Steve Emerson proposes redeveloping Cedar Rapids’ former Ambroz building into multifamily housing

CEDAR RAPIDS — Developer Steve Emerson is proposing to repurpose the old Ambroz Recreation Center site and transform it into multifamily housing, possibly leveraging federal disaster recovery funds and potentially answering the city’s long-faltering calls to transform the facility.

Emerson’s plan include demolishing the long-vacant brick building at 2000 Mount Vernon Rd. SE.

In response to the city of Cedar Rapids’ fourth request for proposals to redevelop the building, Emerson is proposing to shift federal Community Development Block Grant-Disaster Recovery funds to this site instead of the initially proposed location on 520 E Ave. NW.

Last year, Emerson was awarded $4.75 million to build 50 multifamily rental units — 26 of them affordable housing — using federal funds awarded by the U.S. Department of Housing and Urban Development to the Iowa Economic Development Authority to aid in recovery from the 2020 derecho.

The E Avenue NW location is by railroad tracks. It’s in a flood plain, Emerson told The Gazette, but would have gained protection from a flood wall that’s part of Cedar Rapids’ permanent $750 million flood control system.

“It’s got some environmental issues,” Emerson said.

With a majority of units being affordable housing, he said, “it felt a little hard to put it there without seeming like you were putting housing in a bad location.”

The Mount Vernon site, he said, is big enough for 50 housing units but not for additional mixed-use or commercial development.

Idea under review

Whether Emerson’s proposal for the Ambroz site advances or he has to go back to the drawing board, any project receiving CDBG funds would be subject to state approval.

Community Development Director Jennifer Pratt said city staffers will be working with a review committee to assess proposals and environmental review for Ambroz in the coming weeks. That panel will make a recommendation to City Council, which has the final say on any project that takes shape.

The approximately 18,700-square-foot building has been closed since 2016 when the city parks and recreation department moved to the new Northwest Recreation Center, 1340 11th St. NW. Before that, it was the Buchanan School from 1903 to 1973.

With the E Avenue NW location, Emerson’s team had committed to keeping the units in proximity to trails, parks and bus routes. He said an initial analysis of the Ambroz site suggests it could offer the same proximity.

“I think it’d be a great fit,” Emerson said. “ … It’s a lot of housing that’s really needed in Cedar Rapids.”

Emerson’s block grant award was part of approximately $8.8 million allocated to Cedar Rapids for multifamily housing construction, which will add 94 multifamily units — 48 of them affordable.

High Development Corp. was awarded funds to build 40 units — 21 of which are affordable — at 8600 Prairie View Lane SW. Charlie Nichols’ JPAC Investments will build four units — three of which are affordable — at 710/712 O Ave. NW, previously a city-owned lot.

The city also received about $2.5 million toward owner-occupied rehabilitation, $3.5 million for a tree canopy replanting program and $400,000 for a generator program for nonprofits, shelters, hospitals or other critical entities that would remain open during a disaster.

Demand high for single-family homes

Demand already exceeds supply for a recently launched Cedar Rapids program using the CDBG funds to allow low- to moderate-income households affected by the 2020 derecho to buy one of 76 new single-family homes.

Since the city of Cedar Rapids opened applications last month for its Redeveloping Ownership Opportunities Together (ROOTs) program, Buck said about 140 households are in the process of applying for a home. Five applications already have been submitted.

This program uses $15 million in CDBG disaster funds to provide disaster-resilient, single-family homes in locations throughout the city.

“It’s all levels of government working together to support community development and disaster recovery,” City Manager Jeff Pomeranz previously said of the ROOTs program. “ … All of us come together and work together to create this opportunity for our residents, for our neighborhoods, for our future growth and equity within our community.”

Overall, Cedar Rapids received $30.2 million of the nearly $57.6 million awarded to the state for derecho recovery.

The funds were awarded primarily to Linn County, which was hardest hit in the derecho’s hurricane-force winds. The unprecedented storm damaged housing stock at a time when local officials already are grappling with a lack of available affordable housing.

Applications for ROOTs homes are open until there are purchase agreements for every home, which will sell for a maximum price of $175,000.

Because city officials were working on a short timeline … Buck said typically developers that already had control of a site were the ones applying for this program. But newer developers like Bass Development Group also were able to take advantage of the opportunity.

To access the application and more information including a checklist of materials needed to apply, visit CityofCR.com/Roots. Derecho-affected households have first dibs on a chance to buy the homes for about three more months. Construction of most homes is slated to start this spring.

Developers building homes for this program include Emerson’s Aspect Investments, Bass Development Group, Wes Waters, Abode Construction and TW Homes Inc.

The program is the second iteration of a program that used federal funds to build 869 homes after the 2008 flood and sell them to income-eligible households.

“The more that we can do this — we still need midrange single-family homes and couple those with dollars for affordable housing … the more we can grow Cedar Rapids,” council member Ashley Vanorny said at the council’s Development Committee meeting.

Comments: (319) 398-8494; marissa.payne@thegazette.com