Preliminary plans for former Transamerica site’s redevelopment get OK from Cedar Rapids panel

CEDAR RAPIDS — A preliminary plat that will guide redevelopment of the former Transamerica site in northeast Cedar Rapids got the green light Thursday from the City Planning Commission, though many neighbors still want more specific details about what will be built at the site.

Ultimately, the commission in a 7-2 vote approved it, but wanted city leaders deliberating on the project in the future to respect neighbors’ desires to reduce tree loss and to increase setbacks and buffering on the western edge. They hoped that would help the mixed-use development taking shape on the 51-acre site on Edgewood Road and 42nd Street NE better transition with the neighborhood.

Preliminary plats don’t look at permitted land uses, setback requirements or other design standards. It will take months — or in some cases years — for the redevelopment to take shape while commercial tenants are lined up and residential development plans are drafted.

The Cedar Rapids City Council does not review preliminary plats, so the commission was the approval entity. Should developers on any parcel within the plat seek city financial incentives, a development agreement outlining more project details would come to the council for consideration at a later time.

“Unfortunately the vision’s really cloudy now because nobody’s really stepped up to the plate to say they want to build here yet,” said Loren Hoffman, senior project planner with Hiawatha-based Hall and Hall Engineers. For now, the plat parcels out the properties to the anticipated proper size for the uses they’re likely to attract.

EOP Development LLC in August 2022 purchased the site for $7.02 million, the entity’s principal Kerry Panozzo previously said. He is the Davenport-based franchisee of HomeSmart Residential and Commercial Realty.

The site is zoned S-MR — Suburban Mixed Use Regional Center — which already allows for a variety of uses, including multifamily, retail and office uses. It accommodates larger-scale buildings and a greater intensity and density of uses than in neighborhood or community commercial mixed-use districts.

This development is planned to be about 60 percent commercial on the eastern portion and 40 percent residential on the western side, Hoffman said. Commercial uses are being determined, but permitted uses include educational, health care and commercial uses including child/adult care, retail, restaurants, hotel, gas station, vehicle sales and maintenance.

Single-family residential is not allowed, but for multifamily residential, city code requires eight to 40 units per acre within the S-MR zone district. There are no firm plans yet for the number of units that could be built.

The three existing buildings are proposed to be incorporated into the subdivision. The parking lots adjacent to those buildings are planned to stay, but the lots farther away are likely to be removed.

Hoffman pointed to the commercial lots along the Westdale area as being similar in size to what’s likely to be built at this site, and would attract a chain restaurant like Panda Express or Chick-fil-A.

Construction on the public street improvements serving the commercial sites is slated to start late this summer. Work on individual commercial sites would begin fall 2024 on one or two lots at the earliest, but likely not until spring 2025. There is no timeline set for the multifamily portion.

“The existing site is an eyesore and begging for rejuvenation,” Hoffman said.

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Some look to ‘narrow’ redevelopment possibilities

Chair Jim Halvorson said, “They’ve effectively developed a plat that’s consistent with ... the possibility of uses” in the S-MR zone district.

Commissioner Fred Timko, a local developer, said the panel would “overstep our authority” by considering zoning conditions as some commissioners pressed Hoffman on setbacks and specific uses.

Timko said passing this preliminary plat instead of sending it back to the drawing board eliminates the possibility of a large retailer the size of Costco, but leaves room for more negotiation later as to what specifically goes there.

Commissioner Bo Brock, who opposed the plat, still felt this was “a giant zone” that could become anything.

“The point of a plat is to narrow the cone of possibilities,” Brock said. “… I don’t think I can say that.”

Zoning Administrator Seth Gunnerson said the platting process doesn’t narrow the possibilities a lot, which is where “frustration” comes among neighbors, but input will influence future decisions from staff and council as the developer is likely to seek financial incentives.

‘Something’s going to happen there’

With the council chambers at City Hall entirely packed, the panel heard public comment and deliberated the project for the better part of three hours, taking note of neighbors’ concerns about the removal of mature trees on site, traffic congestion, stormwater management and screening.

Some speakers expressed a desire for the development to align with the neighborhood’s character but didn’t necessarily oppose the redevelopment.

Others outright asked the commission to vote against the plat like Andy Zobro. He said while 42nd Street NE needs repairs, the city doesn’t need to add new streets within this development.

Zobro said Transamerica’s parklike setting with ponds and trees was “very pleasant, and again, not as crammed full of things as what may go in there after subdividing to very profitable businesses.”

Dave Watson, who lives nearby and has organized a Facebook group pertaining to the site, said neighbors understand that this property will be developed, but asked the panel to table the matter and consider the site’s purpose as residents look to enjoy their investments and homes.

“There is no clear direction with this project,” Watson said.

A smaller number of speakers favored the plat and were eager to see the property — which some called an “eyesore” — transformed into something that’ll generate sales and property tax revenue.

Jim Beardsworth, who lives nearby, said he supported the plat because “I think something’s going to happen there.” He said he’d rather see a multiuse development than a big box store.

He said he understands concerns about trees and traffic while neighbors have gotten used to not having much, but no traffic would be “bad for the community” in the long run. He advocated for more setbacks on the west side facing the neighborhood.

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