Iowa River Landing tests waters with I.C. businesses

CEDAR RAPIDS - Downtown Iowa City businesses appear to be fair game for leasing efforts for Coralville's Iowa River Landing project, but three downtown businesses that were approached aren't interested.

The city-owned, tax-supported development's use of incentives worth well over $9.5 million to attract Von Maur brought charges late last year that Coralville was poaching businesses from its neighbor community. Von Maur plans to close its Sycamore Mall department store in Iowa City after the new Coralville store opens in 2013.

Von Maur isn't the only Iowa City business contacted by Iowa River Landing officials.

Mark Weaver, owner of the outdoor apparel and equipment retail store Active Endeavors at 138 S. Clinton St. said the invitation was “obviously flattering, but we're committed to the downtown.”

Weaver said he briefly considered opening a second, smaller store at Iowa River Landing. He said Iowa River Landing's representative didn't premise the pitch on whether Active Endeavors was relocating or expanding.

Bottom line: “We love it downtown and we're committed to downtown,” Weaver said. “We love being next to the University of Iowa.”

The owner of Chait Galleries, 218 E. Washington St., also was invited to consider opening in Iowa River Landing.

Owner Benjamin Chait said he's impressed by Coralville's positive approach to helping businesses, which he considers a stark and favorable contrast to Iowa City's. Nevertheless, Iowa River Landing didn't fit Chait's vision for the contemporary art gallery.

“Their model didn't really accommodate the scale of what I wanted,” Chait said. “Their model is to rent and mine is to own.”

Chait said he wants his gallery to be in a walkable “urban context” rather than a suburban shopping development.

Catherine Champion of Catherine's Boutique, 7 S. Dubuque St., confirmed that she was contacted about Iowa River Landing. Champion said she loves being downtown, considers the prospects bright and isn't considering a relocation to Iowa River Landing.

The recent creation of a downtown marketing organization supported by tax revenue, called a self-supported municipal improvement district, has raised the hopes of Champion and some others for the downtown. It is expected to promote shopping and entertainment in downtown, and attract new businesses.

OliverMcMillan, Coralville's San Diego-based development partner for Iowa River Landing, said through a spokeswoman that recruitment efforts aren't necessarily being restricted to businesses that would only consider opening a second location in Coralville.

“There have been conversations and there have been people looking at relocating,” said Karen Hutchens of Hutchens PR, also of San Diego.

Hutchens said there is no “hard and dried policy” restricting efforts to lease to area retailers that might relocate rather than expand into Iowa River Landing, “but that's certainly not the market target.”

Hutchens said circumstances would dictate how OliverMcMillan would view local retailers as prospects to negate accusations of poaching. Hutchins said some leasing contacts have been generated by area businesses themselves.

Hutchens made no apologies for Iowa River Landing's leasing interest in local retailers.

“This is all a hub of regional economic development activity and the regional demographics of the market really suggest national, regional and local brands,” she said.