Fulton Lofts project breaks ground in Cedar Rapids’ NewBo district

Business and government leaders gathered Wednesday morning to break ground on Fulton Lofts in Cedar Rapids, which is set to become the latest chapter in an ongoing story of housing and economic development in the thriving NewBo district. The $10 million, four-story project is being developed by Mount Vernon-based LTRI LLC, and will be built on a swath of land from 1218 to 1310 Third St. SE, just southeast of the building that houses Brewhemia and the Olympic South Side Theater. It will include a total of 34 one-, two- and three-bedroom market rate units on the upper three floors – some up to 2,000 square feet, with rents ranging from $900 to approximately $3,000 a month – as well as spaces for smaller retailers on the ground floor. Construction is expected to begin immediately, developer Chad Pelley said, noting that he hopes the project is completed by the summer of 2024. The project has been modified somewhat since it was first introduced to the Cedar Rapids City Council in April 2022, bearing a “NewBo Arts” moniker. For example, Mr. Pelley said, the balconies included in the original design have been removed, in a conscious effort to bring residents together in a shared outdoor space. “When I said this is one of the most vibrant, robust neighborhoods, I meant it,” Mr. Pelley said in an interview with the CBJ. “You’ve got people all around. Let's get them down on the ground level, get outside and engage with their neighbors.” To that end, the project includes a “substantial outdoor amenity space” on the north end of the property, tying public and private areas together. Mr. Pelley also said he wants to recruit local, smaller-scale commercial tenants to the project, as opposed to restaurants or larger, national retailers. “We're trying to harmoniously team these commercial spaces so they feel like an amenity to these residents,” Mr. Pelley said. “Quite frankly, you know, I want to see people engaging. If you come down here on the weekends or Friday nights, I want to see no parking spots available. I like that. That means we're doing it right.”

The project is dubbed the “Fulton Lofts” in recognition of the former Park Fulton Filling Station at 1338 Third St. SE, just to the east of the new development. The filling station, built in 1936, still stands and was extensively renovated and reopened in 2015 as a screen printing company known as Red Ball – which, incidentally, was the original working name of the Fulton Lofts project. The building, which still features an historic gas pump out front, is now home to The Shop, a women's clothing and accessory retailer. Speaking at Wednesday’s Fulton Lofts groundbreaking in NewBo, city manager Jeff Pomeranz cited the project as as an example of the kind of infill development the city needs. “We wanted to make sure that this project was something that truly fits right into the neighborhood and it's something that is part of the community, not separate from the community,” Mr. Pomeranz said. He pointed to two similar projects in the area – the NewBo Lofts project, already under construction, and the Loftus Lumber housing project, still in development – as examples of similar projects that are “continuing the momentum and investment in the city's poor neighborhoods” through a variety of partnerships. “There have been times when some of these projects have seemed too difficult, too expensive or had too many obstacles in the way, and therefore properties have sat for years and years without development,” he said. “What we're seeing in Cedar Rapids is really exciting, because now we're seeing those developments.” Debi Durham, director of the Iowa Economic Development Authority (IEDA) and the Iowa Finance Authority (IFA), also attended the Fulton Lofts groundbreaking ceremony. She hailed the project as another step in addressing the state’s longstanding housing shortage. “Our data tells us that the state needs an additional 42,000 homes by the year 2030, and Iowa’s housing stock is quite frankly among the oldest in the nation,” she said. “These needs only underscore the importance of skilled contractors and proactive communities and partnerships, like the ones we're seeing here today, to meet our housing demand.” She also noted the project’s community-building concepts, with open public spaces and walkable elements. “I love the way you're incorporating art into the building design and making it fit into space,” she said. “Placemaking is something that is so important. People want places that are authentic and real, and we all know that real life lives right here.” Jeff Morrow, president of the NewBo District’s Board of Directors, acknowledged the beehive of construction activity in the area during Wednesday’s Fulton Lofts groundbreaking ceremony. “This is a great area,” he said. “It's vibrant, it's growing. These development groups have a choice of where to spend their dollars and (the) significant resources that they invest in our community, and we are ecstatic that they've chosen the District.” The Fulton Lofts project qualifies for incentives under the city’s targeted district reinvestment program based on its location in the NewBo District, according to Cedar Rapids economic development director Caleb Mason. The city also plans to utilize an “above standard incentive program” for the project, under which the standard city incentive of a 10-year, 100% tax abatement is deemed inadequate to make the project financially feasible. The project has also been awarded financial incentives from the Iowa Economic Development Authority, including $660,000 in workforce housing tax credits and $900,000 in brownfield/grayfield tax credits.