Redevelopment on way for one-time downtown firehouse

CEDAR RAPIDS - The one-time central fire station at 427 First St. SE that did a stint as part of the Science Station is taking another step to a new future.

The City Council on Tuesday approved an economic development incentive in the form of a property-tax break to help with the transformation of the vacant property into office space along with the vacant property next door at 419 First St. SE.

Bruce Lehrman, founder and chief executive officer of Involta, is the deed holder of the two properties.

Caleb Mason, the city's economic development analyst, said that the development features an investment of $2.5 million into the two properties. Work on interior demolition is set to start in December with improvements to the exterior expected to be complete in June, Mason said.

He said the former fire station dates back to about 1900 and is on the National Register of Historic Places. The building connected to it at 419 First St. SE, which is called the Paxton Building, was built about 1923 but is not on the historic list.

The developer of the project is using historic preservation tax credits to help with the redevelopment costs of the fire station building and also has qualified for brownfield redevelopment tax credits, Mason said.

He said the city incentive will forgive 100 percent of the property taxes on the new investment for five years or 50 percent of the taxes over 10 years.

Over 10 years, the city estimates that the property will generate $161,733 in property-tax revenue from its existing value plus the improved value, with an estimated $68,681 of the total returned to the developer as part of the city incentive.