Iowa City Council wants more retail, office space downtown

IOWA CITY – The City Council Monday night started to lay the ground work for plans that could help bring major changes to Iowa City's popular downtown.

What council members and city staff envision is an area with more mixed-use buildings with retail stores, offices and owner-occupied housing, and fewer bars and student housing.

Prompting the discussion are factors like last year's implementation of a law that prohibits people younger than 21 from being in bars at night and a plan to redevelop the area south of downtown, known as Riverfront Crossings, into a complementing district. Also, there is a proposal to establish a special tax district downtown to fund a manager to market the area.

“I think we're at one of the most exciting junctures in the downtown's history in 30 years,” Mayor Matt Hayek said.

The city plans to create a planning document to outline the vision for downtown. On Monday, city staff asked council members to consider several areas of concern.

The buzzword among city and downtown leaders has been “balance.” It's not that they're opposed to bars and student housing, they say, but they want a better balance of uses, especially in terms of office and retail space.

In recent years, downtown has seen fewer retail stores and offices and more establishments with liquor licenses and apartment buildings aimed at college students. In the past several months, however, at least four large bars have closed, and there's been interest in redeveloping those properties, said Jeff Davidson, the city's planning and community development director.

The council talked about the desire for more mixed-use buildings, with a focus on getting more retail and high-end office space. The city could change its zoning code to require developers include such uses in their downtown projects, Davidson said.

He also said the city likely will have to provide incentives to get those types of projects going. A current example is the proposal from developer Marc Moen to convert the former Vito's bar into retail and office space. The council is expected to vote Tuesday on whether to give Moen a $250,000 grant for the project.

Another Moen development downtown, the 14-story Plaza Towers, has been touted by the city as a model for the future. Davidson said the city may want to limit the number of high-rise buildings to keep them special and for aesthetic reasons. Downtown building heights already are restricted because of flight paths at the Iowa City Municipal Airport.

Council members also said they'd like the city to encourage more owner-occupied housing at a range of prices. They said that should not be seen as a suggestion that students are not welcome.

“I wouldn't be here if the students weren't here,” said council member Connie Champion, a downtown clothing store owner.

The city also will reexamine its parking requirements for downtown residences. Currently, developers are required to provide a certain number of parking spaces on site or seek permits in city ramps. The latter option has been popular, but space is limited.

Historic buildings are another consideration. There are a number of buildings that either have been or could be designated historically significant. Council members expressed a desire to protect some of those buildings, and one idea to do so is to make a portion of downtown a historic district.

Other items discussed include ensuring Burlington Street, the southern boundary of downtown, is not a barrier to Riverfront Crossings and making Washington Street a two-way road to provide a safer and more inviting entryway into downtown.

City staff will start work this summer on some of the zoning changes related to the items discussed Monday, said Bob Miklo, the city's senior planner. Council member Terry Dickens said the city needs to be careful not to impose standards that discourage developers.

Council members said public input will be important in moving forward.