Cedar Rapids council approves resolutions supporting two industrial developments

The Cedar Rapids City Council approved resolutions this week supporting a pair of industrial developments on the city’s southwest side. The resolutions, which offer financial support under Cedar Rapids economic development incentives, were unanimously approved by the council April 23 for two industrial developments – a new Airport Commercial Park along Wright Brothers Boulevard SW, east of the Eastern Iowa Airport, and a new headquarters building for Stone Meyer LLC, an entity of Corridor Network Construction. The Airport Commercial Park includes five commercial lots on a vacant site on the south side of Wright Brothers Boulevard SW, just south of the Iowa National Guard Armory and west of Interstate 380. At 15 acres, the project meets the minimum standard for incentives under the city’s Master Plan Redevelopment – Economic Development program. As proposed by Iowa Development I LLC, the $21 million project would comprise construction of five commercial buildings, including two 20,000-square-foot warehouses, four 13,000-square-foot contractor suite buildings, and self-storage units that would include extra storage for the contractor suites and a small business incubator. Council documents indicate the project is expected to retain 40 existing jobs and create 40 new jobs. Under the city’s standard incentive, a 10-year, 50% rebate of increased taxes generated, the project would generate $3.6 million in total taxes over the 10-year period, of which $1.4 million would be rebated back to the developer. Trev Adair, a Realtor with Pinnacle Realty, spoke on behalf of the Airport Commercial Park development team. He said he’s been part of several Cedar Rapids projects over the last 14 years, ranging from Cedar River Paper and the north-south runway at the Eastern Iowa Airport to the water treatment plant and the city’s new FedEx terminal. “Our research tells us that there is a lot of need to support small and medium businesses,” Mr. Adair said. “Part of our research (shows a) significant need or demand for warehouses 25,000 square feet and under. We feel like focusing on small and medium businesses is important. Starting out as a small business myself and growing over a period of time, it's a lot of fun when somebody gives you a chance, and that's really what we’re trying to facilitate here.” The Corridor Network Construction project would provide a new facility for the company, which has been headquartered in Cedar Rapids since 2015 and is planning to “significantly expand operations,” according to council documents.

The new facility is planned at 1265 Wilson Ave. SW, a site vacant since 2005 just south of the Iowa Health and Human Services’ Linn County office building. With a capital investment of $5.4 million, it would comprise construction of a new 50,000-square-foot commercial building, including a 42,000-square-foot warehouse and an 8,000-square-foot office space. The project is expected to retain 70 existing jobs and create 20 new jobs, council documents indicate. Under the city’s standard incentive of a 10-year, 50% rebate of increased taxes and the project’s post-development value, the project is expected to generate $1.6 million in total taxes over the 10-year period, of which $640,000 would be rebated back to the company. Al Meyer, president and CEO of Corridor Network Construction, told the council that the company has expanded rapidly in recent years and outgrown its current facility. With previous fiber optic network-building projects involving entities such as Alliant Energy, the cities of Cedar Rapids and Waterloo, and the Maquoketa Valley REC, “we have opportunities to train people in this trade with fiber-optic construction in Iowa” and asked the council for their support. “The president is putting $100 billion into infrastructure for people in the rural areas, and that’s what we focus on,” Mr. Meyer added. Council member Scott Olson recused himself from voting on the Corridor Network Construction project, indicating that he had worked “a couple of years ago” with the project’s developer to purchase the property. In the case of both projects, an urban renewal Tax Increment Financing (TIF) district would need to be established to allow the city to collect increment taxes and rebate them, under the terms of formal development agreements. That process is expected to unfold throughout May and June.