The Iowa City City Council approved the $4.5 million purchase of 21 S. Linn St. unanimously July 11 during its regular meeting.
The City of Iowa City does not have any preconceived plans for the land and the funds will come from the city’s general fund reserves.
City Manager Geoff Fruin said the purchase was a “strategic acquisition.”
The history of 21 S. Linn St.
The real estate deal for the former U.S. Bank lot will be between the city and CA Ventures, a Chicago-based developer. The property was purchased by the development firm for $3.8 million in 2021 from U.S. Bank and promptly demolished the building.
The property also previously held Iowa City City Hall before it was demolished in 1962.
CA Ventures planned to build student housing in the South Linn Street property, Mr. Fruin said, after the company developed the RISE at Riverfront Crossing apartments at 435 S. Linn St. and Latitude apartment complex at 104 E. Seventh St. in Coralville. CA Ventures still owns RISE, but has previously sold Latitude.
“They advanced the project all the way to the building permit stage,” Mr. Fruin said. “So (they) put quite a bit of time and energy into developing their concept.”
The plans for the housing building failed its review in February 2022.
Moving the project forward
The city plans to evaluate what downtown needs before moving forward on the project. Mr. Fruin said the city will play a large role in the development and will “identify some high level goals” to partner with the private sector on when developing the site.
Mr. Fruin said the city wants to keep investing in downtown and ensure it remains vibrant. He pointed to the Hotel Chauncey Iowa City property on East College Street as an example of the city’s success when partnering with the private success.
“We just have confidence as a staff, and hopefully you share that, that we can facilitate and guide development that’s in the best long term interest for Iowa City,” Mr. Fruin said. “We do have a track record of that that I think we can lean on.”
The timeline for any building in the lot may be similar to the Chauncey property, he said, which took nine years.
Mr. Fruin also suggested the city not rush to develop the property that currently lays vacant. The deal is likely to close in late August.
“I think we first, probably, need to look back and study the processes that we employ for, say the Chauncey, and decide if that’s the process or if we want to make adaptations to that process when it comes to this property,” he said. “But we would likely, at our recommendation, start the goal setting for the redevelopment of this process in 2024.”
Community input
Iowa Citians made their opinions on the purchase known, both to city staff and at the July 11 meeting.
Iowa City Downtown District Nighttime Mayor Joe Reilly voiced his and the district’s support of the purchase.
He said it will create opportunities for the city and other stakeholders to identify developments that align with retail, residential and community space needs of downtown Iowa City.
“Having control over this land, as Geoff said, can ensure requests for proposals for future redevelopment of the site and take into consideration the needs of the community as well as the market,” he said. “A future council will be able to incentivize development that strikes a balance with the allowable density of downtown while contributing to the streetscape’s character.”
He said the purchase will “shape the face of downtown for decades.”
Mr. Fruin said the City of Iowa City has been fielding interest for the lot and its sale for the past year. Many people in the community have reiterated their want for student-oriented housing.
“Given the current market conditions, I think it’s safe to say that student-oriented housing would likely be the resulting development, should it go to sale on the private market, should the city not pursue this acquisition,” Mr. Fruin said. “As council knows, we’ve put quite a bit of energy into aiding opportunities for student-oriented housing in our Riverfronts Crossing district over the past decade. And, as a reminder, when we encourage that development in the Riverfront Crossing it also kicks in our affordable housing efforts.”
The district is seeing developments for student housing, he said, including two current developments on South Dubuque Street and Riverside Drive.
Director of Better Together 2030 Cady Gerlach also voiced her support for the lot to be under the city’s purview.
“This purchase will allow the city to play a lead role in the redevelopment of this critical property by taking this proactive approach,” she said. “Our community can ensure that the future use of this site aligns with our long term goals, fostering resiliency and vibrancy throughout our community. Without the city’s involvement, market conditions will not produce a development that meets our vision and we risk losing historic properties that contribute to the character and diversity of our central business district. The City of Iowa City’s purchase of 21 S. Linn Street using those general funds is a step towards realizing the goals outlined in the Better Together 2030 All-In Vision plan.”
