Landowners open to downtown Iowa City music building

IOWA CITY - The owners of downtown land where the University of Iowa wants to build a new music building are open to the idea but said Friday their interests will have to be met, too.

“Hopefully, it can be a plan that works for us, them and the Iowa City community,” said Kevin Digmann.

He's a partner in a development group planning a 13-story mixed-use building known as Hieronymus Square on the southeast corner of Burlington and Clinton Streets.

The UI announced Thursday that it wants to build a new School of Music on that land and properties to the east and west to replace structures damaged in the 2008 flood.

The state Board of Regents will have the final say, and the proposal also depends on the UI negotiating the purchase of four privately owned properties on the site.

In addition to the Hieronymus Square land, which is currently a parking lot, the others are:

• Land to the east that includes vacant space and a small building where another set of developers have proposed a 13-story building.

• A Bank of the West branch at 301 S. Clinton St.

• A MidwestOne Bank building at 325 S. Clinton St.

Charlie Funk, MidwestOne president and CEO, said that site is where they do all of their Johnson County real estate loans, and employees and customers love the location. It's also the only MidwestOne downtown with a drive-up. They'd want comparable features in a new site, he said.

“We're very supportive of the community and we're very supportive of the university, and we just need to make sure we find a win-win solution,” he said.

Bank of the West is evaluating its options and will work with the UI for a “solution that benefits our customers, the University and ultimately the Iowa City community,” Bob Dalrymple, a Bank of the West executive vice president, said in a statement.

The two proposed high-rises have attracted attention since they were first unveiled a few years ago. Construction has yet to begin, however, with delays brought on by the slumping economy.

Digmann said what the UI's proposal means for his project is “the part that has to be all worked out.”

The other high-rise comes from Three Bulls development company. Partner Casey Boyd said it's possible the building could work at another location in the area south of Burlington Street, which the city recently said it wants to redevelop.

“I think it's exciting for the community, and we're excited to be a part of it,” he said of the UI's plans.

The four properties have a combined assessed value of nearly $4 million. But if those multimillion dollar high-rises were to be built, the property values surely would increase.

The Three Bulls property is assessed at $397,940. Boyd declined to say what it would take to reach a deal with the UI but said they've put a lot of time and money into the high-rise project.

“We paid a lot more than that for it already,” he said of the assessed value.

Mayor Matt Hayek, in an e-mail message, said the city would do what it can to help what he called an exciting project. But he noted the potential loss of property tax revenue. The UI does not pay property taxes.

“We hope the music school plans can be part of a public-private, mixed-use approach that keeps as much property on the tax rolls as possible,” he said.

A map released by the UI includes an outline showing the proposed School of Music area cutting across Clinton Street. UI spokesman Tom Moore said no design work has been done and it has not been determined whether the university would seek to have a portion of Clinton Street.

Hayek said he'd be surprised if the UI asked for the street to be vacated because of the city's plans for the area south of Burlington Street.