Developer wants to renovate former service stations in Oakhill Jackson neighborhood

Two former service stations could see new life as an ice cream shop and a barbeque joint.

The city-owned buildings, at 624 and 629 12

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Ave. SE, were scheduled to be demolished earlier this summer.

“We kind of saved these from the jaws of death,” said Charles Jones, 27, president of Green Development LLC of Iowa City. “Demolition was scheduled for a Monday and we talked to them on a Friday.”

Where some might regard small buildings with little parking as good candidates for the wrecking ball, Jones sees potential as neighborhood businesses.

The sites are within walking distance of the Oakhill Jackson Brickstones, two  affordable housing apartment complexes under construction that will have about 100 units between them.

Both are also near Metro High School, 1212 Seventh St. SE, and homes in the Oakhill Jackson neighborhood.

Jones noted that the neighborhood has few commercial buildings outside of New Bohemia along Third Street SE.

By renovating and reusing the buildings, which were flooded in 2008, neighbors could have convenient places to eat and the buildings could return to the city's tax rolls, he said.

Richard Luther,  a former development operations manager for the city who is consulting for Green Development, said the businesses could employ up to six people each, with more than $4,000 together in annual property taxes.

Each building is between 700- and 800-square-feet on sites that are under 5,000-square-feet.

Jones said he has potential tenants interested in opening a barbeque restaurant in 624 12

^th

Ave. SE and an ice cream shop at 629 12

^th

Ave. SE.

Estimated cost of renovations could total more than $170,000.

To make the projects financially feasible, Jones will seek historic tax credits that could recoup about half of renovation costs.

Mark Stoffer Hunter, an expert in Cedar Rapids history,  said the buildings were both constructed by Best Oil Refining Co. of Cedar Rapids; one in 1928 and the other in 1932.

The limestone building, at 624 12

^th

Ave. SE, “wasn't a service station for long,” he said, being used at various times as an ice cream parlor, barbeque restaurant and a dry cleaner.

Village Auto Repair Service, 629 12th Ave. SE, occupied the other site for many years.

The City Council will decide if Green Development should take ownership of the buildings and what the cost should be.

Letters from the Iowa Department of Natural Resources show soil and groundwater tests were conducted at the sites. Contaminants were below levels that would be considered hazardous.

Tami Rice of the DNR said there are apparently no underground storage tanks on the sites and no action is required at this time by the DNR.

If contamination was found in the future, she said, cleanup could be the responsibility of the current owner or the owner at the time of contamination.