Everything old will be new again in IC Ped Mall project

A construction site tucked somewhat awkwardly between the former Mill, the Graduate Hotel and the Iowa City Pedestrian Mall is already aflutter with noise and activity as crews work on demolition and site preparation to make way for a new $54.4 million redevelopment combining much-needed new downtown housing with a revamp of some old Ped Mall friends. Officials from the Tailwind Group, Knutson Construction and Neumann Monson Architects joined city officials and other stakeholders last week in hefting ceremonial shovels and inaugurating the East College Development Project. When it’s complete, sometime around September 2022, the project will bring a new 11-story student housing project to the city skyscape as well as preserve and enhance three 19th-century buildings lining the Ped Mall. “I think we would all agree we’re in a very small site,” said Vince Ellison, Knutson Construction’s vice president and general manager for Iowa, of the tight construction zone that will be home to a building with 102 student housing units and 10 residential apartments. “The site’s a little complex, traffic flows are tricky.” But Mr. Ellison expressed excitement about the challenge and the opportunity to marry new and old – albeit with an upgrade. In addition to the residential complex, which will be situated behind the Ped Mall, plans call for renovating existing space to house a theater, brewery, retail space, bars and a restaurant. “So right here, there’s going to be an 11-story tower, and then, right behind me, you’ve got three plus units that are historic landmark buildings to the city of Iowa City that are going to be renovated. We get to combine the old with the new and we get to do it in one of the most difficult areas of Iowa City. What more can you ask for?” The project was made possible thanks to $12.25 million in tax increment financing approved by the Iowa City Council in January. The council voted unanimously to advance Minnesota-based Tailwind Group’s plan to redevelop the 100 block of East College Street, including renovating spaces in the College, Crescent and Dooley block buildings to encourage a mix of daytime and evening commercial activity. That activity will include new storefronts for small businesses, an expanded Reunion Brewery restaurant and five-vat brewery, and a new home for Iowa City’s Riverside Theatre. “The city was able to come to a tax increment finance agreement with the Tailwind Group for a half block of the Ped Mall between the Graduate Hotel and the Wells Fargo building. Those properties have long been either vacant or occupied by a bar,” Iowa City Manager Geoff Fruin told the CBJ recently. “So, this will be a huge shot in the arm to this part of the Ped Mall.” Developers requested TIF rebates because they had secured maximum allowable debt of $35.8 million for the project, leaving a $9 million gap to be filled by private loan financing. In addition to the TIF, Tailwind plans to seek historic landmark designation for the older buildings to assist with renovation and preservation efforts. Meanwhile, the new 102-unit LEED Gold-certified residential building will feature a mix of one-, two- and three-bedroom apartments – all going for market rates. Developers have agreed to pay “in lieu of” fees totaling $1.8 million toward the city’s affordable housing fund rather than incorporate affordable housing within the building – a decision that did not sit well with several council members and some residents, who vocally opposed the project when it came before the council. But despite some reservations, council members like John Thomas called its benefits “extraordinary.” “It’s really quite impressive,” he said. According to Iowa City Economic Development Director Wendy Ford, benefits include historic preservation of significant downtown buildings and re-energizing commerce in those commercial spaces. Tailwind Group began working on the project after they purchased their first building there in 2017, Ms. Ford said, adding it has since acquired all the buildings on the block except for the Savings and Loan building on the corner, which is not part of the project. “We’ll see a lot of new beds coming into the downtown,” Mr. Fruin said. “And we’re happy we’re able to create a new home for Riverside Theatre and continue to take a strategy that investment in the arts is investment in economic development. Over the last few years, the city’s made significant investments in the arts downtown.” According to architect Neumann Monson’s website, the project provides not just programmable space for the theater, but shop, office and sales counter space as well. It also restores the Crescent building’s third floor – once a meeting hall – to a public gathering space and “strengthens downtown’s presence as a cultural center.” “The project reactivates the street with a range of vibrant tenants, maintaining local character and harmonizing with existing buildings,” it continued. “The new building matches the height of an adjacent hotel but its placement, in the middle of the block along the alley, sets it back from the historic streetscape.” Mr. Ellison said he looked forward to celebrating again when the project is complete 18 months from now. “Let’s go do this,” he said.