Hiawatha officials are hoping plans for the “The Core,” a mixed-use development planned near the intersection of Center Point and Robins Road, will serve as a key step in an ongoing effort to establish an identifiable downtown district for the 76-year-old city.
The city of Hiawatha and Manchester-based Merit Development formally announced plans late Wednesday for “The Core,” a mixed-use development planned at the former site of the Oakbrook mobile home park.
The 12-acre property , bounded by purchased by the city in 2010, and the latest plan comes as two previous development plans for the site failed to materialize.
The first phase of the project will include a four-story building on 4.75 acres with 39 residential units and approximately six ground-floor commercial spaces, with an estimated investment of $12 million to $13 million. One of the building’s end caps is projected to accommodate a restaurant with outdoor patio seating.
The project will have a mix of one- and two-bedroom apartments, addressing the city’s ongoing need for housing. Rents will range from $1,095 to $1,395 per month, Merit Development founder and managing director Wes Schulte said.
Two subsequent phases, if pursued, could bring the total to more than 120 residential units and an estimated $27 million in overall project investment.
Hiawatha city manager Dennis Marks said the city is opening a 30-day Request for Proposal (RFP wind0w) for the site, and could formalize a development agreement with Merit Development thereafter if no other proposals are submitted.
The site sits along the Cedar Valley Nature Trail, adjacent to Hiawatha City Hall, Guthridge Park and Cedar Rapids Prep, and within walking distance of the Hiawatha Public Library and Hiawatha Elementary School. A pedestrian bridge is also planned to improve trail and neighborhood connectivity.
The Hiawatha City Council must approve several items before the project can proceed, but Wes Schulte, fonder and managing director of Merit Development, said he expects to break ground for “The Core” in August, with completion of the first phase by the fall of 2027.
Mr. Schulte said he’s been working with the city for “some time,” and proactively approached city officials with his development proposal, which would mirror similar mixed-use projects his company has developed in Peosta and Manchester.
“Hiawatha has been on my radar for quite some time,” he said. “The awesome residential subdivisions, the neighborhoods that they have, a great business district that’s growing, the proximity to Cedar Rapids, all the growth – it’s all kind of meshed into one.”
He also affirmed he expects “The Core” will serve as a key step in developing a downtown presence for Hiawatha, and help spur continued development of the Robins Road corridor, stretching from Center Point Road to Boyson Road.
“With the timeless facade that we’re going to create, and the vibrancy, with the balconies on the second, third and fourth levels, it just gives that vitality that you see in a downtown,” he said.
He also noted that Merit Development will continue to own “The Core” after it’s built, and will serve as the development’s on-site property manager.
Hiawatha mayor Steve Dodson said city officials have pursued the site’s redevelopment for many years, including the two previous failed proposals.
“We’re hoping the third time’s the charm,” he said.
The current proposal is different, Mr. Dodson said, because of the developer’s “commitment” to the city of Hiawatha, as well as his success with similar projects in other communities.
“We never really had a traditional downtown, with two- or three-story brick buildings on a main street,” he said. “I think this development is a perfect example of a developer working with the city and having the same vision.”
He noted that the city has had a Village Center development overlay in place for several years — an overlay that’s now being modified into a Core Village Center Planned Unit Development (PUD) to accommodate the new project.
“Our vision for Robins Road is (development) by piecemeal,” he said. “Not everybody’s going to agree to tear down their buildings and build new buildings, but this will help be a catalyst for further development.”
In his presentation to the Hiawatha City Council Wednesday, Mr. Schulte said the project will serve as a “power block” that will create “an anchor, a sense of place for the community, and hopefully spawn additional investment and attract more people and business to the area.”
“We’re here with the Core of Hiawatha to really add to the strengths that you guys already have,” he said. “We want to be in addition to the equation. Our goal is to be engaged, aligned and execute on a collaborative vision with you all. And after many discussions with leadership, I think we’ve really come up with a solid plan that can be a tremendous impact to the community, one that demonstrates proper placemaking, max curb appeal and value add, to ultimately take things to new heights.”
The council also voted Wednesday to approve rezoning for the project, as well as supporting an application with the state of Iowa for Workforce Housing Tax Credits.
Liz Mathis, executive director of HEDCO, said workforce housing needs drove the organization’s support for the project.
“We’re watching companies struggle to recruit and retain talent partly because there simply aren’t enough quality housing options nearby,” Ms. Mathis said. “The Core directly addresses that. And beyond housing, the commercial component gives local entrepreneurs a genuine shot at a street-level presence in a high-visibility location.”
