Proposed Cedar Rapids medical district boundaries grow

Boundaries for the proposed Cedar Rapids medical district are expanding.

The district, which stretches from St. Luke's Hospital to Mercy Medical Center, will add 38 parcels on the east side of First Avenue between 12

^th

and 13

^th

streets, to the alley between Second and Third avenues SE.

First Avenue properties run from Casey's General Store, 1201 First Ave. SE, to Brewed Awakenings, 1271 1st Ave SE, but do not cross the street to Coe College.

Medical district coordinator John Helbling said William Olinger and Phil and John Wasta, who own about 20 of those parcels, separately asked the steering team to add the area.

“Because they own the majority of the property value, we were willing to add it,” Helbling said.

The addition brings the number of parcels in the proposed district to 269, with an assessed value of $137.5 million, up $6.6 million from about $131 million previously.

State law requires 25 percent of property owners, representing at least 25 percent of assessed value, to agree to a self-supporting municipal improvement district, or SSMID.

Helbling said petitions for creation of the SSMID will be presented to the Cedar Rapids City Council on Feb. 1.

The district, which will be known as MedQuarter Regional Medical District, is intended to become a regional medical destination and serve as an economic engine in Cedar Rapids.

Physicians' Clinic of Iowa is building a $36 million medical mall on Second Avenue SE that will anchor the district, along with the hospitals.

Commercial and industrial properties within the district would pay an extra tax used for improved security and other amenities.

That includes rental properties.

James Houghton, an Iowa City attorney who owns the Hampton Court Apartments at 1261 and 1263 First Ave. SE, said he is in favor of adding the area to the proposed medical district.

“I think that's good for Cedar Rapids,” he said.

The potential levy is $3.46 per $1,000 of assessed value.

Houghton doubted that he would pass along the additional tax to renters in the 39 units because “they are lower income and probably could not (afford) it.”

He said the property has been for sale for about two weeks, with a $795,000 asking price.

Houghton is unsure how having the property in the medical district might affect potential buyers.

“It could be beneficial,” he said, “but if there are additional taxes, a buyer could look at it as a negative.”