Council sells former library to TrueNorth over two other bidders; TrueNorth needs the new home as it moves to make way for new library

CEDAR RAPIDS - TrueNorth, which is leaving its current home to make way for the new library, will make its new downtown home at the site of the former library.

The City Council last night voted 7-0 to accept TrueNorth's proposal for the flood-damaged library building over two proposals.

Prior to last night's meeting, the City Hall's professional staff had reviewed the three proposals using seven factors. City staff last night recommended TrueNorth's proposal.

In one key factor, the staff calculated that the TrueNorth proposal would provide $1.26 million in financial tax impact for the city over 10 years while a second proposal, from the Intermec Corp., would provide a $924,000 impact.

A third proposal for the former library came from Jody Keener of J.K. Properties LLC. He proposed to turn the building into a toy museum and retail outlet, though the financial impact for the city would be just $84,000 for the 10-year period, the city's staff stated.

According to city documents:

True North, an insurance and financial services firm, said it will pay $250,000 for the former library, an amount it will subtract from the purchase price to the city of its existing site, which it has agreed to leave to make way for the city's new library. However, the city will receive a lease fee from TrueNorth for up to 15 months at a rate of $10,000 a month as TrueNorth stays in its current home while the library site is being renovated for the firm.

TrueNorth has put a price tag of $7.5 million on its existing site on Fourth Avenue SE across from Greene Square Park.

TrueNorth says it will invest a minimum of $7.5 million in the building, will retain 120 jobs and will create 50 new jobs in the future with an average wage of $90,000 a year.

Meanwhile, Intermec, which now occupies buildings across Second Street SE from the former library, proposed to use the building for an engineering and technical support center and marketing center. In the Intermec proposal, the Dummermuth family, which owns other downtown property, would have purchased the building for $350,000 to lease it to Intermec. The owner planned to reinvest $3.8 million into the facility plus another $2.2 million in furniture and equipment. Intermec said it would retain 252 jobs with an average annual wage of $86,000.

“Both of these companies are essential to the success of the downtown,” Mayor Ron Corbett said. “Now we need to reach out to Intermec and work with them on an alternative location in the downtown.”

Council member Justin Shields last night said TrueNorth has suggested that it might have some room for Intermec's needs in the former library.