Iowa City OKs first reading to rezone ACT campus

Nearly eight months after ACT, Inc.’s announcement to sell its campus property to Iceberg Development Group, the gears of progress are finally in motion. At its Jan. 7 meeting, the Iowa City Council passed the first of three readings considering an ordinance to “conditionally” rezone approximately 49 acres north of Scott Boulevard and east of Dodge Street from office research park and interim development research park zone to a mixed use zone, which would allow for housing and commercial development.

The development company, owned by Jim Bergman, has expressed interest in converting the existing buildings on campus into senior housing, “while also leaving a portion of the existing buildings for ACT office space,” a city document in the agenda stated. Tentative plans are to eventually construct other housing units, with space reserved for commercial development. During the public hearing at the council meeting, a representative for Iceberg Development Group gave a short presentation. “This is a big, exciting project for Iowa City,” said Steve Long, owner of owner real estate development company Salida Partners. “Having watched the campus go from 1,000 employees to what it is now, we have an opportunity here to bring something unique that fits the comprehensive plan and the goals of Iowa City.” Iceberg Development Group has not yet officially closed the transaction with ACT, Inc. -- now known as IntermediaryEd -- Mr. Long told the CBJ, because the deal is contingent on rezoning the property, and he declined to disclose the purchasing price. Once the deal closes, he estimates there will be a six to eight month interim in which the developer will pursue research and design options for the senior housing. Each building is estimated to accommodate 60-70 units. “There’s such a demand for senior housing, and we’ve received a lot of positive response so far,” Mr. Long said.

Environment, traffic concerns

The city and developer hosted a Good Neighbor Meeting on Oct. 24, where residents voiced concerns about the natural areas east of Oaknoll East, particularly the ravine located in the southwest corner of the proposed rezoning area. During the meeting, a preliminary sensitive areas plan identifying apparent protected slopes was reviewed. Officials noted that if these slopes are confirmed as protected through a final survey, the ravine area is unlikely to be affected. “It was also noted that the City of Iowa City's sensitive areas ordinance has woodland retention requirement rates which would come into consideration,” an agenda document reviewing the meeting stated. The primary traffic concern involves the private street network in the rezoning area. “They were not developed with the oversight of the city necessarily," said Danielle Sitzman, Iowa City development services coordinator, during the council meeting. "We're not sure of their condition, but we do want to ensure that as development does occur in this area, that all of that road network is interconnected, rational, able to support traffic.”

To mitigate potential impacts, the city required the developer to conduct a traffic impact study to evaluate the effects of the proposed mixed-use zoning and identify future road upgrades. “At this point, staff is not recommending any offsite transportation improvements, like additional lanes for turning or traffic signals, but we would require, with future development, to again restudy those with future traffic studies, so that if they do need to be implemented, they're accommodated as part of the development at the time that the development happens,” Ms. Sitzman said.

Pandemic casualty

ACT began consolidating its physical operations following the pandemic, when many employees opted to continue working off-campus in remote or hybrid locations, leaving the buildings empty. In 2022, ACT sold the Tyler Building on its main campus to the Iowa City Community School District. The district is repurposing the facility into the Center for Innovation, a hub for project-based learning and programming designed to advance its Project of a Graduate initiative. The vacant buildings, along with the rezoned land, will help solve Iowa City’s housing shortage, and officials expressed positivity toward the proposed senior housing. “I’ll be supporting this because it's what we need, I think. I’m very happy to see a second life for that beautiful space in Iowa City," said council member Josh Moe. “It feels good that the community recognizes that it’s a positive thing and can expand Iowa City in a good way,” said Mark Seabold, principal architect with Shive-Hattery, which conducted the traffic study on behalf of Iceberg Development. The council voted in favor 4-0, with council member Megan Alter recusing herself due to a legal conflict.