Cedar Rapids council picks Conlon to develop new 136-room hotel near New Bohemia

Conlon Construction has been selected as the developer of a new 136-room hotel near the New Bohemia neighborhood in southeast Cedar Rapids. The Cedar Rapids City Council voted unanimously Tuesday to approve Conlon’s proposal to develop the property at the intersection of 2nd Street and 12th Avenue SE, just northwest of the African American Museum of Iowa. The property has traditionally been known as Lot 44, a parking lot, but has been substantially underused in recent years, prompting the city to issue a request for proposals to redevelop the property. Conlon Construction was the only firm to submit a redevelopment proposal for the site. The hotel, which will be under the Marriott Aloft brand, will include amenities such as meeting and outdoor spaces, a fitness center, indoor pool and bar. Ben Simon, vice president of operations for Conlon, said in May that the hotel proposal had been developed over the previous eight months in conjunction with Jacksonville, Illinois-based Hospitality Specialists, after city officials indicated they were receptive to development proposals for the property, which has been owned by Conlon for “a number of years.” “We were able to bring (Hospitality Specialists) into the Cedar Rapids market and introduce the town and the neighborhood, and realized pretty quickly that it would be a good fit for them, a good fit for us and a really good fit for the Aloft brand,” Mr. SImon said. “We’ve been working for quite a while trying to figure out if the site is the right site, to make sure that we can maximize the area that we have there to place the hotel, but then also see if there’s some other things that we can do adjacent to it to fill it out and create a complete development.” That additional development could comprise construction of 10 owner-owned condominium row homes on the property, Mr. Simon has said. Some leaders have expressed concerns about parking in the area in connection with the project. City officials said Tuesday that Lot 44 currently has about 555 parking spaces. a minimum of 145 spaces would remain available throughout construction of the city’s flood control system, The new Eighth Avenue “Arc of Justice” bridge, and the hotel, and 477 spaces will be available in the area after the projects are completed. Officials also said the project aligns with the New Bohemia-Czech village Area Action Plan, completed in 2019, which calls for the inclusion of a hotel in the study area. The council is set to consider a formal development agreement for the hotel project in November or December, and Mr. Simon previously said Conlon hopes to begin construction in early 2025 and open the new hotel in the summer of 2026. In other business, the council: -- Approved a resolution authorizing city incentives with Sunline Inc., an entity of Cassill Motors owner Roger Cassill, for a phased master plan redevelopment of the Hawkeye Downs property at 4400 Sixth Street SW. The project, with a minimum investment of $33.6 million, is expected to be completed in two phases. The first phase, encompassing 11 acres, includes construction of a new 45,000-square-foot expo center with suites overlooking the Hawkeye Downs Speedway, a 42,000-square-foot flex space building, a new go-kart track and a 900-square-foot tech barn for the speedway. The second phase, covering six acres, would include an 88-room hotel, a 2,500-square-foot restaurant and a 30,000-square-foot flex space building. The project is expected to create 32 jobs and retain six existing jobs. Standard incentives for the project include a 10-year, 50% rebate of increased property taxes generated by the project. With the project expecting to generate $6.7 million in property taxes over the 10-year period, $2.5 million would be rebated back to Sunline Inc. The project qualifies under the Large Site Master Plan – Economic Development program, and Sunline Inc. has also applied for brownfield/grayfield state tax credits due to the need for fly ash remediation on the site.

-- Approved the first reading of an ordinance establishing an urban revitalization area for the construction of the Gray Hawk housing development along Prairie View Lane SW, north of Wright Brothers Boulevard and east of Interstate 380. Plans call for the $16 million project to be developed in three phases: Grey Hawk I, a three-story multi-family building with 41 one-bedroom units, 21 of which must be affordable as required by Community Development Block Grant funding, along with surface parking; Grey Hawk II, a three-story multi-family building with 48 one-bedroom units and ground-level covered parking; and “The Winds” villas with 36 units, including 18 two-bedroom and 18 three-bedroom units, two-stall attached garages, and a clubhouse and fitness center. The city’s standard incentive program provides a 10-year, 100% property exemption of the increased value generated by the project. Based on the proposed investment, the project is expected to generate $3.5 million in total taxes over the 10-year period, with $1.9 million being exempted.

Authorized standard city financial incentives under the Community Development-Economic Betterment Program for the construction of a new corporate headquarters for Rex Concrete at 551 50th Ave. Dr. SW. Plans call for construction of a $4 million, 20,000-square-foot commercial building with a mixed-use office and shop space. The project would create 11 new jobs. The company, which is currently headquartered in rural Linn County, has worked on several high-profile projects in the area, including the McGrath Amphitheater, Veterans Memorial Stadium, BAE Systems and the PCI Medical Pavilion. The standard incentive provides a 10-year, declining-scale exemption of increased value generated by the project. Based on the investment and estimated post-development value, the project is expected to generate $1.4 million in total property taxes over a 10-year period, of which $500,000 would be exempted. In order to provide the incentive, an Urban Revitalization Area would be established for the project.