Marion Methodist Church project may be among CDBG grant applications

MARION — A renovation that seeks to breathe new life into Marion Methodist Church — a historic building that was saved from demolition through a last-minute deal this year — is among several projects looking for city support letters to apply for a Community Development Block Grant program.

The Marion City Council will vote Thursday night on approving letters of support for the five projects that are looking to submit applications.

The federal block grant disaster funds are allocated to the Iowa Economic Development Authority through the U.S. Department of Housing and Urban Development. Linn County will receive 80 percent of the overall $57.6 million, while the other 20 percent — about $11 million — will be used in Marshall, Tama and Benton counties. The IEDA has six years to fully spend the funds

In Marion, projects will go through the East Central Iowa Council of Governments. Money is funneled through these entities because they previously have used Community Development Block Grant funding.

Representatives from Dubuque’s Conlon Construction were at Tuesday’s work session to present their plans for the old church, built in 1896. Earlier this year, the building was named one of the most endangered properties in Iowa by Preservation Iowa.

The church, at the corner of Eighth Avenue and 12th Street, most recently home of the Pentecostals of Greater Cedar Rapids, was sold to Conlon for just under $100,000 to be saved and redeveloped.

The project, called Belltower Lofts, could include up to 30 rental units across three stories. However, city staff could not recommend approval because zoning code in the Uptown area doesn’t allow for residential on the first floor. The project would need a rezoning or code amendment.

Conlon hopes to apply for $3,385,000 to go toward the $5.42 million renovation project. The company has already secured and cleaned up the church, damaged from the 2020 derecho, which included mold remediation.

“Three weeks ago, we found out about the block grants,” Brian Kubik, Conlon director of business development said. “IEDA was so interested in this project that they came out last week and were extremely excited about it. Currently, we’re proposing multifamily units, some commercial and art walk infrastructure improvements.”

The project took a turn when Conlon found out the church would not qualify for historic tax credits through IEDA.

“Something as simple as leveling the floor in the sanctuary would disqualify us,” Kubik said. “But we did get the Brownfield Award. So our next option is the block grant.

“We’ve continued to market the church to restaurants, breweries, etc, to get the feel of what's going on with that. And while doing that, we had to determine best use and what's financially feasible for the property,” Kubik added.

Letters of support from the city are needed for IEDA to seriously consider CDBG applications. After some discussion at Tuesday’s work session, the city council seems to be ready to vote to approve a letter of support. The council acknowledged there are conversations to be had and that Conlon will eventually have to go through a rezoning process to bring their current vision to life.

“We can make sure a letter of support recognizes there is still a lot of work to be done. There’s a level of zoning the petitioner would have to go through. Just because the council expresses support, it's not a blank check to ride through the city process without addressing those concerns,” City Manager Ryan Waller said.

Matt Mulligan, president of Conlon Construction, said the project could change as the company continues conversations with the city and community partners.

“The opportunity to preserve options is what we’re in pursuit of,” Mulligan said. “Does it go from 30 units to 25? Maybe it does. Or 30 to 20 with commercial? Maybe it does. But the goal is we want support from the city at this point. I've got to be frank as owner of the building, I didn't know where to go with historical tax credits being subjective as they were. That's a significant credit we were not able to pursue.”

“Building the new part is easy and it will be a great addition,” Mulligan added. “But I can’t go to a bank and suggest this makes sense without this grant. This isn’t necessarily what we set out to do but the rent rates can’t be supported by just any business. We knew we had to move a mountain when we got into this and here we are. This grant preserves our options, but there’s a lot of work to be done.”

ECICOG Planner and Grant Specialist Paula Mitchell said the state is looking for “shovel-ready projects” to start seeing construction in 2023. Mitchell also said IEDA is looking at awarding grants in late January or in February.

“For an undertaking like this church, there might be more flexibility,” she said.

Kubik said if the grant is awarded, work could start in the spring.

Other projects

In addition to the church project, three other Marion projects are looking for block grants, including another apartment development in Uptown Marion.

The Hoth Flats, planned for the corner of Eighth Avenue and 10th Street, would consist of 20 units in a three-story building with the first floor providing parking.

The $5 million project, developed by Rinderknecht Associates of Cedar Rapids, is seeking $1.9 million.

The Winslow House Senior Apartments are 26 rental units planned for W. Indian Creek Road and Winslow Road. The $6.5 million project is seeking $2.47 million. The developer is the Capstone Group/WH Property LLC.

The Ridge at Indian Creek are 20 owner-occupied units across 10 duplexes planned for the northeast of 35th Avenue and Tower Terrace Road. The $5.97 million project is seeking $3,269,820. The developer is Abode Construction.

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