The release of nearly $2 million in federal grants is clearing the way for construction to begin this fall on the long-planned “Next Level Local” expansion project at the NewBo City Market – but market leaders say they still need donations to bring the project to fruition.
Last year, the market was awarded reimbursement grants of $1.3 million from the U.S. Commerce Department’s Economic Development Authority (EDA), $458,767.90 from the U.S. Department of Agriculture (USDA) and $30,000 from the National Endowment for the Arts.
Those grant funds were paused in February, and market leaders voted at that time to delay construction on the project.
However, NewBo City Market CEO Julie Parisi said Thursday, April 10 that the federal grants have now been released, and a groundbreaking ceremony for the project will be held in September.
It’s satisfying that construction on the project is finally able to proceed, Ms. Parisi said.
“We were in the same boat as a lot of nonprofits in our community, and without a lot of direction or explanation as to why the federal funding pauses took place, we just had to hope for the best and wait for a decision to be made,” Ms. Parisi said. “It just so happened that the decision took three months, so it did create a situation where we had to really look at the timeline, and when it would be the most realistic to proceed. Ultimately, I and the leadership team here at the market, along with our board, decided that it just made sense to wait until Sept. 1 to do our groundbreaking, because there was just too much uncertainty with when that federal funding would come through.”
A total of $4.25 million has been raised for the project to date, but due to rising construction costs and looming tariff concerns, the project’s total budget has increased, and the market now needs to close a $1.25 million funding gap.
To help complete the fundraising effort, Cedar Rapids City Council member David Maier and his partner, Matt McGrane, are offering a community challenge. From now through August, every dollar donated to the “Next Level Local” capital campaign will be doubled, up to $50,000.
“After the 2008 flood, NewBo City Market played a key role in reimagining what recovery and resilience could look like in Cedar Rapids,” Ms. Parisi said in a release. “Now, we’re stepping into a new chapter – an economic renaissance built on innovation, inclusion, and local pride. This expansion is about more than bricks and mortar. It’s about continuing to be a catalyst for bold ideas, thriving small businesses, and a vibrant community.
The nonprofit business incubator’s “Next Level Local” capital campaign for the $6.1 million expansion officially launched in May 2024.
The project will enhance the nearly 21,000-square-foot existing market and add nearly 9,000 square feet of new construction.
It will add a second floor to the interior of the market’s Rotary Hall, and also includes balconies for outdoor patio space, a free coworking lounge, a podcast studio, a mental health therapy clinic, a family sanctuary, a food production kitchen, a grocery store and an indoor stage for live events.
There are also plans to open the market seven days per week once the expansion is complete. Currently the market is open Wednesday through Saturday from 10 a.m. to 8 p.m. and Sunday from 10 a.m. to 4 p.m.
The NewBo City Market is accepting donations for the “Next Level Local” campaign at newbocitymarket.org/next-level-local.
The market will also host fundraising challenges through the summer at the Rock the Block, Food Truck Tuesdays, and Meet Me at the Market events.
The project was also awarded a $500,000 Community Attraction and Tourism (CAT) grant in November from the Iowa Economic Development Authority (IEDA) Board.
Opened in 2012, the NewBo City Market is a public space promoting health, happiness, and well-being in the New Bohemia District near downtown Cedar Rapids. It serves as a gathering place, business incubator, and event center, serving many different needs for a wide spectrum of people and organizations.
