridge.

The first steps are underway in the yearslong process to replace the bridges, which are crossed by nearly 19,000 vehicles a day and connect the west side of the city to downtown and the University of Iowa.

The project is estimated to cost $30 million, and construction likely would begin in 2028 or 2029. It is unclear how long work may last, and funding sources for the $30 million project have yet to be identified, though city officials have said it likely will be a mix of local, state and federal funds.

The bridges were identified in a 2021 report as being in “poor” condition and “structurally deficient.” An inspection revealed concrete cracks and spalling, and exposed steel reinforcement.

Despite those deficiencies, Iowa City Senior Engineer Justin Hartland previously told The Gazette that the bridges still are serviceable, meaning they can be used by daily traffic without pause.

The city hired a consultant, Cedar Rapids-based HDR, for $1.18 million. The firm will study the bridges and offer a preliminary design for their replacement. A preferred design is expected to be finalized sometime in 2026.

Government Notes is published Mondays and contains updates from area governmental bodies. The Gazette’s Megan Woolard and Sara Konrad Baranowski contributed.