A new mixed-use building project is coming to a long-vacant downtown commercial building along Second Avenue SE – along with two other housing developments on the city’s northwest side.
A development agreement with KN Enterprises, an entity of Kevin Nanke, for 611 Second Ave. SE, was approved by the Cedar Rapids City Council at its meeting Tuesday, Feb. 10.
The agreement calls for a $4 million investment in the property, including a restaurant or retail component on the building’s first floor and up to 13 market-rate apartments on the second floor.
Construction on the project is set to begin in March, with completion by the end of 2028.
The project was awarded $267,000 in state workforce housing tax credits in August 2024. The council also approved standard incentives under the Local Match-Economic Development program for the project. That program provides a 10-year, 100% rebate of the increased taxes generated by the project, and based on the investment and estimated post development value, the project is expected to generate a total of $480,000 in taxes over a 10-year period, of which $275,000 would be rebated back to the developer.
The building, just east of the Green Square Meals facility, formerly served as the longtime home of Tucker Manufacturing and Tommy Tucker Realty. It was most recently occupied by the Black Stock Motorcycle Company, which closed in January 2020.
Council member Ashley Vanorny expressed her support for the project.
“There’s a lot of small properties like this that have just been vacant or underutilized for a long time,” Ms. Vanorny said. “I’m really excited that there’s going to be some life back down there, especially (since) there’s potential for the upstairs to be rentals. This aligns really well with our downtown vision planning (and) breathe some vibrancy back into downtown, which we really need.”
Two other development agreements along Ellis Boulevard NW were also approved by the council Tuesday.
One, being pursued by Ellis Revitalization Group LLC, an entity of Eric Gutschmidt, will bring a housing redevelopment project at Ellis Boulevard and Eighth Street NW.
With a $3.25 million investment, the project will include a mix of 13 residential units, including two triplexes with six total townhomes, three bedrooms and 2.5 bathrooms each, and one detached accessory dwelling unit (ADU), along with two-stall attached garages.
It will also include two duplexes and two detached ADUs, with a mix of two-and-three-bedroom units and detached garages. Construction of the units is expected to start in September and be complete by September 2028.
Standard incentives for the project will provide a 10-year, 100% rebate of the increased taxes generated by the project. Based on the investment and estimated post-development value, the project is expected to generate a total of $450,000 in taxes over a 10-year period, of which an estimated $375,000 would be rebated back to the developer.
The second project, by developer Mods Enterprises LLC, comprises a $1.5 million investment at at 1319-1333 Ellis Boulevard NW.
It will include seven townhouse units – four rentals and three for sale – each with three bedrooms, 2.5 bathrooms and two-stall garages, along with paving of an adjacent alley.
Construction is expected to begin in May and be completed by May 2027.
The standard city incentive for the project will provide an 11-year, 100% rebate of the increased taxes generated by the project. Based on the investment and estimated post-development value, the project is expected to generate a total of $300,000 in taxes over a 11-year period, of which an estimated $250,000 would be rebated back to the developer.
