Cedar Rapids officials said this week they’re increasingly “optimistic” about the prospects for attracting a new grocery store operator for the former Hy-Vee store at 1556 First Ave. NE.
During the Cedar Rapids City Council’s Feb. 25 discussion, and formal approval, of a new First Avenue East Micro-Area Action Plan, Bill Micheel, the city’s economic and development services director, offered an update on the city’s efforts to bring a new grocer to the former site, after Hy-Vee closed their store there in June 2024.
“We have been working with two individuals from the Kansas City area that own and operate right around 10 grocery stores in low-income neighborhoods in the Kansas City market,” Mr. Micheel said. “They reached out to us and are very interested.”
The city partnered with the Kansas City grocery group, which hasn’t yet been identified, to apply for a $250,000 grant from the America’s Healthy Food Finance Initiative FARE Fund, funded through the 2014 Farm Bill and administered by the U.S. Department of Agriculture (USDA), to “assist with initial capital costs of freezers, refrigeration units, coolers, shelving, and other necessary equipment” that would be needed to reopen the site as a grocery store.
The FARE Fund, launched in June 2024, is designed to increase access to healthy foods in communities underserved by grocery stores.
Mr. Micheel said the city should receive word on the grant application in March. If the grant is approved, he said, the grocer would use those funds to purchase equipment needed to outfit the store.
City officials said in January that representatives of the Kansas City-area grocer and Hy-Vee had connected for a tour of the former store.
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Cedar Rapids officials ‘actively pursuing’ new grocer for former First Avenue Hy-Vee
Mr. Micheel said the city also made a connection with the Independent Grocers Alliance (IGA), an international grocery company supporting local grocers, “and if for some reason the individuals from from Kansas City don’t work out, they have indicated that they will be able to connect us with parties that are interested in operating that grocery store.”
He noted that either option would require partnering with Hy-Vee, the site’s current leaseholder, on an agreement with the property owner, to either transfer the lease to the new grocery operator or make the site available for purchase.
“I am optimistic moving forward that there will be some opportunities there,” Mr. Micheel said. “I see some green lights ahead, but there are still some challenges.”
A formal agreement hasn’t yet been reached for the site, city officials stressed.
The timeline for the city’s development of a new First Avenue East Micro-Area Action Plan, approved by the council Tuesday for the economically-challenged area on the east side of the city’s downtown area, was “expanded” by the Hy-Vee store closure, said city planner Noah Zeker.
The newly-approved “micro-area” action plan covers an area of just under 60 acres, bounded by A Avenue NE to the north, 17th Street to the east, Second Avenue SE to the south and 12th Street/Coe Road to the west.
According to city officials, action plans are designed to “help the city prioritize public investment in a designated area” and “build engagement with community stakeholders: businesses, residents, and employers. Ultimately, the plans are designed to create a vision for the area with goals and action steps to reach that vision.”
The First Avenue East micro-area action plan, touted as “a vision for a vibrant First Avenue commercial corridor,” was developed after a series of meetings with stakeholders and an open house in a process that began in May 2024.
It was spurred by three priorities in the area – pedestrian safety and unsanctioned First Avenue crossings; multiple business closings in recent years that have led to vacant storefronts; and barriers to walkability of the Wellington Heights and Mound View historic neighborhoods.
The plan, which is presented in an extensive and interactive package on the city’s website, includes three main elements – Land Use, Connectivity and Placemaking – with associated goals and action steps, all intended to provide “a roadmap to support the future vision of the area through implementation of the plan.”
The main elements, and their associated action steps:
- Land Use – supporting opportunities for retail and restaurants by recommending new ways to recruit and retain businesses, identifying relevant economic development program connections and helping to connect local businesses with students looking for employment; and supporting the redevelopment of vacant lots by communicating maintenance requirements and facilitating ways to use currently under-utilized land.
- Connectivity – prioritize safe and efficient streets by reviewing and implementing pedestrian “head starts” to improve safety, enhancing streetscapes and road designs, studying the feasibility of bus turn-off lanes in the plan area, and increasing the safety and visibility of on-street parking.
- Placemaking & Character – create a “foundation for future success” by supporting or facilitating public events to draw residents and visitors to the area, enhancing or adding programs to help area businesses with area-specific challenges, identifying grant opportunities for the non-profit College District, and supporting the College District’s efforts to implement a Self-Supporting Municipal Improvement District (SSMID); and further the area’s “identity and vibrancy” through private and public art installations, fostering partnerships among artists and stakeholders to activate public art projects, and securing funding for a historic context statement to describe the area’s rich history.
The plan, approved by the council Tuesday, will now be incorporated into the city’s overall Envision CR planning framework.
Council member Ashley Vanorny noted that interest in the plan’s development was heightened with the Hy-Vee closure, “but then you can also see the numbers translated to actionable items, like people coming to these presentations and and using their voice to be more than just a voice, to be a part of the planning.”
While acknowledging public participation in the plan’s development was “low,” she noted that “I hope that anybody who is interested … really studies where the feedback is, what the current state is, where the potential is going, and is a part of the process, because this is going to be a continued effort.”
Council member Dale Todd hailed the plan’s completion as an important step in redeveloping the economically challenged First Avenue East district.
“I think it’s no secret amongst us that we’ve got an issue in that area,” Mr. Todd said. “And I remember after the flood years ago, a project had a major investor, and they asked me ‘what’s the plan for the neighborhood?’ And I had to look at them and say, ‘there really isn’t a plan.’ There is so much opportunity. You see it each day at Starbucks and Scooters and Wendy’s and these other places, and you ask the question – what does it take to get the rest of the retail ramped up to this place? And it’s challenging. It’s probably one of our most significant challenges that I think we’ve had. But the good news is, all we can do is get better with the plan and with the work that you’re doing behind the scenes, and a lot of it is tough work. These commercial businesses, they look at bottom lines. While we like to think we’re great all the time, they have their own perception, and it’s our job to change that perception and bring them around to where we think it needs to be. And this is the first step. Now comes the hard part.”
Mayor Tiffany O’Donnell compared the area’s challenges to those faced when the NewBo City Market was being established in a “blighted” area.
“We knew that whatever we put there was going to be a real catalyst for development,” she said. “And I feel the same way about what we put at Hy-Vee, what we put where that (now-closed) McDonald’s is. As mayor, if you ask me about things that keep me up at night, it’s that area, and I think mostly because there’s so much potential, and now (that) we do have that plan, it’ll be incredible to see what happens … I just think it we are on the cusp of something really great there.”
