Cedar Rapids pushes ahead on four big projects

CEDAR RAPIDS - Four post-flood, public-sector construction projects will do their part to change the face of the city when completed this summer: the hotel and convention complex project, the new downtown library, the new central fire station and the new riverfront amphitheater.

This week, though, City Hall is pushing ahead on four private-sector projects that similarly should have an impact on the city.

Those four are the $90 million redevelopment of the long-struggling Westdale Mall; the proposed construction of a $100 million casino; a $20 million, multistory office building on the site of the former First Street Parkade; and a new, $4.5 million, three-story office building in New Bohemia at the site of the former Iowa Steel plant.

“We've seen a flurry of private-sector investment in Cedar Rapids in the last 18 months,” Mayor Ron Corbett said on Monday. “And I can tell you, just looking ahead in the pipeline, this type of activity is going to continue throughout the balance of the year for sure and most likely well into 2014. ... These four projects alone are $215 in investment. It's huge.”

Corbett said public-sector investment in flood-recovery construction projects has convinced investors to follow with their own projects.

“We're seeing exactly what we thought we would see: Public sector investment that is leveraging private-sector investment,” he said.

He noted that a ribbon-cutting is slated for Wednesday at Intermec's new facility, another example of post-flood, private-sector investment in the downtown.

Council plans

On Tuesday, the council is slated to approve a development agreement with Frew Development Group, in which the developer agrees to invest at least $90 million over 10 years to transform the long-struggling Westdale Mall with a plan to demolish much of it and replace it with a new retail, office and residential center.

In exchange, the City Council will return 100 percent of the property-tax revenue - a tax incentive called tax increment financing - for at least 12 years that the developer pays on the increased value that comes to the property from the new investment. The property-tax revenue that is returned - arguably revenue that wouldn't exist but for the development - could reach $20 million, city officials estimate.

Similarly Tuesday, the council is slated to approve a development agreement with Geonetric/Agile Ventures, in which the company agrees to invest $4.5 million to build a three-story office building on a city-owned brownfield property that once was home to the Iowa Steel plant in New Bohemia.

In exchange for the investment, the city will return 100 percent of the property-tax revenue to the company from the new investment for 10 years. Geonetric, a health care software and services company, now operates out of leased space in a northeast Cedar Rapids office park. The development agreement calls for the company to pay $50,000 for the former Iowa Steel property.

Other projects

The two other major projects, the casino and the CRST Inc. headquarters projects, are at an earlier stage in the City Hall development process.

For both projects, the City Council on Tuesday is slated to seek competitive proposals for the purchase of city-owned property.

In one instance, a local group of investors, led by Steve Gray and Drew Skogman, has asked to buy 7.5 acres of city-owned land across the Cedar River from downtown on which they want to build a $100 million casino. In the second, the real estate entity of CRST's John Smith has asked to buy the site of the former First Street Parkade in the 200 block of First Street SE. Smith wants to build a $20 million office building, part of which will house CRST Inc.'s headquarters, Smith has said.

The proposed deadline for proposals on the property sought by the casino investors and by Smith is June 17.

City Council member Don Karr on Monday said bringing the Westdale area back to life, adding a new office building to the downtown skyline and one in New Bohemia and building a casino will all increase the city's tax base in the long run and add jobs to the economy.

“It's all jobs, jobs, jobs,” Karr said.

Karr agreed with Corbett, saying public dollars that have gone into the city's flood recovery have helped attract private investment.

“Where do you think we'd be now if we hadn't done the things we've done?” Karr asked.