Consultant reveals action plan for Cedar Rapids

An Austin-based consulting group unveiled its strategic action plan for economic development in Cedar Rapids on Monday. While it relieved concerns of retail leakage it recommended greater partnerships between regional economic development agencies.

'Economic development cannot be done in isolation,” said Angelos Angelou, the founder of AngelouEconomics.

Cedar Rapids officials paid the company $75,000 to examine the economic climate in Cedar Rapids, which began last October.

AngelouEconomics also addressed concerns regarding retail leakage, which occurs when consumers leave the community to purchase goods that could be bought locally. It found the Cedar Rapids area had a retail surplus of more than $550 million, with the largest surpluses occurring in grocery, general merchandise and department stores. Retail surplus is when the community's trade area capture the local market as well as non-local shoppers.

The largest retail leakage occurred in automobile dealerships.

The same study found industrial and retail space vacancy is below the national average, while office space vacancy is greater than the national average.

The company recommended that the city develop stronger relationships with surrounding economic development agencies, especially Iowa City, saying there was 'ample” opportunity to do so.

'I don't see city limits. I don't see county boundaries. I see a workforce,” Angelou said.

Within Cedar Rapids, the group recommends the city hire additional staffing to specifically address development, as it has only one person dedicated solely to this issue.

Strengths identified by AngelouEconomics included that Cedar Rapids is the grain processing capitol of the U.S., has a high quality of life, and has developed destination areas such as New Bohemia and the Czech Village.

Weaknesses included a lack of a city-centric economic development plans and disconnected regional organizations, along with a declining labor force.