On a celebratory and windy afternoon, state and local officials gathered with developers Aug. 20 for a groundbreaking ceremony for the long-planned NewBo Loftus mixed-use project in the heart of the New Bohemia neighborhood in Cedar Rapids.
The $36 million project, at 900 Third St. SE, is a joint project between developer GLD Commercial, general contractor Conlon Construction and OPN Architects.
Site work has already begun for the five-story NewBo Loftus project, which will include 186 market-rate apartments, featuring studio-three bedroom units and two two-story lofts, along with 11,000 square feet of first-floor commercial space.
It will also include “state of the art” resident amenities, such as Wi-Fi keyless controlled access throughout the building, indoor parking garages with dedicated bike storage and wash stations, a fifth-level patio and shared social space, monitored video security in common areas, a fully equipped fitness center, and four elevators for easy access to all levels.
Developer Dave Drown, principal and co-founder of GLD Commercial, said the project will help address a longtime shortage of market-rate apartments in Cedar Rapids.
“There was a void in the market and a demand from the community for downtown housing in particular,” Mr. Drown said.
Mr. Drown also noted the project, encompassing several acres, has assembled between nine and 11 separate parcels, “so that was a challenge, and demolition was a challenge.”
“The site was large enough that we could do a larger-scale project, which is rare for an infill redevelopment in the heart of the city,” Mr. Drown said.
The project is moving forward after several previous plans for the site failed to materialize due to disputes between developers and the O’Connell family, who owned the land that was the longtime former site of Loftus Lumber.
“They had some concern whether we could actually perform as well,” Mr. Drown said, “but we were able to foster some relationships to build trust with the family, to show that we have the capacity to follow through.”
At the groundbreaking ceremony, Cedar Rapids city manager Jeff Pomeranz stressed the long-term collaboration between public and private entities that was needed to bring the complicated project to fruition.
“When I first moved to Cedar Rapids in 2010, I lived in Bottle Works, right across the street, so I know this property very,” Mr. Pomeranz said. “It was noisy, and I’d have to say, unattractive. It wasn’t something that we were proud of. For a number of years, the city council members and mayors and myself worked to try to attract a developer to take on Loftus, and there were a lot of starts and failures in those discussions, but it came down to Dave Drown. I really have ultimate respect for what Dave has done in taking on this very important and large project in Cedar Rapids.”
Mr. Pomeranz also thanked the state of Iowa, including Gov. Kim Reynolds and Iowa Economic Development Authority director Debi Durham, along with State Rep. Ashley Hinson, for their support.
“Success like this doesn’t happen by accident,” Mr. Pomeranz said. “This kind of commitment takes many partners. It’s the government, the private sector and the people that’ll live here and utilize the facilities that will make this a success.”
Cedar Rapids Mayor Tiffany O’Donnell praised the project as a “tremendous transformation” for the city “In the heart of a culturally diverse neighborhood that is a part of our origin story here.”
“It’s a perfect illustration of the type of project that we need to continue to move our city forward, enhancing the quality of life for our residents here, and continuing the momentum that we have in our core neighborhoods,” Ms. O’Donnell said. “We have a city council that’s really focused on infill in the heart of our city, and this is just the latest victory in that. It’s going to join several residential mixed-use and commercial developments that we have in the work enhancing street level pedestrian activity. We know that’s critical to attracting and supporting the small businesses and the tourism magnet that is a growing part of the (NewBo) district.”
Those developments include the Vesnice, a 75-unit, mixed-use project by High Properties at the corner of 16th Avenue and Second Street SE; the proposed Aloft Hotel by Marriott at the corner of 12th Avenue and Second Street; Sinclair on 16th, a 54-unit housing project at 705 16th St. SE; the NewBo Lofts at 455 16th Ave. SE; and the Fulton Lofts at 1220 Third St. SE.
Ms. O’Donnell also noted the NewBo Loftus project is a key part of the city’s 15-minute walkable-bikeable neighborhood promise as part of the city’s Climate Action Plan, and noted that the the New Bohemia revitalization “took flight” with the initial promise of a flood protection system for the east side of the Cedar River, “followed by millions of dollars of reinvestment in the Czech Village and New Bohemia district.”
It also adds to the goals of the city’s public arts plan and Czech Village-NewBo area action plan, as the first new component of what will become the 10th Street Community Arts Trail, she said.
Ms. Reynolds also spoke at the groundbreaking, noting the project as a key example of downtown revitalization efforts.
“I was recently in town for IEDA’s annual downtown conference, where local developers, policy makers and citizens from across the state can pick up ideas and strategies for downtown revitalization,” she said. “And during my comments, I pointed out how Cedar Rapids was an ideal host city, a kind of living laboratory bursting with truly great ideas, a place where the potential of downtown development is on full display everywhere that you look. And today, honestly, is a perfect example of what I had in mind.
“You guys are doing something right over here,” she added, referring to Cedar Rapids. “It’s impressive enough to reclaim a blighted site by adding over 180 market rate apartments, complete with rooftop terrace and other amenities. But to do it in a booming downtown district like NewBo, where people can live near the places that they work and socialize, is truly a game changer.”
Public-private partnerships like NewBo Loftus, she said, are “allowing us to turn a historic $500 million housing investment through the state into 5,000 publicly supported units currently under construction all across the state of Iowa. And I’m proud to say that’s the most in Iowa’s history.”
Funding for the project came from a variety of sources, including a $2 million Workforce Housing Tax Credit, brownfield and grayfield tax incentives, TIF district funding and financial assistance from Cedar Rapids Bank & Trust and Community Savings Bank.
“Without those (funding sources), the economics just don’t work,” Mr. Drown said. “The cost of construction is too high, interest rates are too high, and you can’t raise your rents accordingly.”
Mr. Drown also said it was important to maintain the O’Connell family’s legacy with the site by retaining the Loftus name in the development’s moniker.
The NewBo Loftus project is expected to be completed by November 2025.
