Plans for affordable housing project at former MAC site resurface

A developer is reviving plans for an affordable housing complex on the former site of a fitness club in southwest Cedar Rapids. At its meeting Jan. 9, the Cedar Rapids City Council unanimously approved a resolution authorizing financial support for a $16 million, 58-unit housing project at 1220 Jacolyn Dr. SW, at the intersection of Jacolyn Drive and 16th Avenue. The site was formerly occupied by the Midwest Athletic Club, which was heavily damaged in the 2020 derecho and subsequently demolished. The project, dubbed The Sebastian, would comprise a mix of one-, two- and three-bedroom units, Cedar Rapids economic development coordinator Scott Mather told the council. All 58 units in the development, proposed by KCG Development of Indianapolis, would be reserved for residents at or below 60% of the Area Median Income (AMI), and some of the units would be available to residents at 40% of the AMI, Mr. Mather said. Amenities in the project would include a community clubhouse, community kitchen, walking paths, gazebo, sports court, and a playground, along with a large green space.

KCG Development first proposed a $41.2 million, 180-unit project at the same site in June 2022, and at that time, the council authorized a local match application for a 4% noncompetitive grant from the state’s Low Income Housing Tax Credits (LIHTC) program. However, due to increased construction costs and funding availability, that project was put on hold, according to council documents. The developer is now seeking funding from the Iowa Finance Authority’s competitive 9% LIHTC program to help support the development. The project also qualifies for the city’s standard local match incentive program, which provides a 10-year, 100% exemption of the the increased tax value generated by the site’s improvements, Mr. Mather said. An estimated $1.9 million in taxes would be generated by the project over 10 years with around $1 million being exempted. Councilmember Ashley Vanorny noted that despite recent housing developments in southwest Cedar Rapids, “there's still a lack of housing there that was demolished or that we lost from the derecho.” “I know that it'll help bring people back to the community where they have a lot of connections,” she added. She also said she hoped that Hoover Elementary School officials were aware of the planned development, since many elementary-aged children from the development would likely attend Hoover. “I think that's a great reuse of this site,” councilmember Scott Olson added, “because they're saving the trails and the ponds and the things are already there, plus some of the courts that were with the fitness club.” He also noted the site is close to a city bus route, a grocery store, the planned southside public library branch and other basic services. “I was hoping something like this would get developed there on this corner,” he said. “It's exciting to see they came back and are going to give it another try.”