Non-profit Cedar Rapids group gets $100,000

CEDAR RAPIDS - The non-profit Neighborhood Development Corp., which was created with the help of federal disaster funds and the support of the City Council two years ago, is getting $50,000 in backing from the city in each of the next two budget years.

The non-profit corporation's mission is to buy, renovate, build, manage or sell property in the city's core neighborhoods in spots in which the private sector is not interested in investing.

Bill Prowell, a Cedar Rapids attorney and president of the non-profit's nine-member citizen board, and Marty Hoeger, the corporation's executive director, told the City Council this week about three success stories that have resulted in some $6.5 million in reinvestment in the city.

Firstly, the corporation purchased the flood-damaged Village Bank, 1201 Third St. SE in the heart of New Bohemia, cleaned it up, secured historic tax credits for use in renovation and sold it to a private entity. It's now Capone's restaurant and bar.

In addition, the corporation purchased a vacant site, which had been home to wholesale distributor JP Gasway Co., 1113 Sixth St. SE, to prevent a tobacco outlet store from building. The corporation then sold the site to a developer who is building a mixed-use building with apartments and store space.

Thirdly, the corporation purchased the property of a flood-damaged church after it was demolished at 601 First Ave. SW. The corporation will construct a mixed-use building with five apartments and commercial space on the site and has plans for 10 more apartments in the same area.

Hoeger told the council that the corporation also is participating in the city's Single Family New Construction Program, which uses federal disaster dollars to provide incentives to builders and home-buyers to get homes built on city-owned lots in the flood-impacted neighborhoods of the city. The city has identified six addresses on which the corporation can build new homes: 1712 Hamilton St. SW; 626 A Ave. NW; 628 A Ave. NW; 630 A Ave. NW; 710 Seventh St. SW; and 807 Fifth Ave. SW.

City Council member Kris Gulick noted this week that government often is required to pay more for a piece of redevelopment property than a non-profit like the Neighborhood Development Corp. and, as a result, property that otherwise would sit empty can get redeveloped.

Council member Monica Vernon said the non-profit can help bring spots in the core of the city back to life so not all of the city's development occurs on its periphery.

“We don't want to look like a doughnut where a hole is cut out,” Vernon said.