CEDAR RAPIDS — Construction is expected to begin shortly after next Friday’s groundbreaking for The Depot, a $20 million mixed use development behind the NewBo City Market.
Ahmann Companies Inc. is developing the four-building, 90,000-square-foot residential, office and retail complex on the 4.8-acre site of the former Iowa Iron Works plant in the 400 block of 12th Avenue SW.
“The Depot will bring people to the area who want to live, work and play within a walkable environment,” Chad Pelley of Ahmann Companies said in a news release. “We have had a tremendous amount of interest from businesses that want to relocate to the area, as well as individuals interested in living in the neighborhood.”
The buildings will be from three to five stories in height. Pelley said initial occupancy should be available in the spring or summer of 2016.
“We’ve been working with several groups that will bring 100-plus jobs to the neighborhood, and we hope to have the details finalized for an announcement soon,” said Joe Ahmann of Ahmann Companies.
The Cedar Rapids City Council approved a development plan with Ahmann Companies in November. The company purchased the city-owned former brownfield site and was provided a 10-year, 100 percent property tax break in a tax increment financing agreement.
The Depot is expected to start generating $450,000 a year in property tax revenue after the 10-year tax increment financing period ends.
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Last week, the Cedar Rapids City Council conveyed to The Depot a piece of city-owned property from the former Iowa Iron Works site that has been leased to NewBo City Market for parking. The council also agreed to sell land to The Depot that now is a railroad corridor between the market and The Depot site, stretching between 10th and 12th avenues SE.
The Depot and NewBo City Market are entering into their own agreement on the sharing of parking.