United Fire Group plans 10-story building downtown Cedar Rapids

CEDAR RAPIDS - United Fire Group announced plans Friday to construct a 10-story, 50,000-square-foot downtown office and renovate the interior of the adjacent American Building.

UFG bought the similarly-sized American Building at 101 Second St. SE in January 2014. The purchase of the building, constructed in 1914, included an adjacent one-story structure at 119 First Ave. SE.

The smaller building would be demolished to construct the new 10-story office tower.

UFG, which employs 625 in Cedar Rapids and 1,025 full and part-time nationwide, plans to add 50 employees in connection with the expansion and remodeling project.

'As we grow, we need more people,” said Randy Ramlo, UFG president and CEO, in comments after UFG's annual shareholders meeting May 20.

'We've expanded our office a lot and we've got people stashed all over downtown Cedar Rapids.”

Ramlo said Friday the new office tower will include architectural features that will complement the historically significant American Building. The latter, which is 45 percent occupied, includes several law offices.

Ramlo said UFG will attempt to accommodate existing tenants during the remodeling.

On Tuesday, the Cedar Rapids City Council will consider sponsoring an application for state financial incentives to help finance the project. The incentives would be in the form of state investment tax credits.

Jennifer Pratt, Cedar Rapids development director, said the UFG project also qualifies for the city's standard economic development program, as core district reinvestment. That would be a 10-year, 44 percent property tax exemption or 10-year, 50 percent property tax reimbursement on the increased valuation.

Pratt said the city has not received a request for increased or additional incentives on the project.

Cedar Rapids Mayor Ron Corbett said the city is pleased that UFG is making plans to expand in the downtown area.

'The company has been a pillar of the downtown landscape, and this expansion shows their confidence in Cedar Rapids and long-term commitment to the community,” Corbett said.

UFG expects construction of the new building and remodeling of the American Building to begin in November, pending city, state and federal approvals and approval of financial incentives,

Completion of the new building and remodeling of the American Building is targeted for September 2017.

Founded in 1946 as United Fire & Casualty Co., UFG through its insurance company subsidiaries is engaged in writing property and casualty insurance and life insurance, as well as selling annuities.

Over the years, UFG has purchased and remodeled a number of downtown Cedar Rapids buildings as the company has expanded its headquarters operations.

The new building would be in addition to the company's existing downtown footprint.

In the aftermath of the 2008 flood, UFG spent $9.5 million on restoration of 50,000 square feet of office space in three buildings. The company also purchased, repaired and remodeled an adjacent building at 109 Second St. SE to provide additional office space.

In 2009, UFG began construction of a three-level, 83,700-square-foot parking ramp at Second Avenue and First Street SE that accommodates about 250 vehicles.

The UFG project would be the second major downtown office tower under construction.

CRST International is building a $37 million, 11-story building on First Street SE between Second and Third avenues SE. The 113,000-square-foot structure will have three floors of parking and eight floors of office space when it is completed in the first quarter of 2016.

Bankers Trust will be the anchor tenant of the building, occupying the top two floors. CRST's corporate headquarters will occupy two floors.