Three new real estate developments are moving forward in Cedar Rapids, including a 192-unit affordable housing complex near the city’s new Busse Library branch on the southwest side.
All three projects were discussed at Tuesday’s city council meeting.
Affordable housing complex
An affordable housing complex, being developed by Pedcor Investments, is a 192-unit development at 4010 20th Ave. SW, next to the Busse Branch library, which will officially open Sept. 19.
The council voted to approve a resolution of support for financial incentives for the project under the city’s community benefit and economic development program.
Pedcor, headquartered in Carmel, Indiana, has 39 years of experience in affordable housing and more than 37,000 units developed across 22 states and 200 communities, including prior projects in Iowa.
The company has already been awarded 4% tax credits through the Iowa Economic Development Authority for the project.
The development, with a total cost of $30 million, will include 192 units, with a mix of one- two- and three-bedroom apartments. Rents for all units will be targeted at 60% of the area median income (AMI), and are expected to range from $970 to $1,350 per month.
The complex, to be known as the Atheneum, will include eight three-story buildings with 24 units each. Amenities will include a fully-staffed clubhouse, community/TV room, exercise facilities, and a dog park, or “bark park.”
Construction is expected to begin in the fourth quarter of 2026, with completion by the fourth quarter of 2028.
The project qualifies for city incentives under the city’s Community Benefit – Economic Development program. That incentive will provide a 15-year, 100% rebate of increased taxes generated from the project. The city estimates roughly $8 million in new taxes will be generated over 15 years, with $6.7 million rebated back to the developer.
The site is bordered by Edgewood Road SW to the east and Wiley Boulevard SW to the west.
Councilmember Ashley Vanorny said the Cedar Rapids Community School District should be alerted about a potential influx of students in the area as a result of the new development.
Councilmember Dale Todd noted the project required two funding rounds to secure financing and expressed support for the project, given the 60% AMI target serves a population segment currently underserved for housing options.
“It’s a part of the population that we don’t have a lot of housing for,” Mr. Todd said.
The next steps for the project include the creation of an urban renewal area/TIF ordinance and a formal development agreement.
Single-family subdivision
In the second project, the Midwest Development Co. – an entity of Skogman Companies – will be developing a single-family subdivision at 7217 Underwood St. SW.
The council approved a resolution of support for city incentives for the construction of public infrastructure for the project, including grading, public utilities and a public road, at a total cost of $3.9 million.
The city incentives will reimburse up to 50% of those infrastructure costs. Officials estimate $1.95 million be returned to the developer, funded by new tax increment generated from the homes.
The project will also qualify for incentives under the city’s new single-family home subdivision program. Cedar Rapids business attraction program manager Scott Mather said this development will be the first project to use this incentive since it was adopted by the council.
The project itself will be completed in three phases, with 60 total lots – about 20 per phase). Homes are expected to be priced in the $400,000 to $450,000 range. The lots in the development will likely be priced at around $40,000, lower than similar lots elsewhere in the city, which cost around $70,000.
Construction of public improvements will begin in August, with the overall development projected for completion by August 2034.
The project is located near Highway 100 to the west and Highway 30 to the south, south of Morgan Creek County Park and about a mile west of West Willow Elementary School.
Councilmember Tyler Olson asked how lot-cost savings would be tracked, and cited the project as an important test case to encourage other developers to build inside city limits.
Mr. Todd said the single-family housing program sets a significant policy precedent, but that it’s justifiable to meet housing demand identified in the city’s annual Maxfield housing study. Mayor Tiffany O’Donnell added that the market had not been producing enough single-family housing on its own, and that the incentive was a response to that gap.
The next steps for this project also include the creation of an urban renewal area/TIF ordinance and a development agreement.
Mixed-use infill on Ellis Boulevard
And the third project, to be developed by Nguyen Enterprises, an entity of Nick Nguyen, is a mixed-use infill project at 0, 1126, and 1132 Ellis Boulevard NW – the former site of the Ellis Boulevard A&W Drive-In, which was destroyed in the 2008 flood.
The three parcels total about a half acre, city officials said. All three sit within the 100-year floodplain, requiring floodplain ordinance compliance, and and are zoned UMV, a mixed-use designation allowing for buildings up to three stories.
The city’s RFP for the project was guided by the city’s 2017 Northwest Neighborhood Action Plan, which identified this stretch of Ellis Boulevard as a key commercial node warranting higher-intensity development.
The city received one proposal for the site, from Nguyen Enterprises, for three ground-floor retail units and three residential loft units on the second floor.
A staff and stakeholder review group — including a non-competing developer, neighborhood representative, and commercial Realtor — unanimously recommended awarding the project, citing its fit with neighborhood scale and aesthetics and the value of added retail space; the group also emphasized the importance of retail tenants, which will draw foot traffic.
Councilmember Scott Olson said the site had sat vacant for some time, and that the mix of commercial and housing fits the broader redevelopment pattern along Ellis Boulevard, adding that nearby casino development could spur further commercial interest.
A resolution of support for the project was approved by the council, allowing city staff to negotiate a formal development agreement with Nguyen Enterprises.
