The North Liberty City Council approved a request for $20 million from the city to help fund a new development district between Highway 965/Ranshaw Way, West Cherry Street, and West Zeller Street.
Dubbed the Urban Central District, Lion Development Group Owner Brandon Pratt presented the project to the council during its meeting March 11.
Once complete, the Urban Central District will feature a 65,000-square-foot mix of commercial, medical, and office buildings, as well as more than 350 Class A apartments across six separate residential buildings.
In partnership with the Nimble Collective — owned by Jeff Schweitzer — Lion Development has already purchased or entered into purchase agreements on 15 parcels of property within the district over the last 12 months. The area was identified by Greater Iowa City as a strategic investment district in December 2024.
“The 20 acres set to become the UC district has sat as it is, undeveloped, for up to 40 years for the sheer reason that it is economically not feasible to develop these parcels without a significant public-private partnership,” Mr. Pratt said during his presentation to the council.
He noted the reasoning for the high pricetag — the largest sum of money toward an economic development plan in North Liberty history — stems from complications with the land itself and the relocation of existing buildings.
He listed the following complications that justified investment from the city in addition to Lion Development’s partnership:
- Demolishing and removing 12 industrial warehouse buildings that total about 96,000 square feet
- Mitigating 130,000 square feet of flood ground area
- Installing 300 feet of box culverts to mitigate water runoff heading north to Liberty Center Lake
- Navigating railroad tracks to the east
- Working around a blue line stream governed by the Department of Natural Resources, which runs directly through the development district
- Working around up to nine feet of elevation change that requires importing materials and maneuvering unsuitable soils throughout the property
“Acquisition and horizontal development costs are budgeted at approximately $27 million from a square foot standpoint, that amount equals a cost basis of over $30 per square foot,” Mr. Pratt said.
He noted that recent comparables list multi-family residential grounds selling for about $4 per square foot, while commercial ground sells for $6-14 per square foot. Lion Development anticipates that total vertical construction costs for the Urban Central District will exceed $100 million.
However, Mr. Pratt said they are already in talks with several national tenants that are interested in opening storefronts along Highway 965/Ranshaw Way. He emphasized that the geographical location of the district will make it a central hub for North Liberty’s commercial corridor, making it easier to achieve a good ROI.
“The UC district is literally in the heart of our great community. Almost all major restaurants and retail pockets inside of North Liberty are within walking distance or a short, short bike ride,” Mr. Pratt said. “Our intent is to build something different, encompassing unique textures and art throughout the district.”
One feature that will make the district that much more accessible is the North Ridge Trail, which runs north-south through the area. As shown in conceptual drawings presented to the council, the Urban Central District will be a walkable mixture of residential and commercial.
However, as Mr. Pratt noted, North Liberty is also becoming a destination for medical institutions, with the new University of Iowa Health Care campus and Steindler Orthopedic buildings both scheduled to open this spring. He said they are in the final stages of a development agreement to bring another medical facility into the district to act as an anchor for the commercial portion.
For the residential portion of the project, Mr. Pratt said each building will have up to five floors of multi-family housing, with under-structure covered parking below. There will be a mix of studios, one-bedroom, two-bedroom, and three-bedroom units, with plans to feature a host of amenities for tenants.
“These units are intended to be some of the most premier apartments in the area,” Mr. Pratt said. “The goal of the UC district is to bring in a more urban engagement and vision for those that both choose to visit and or live inside the district, but also creating this in a unique, different and fun way.”
Though no solid timeline exists yet, Mr. Pratt estimated that the residential buildings would be ready for use within five to seven years, but that the commercial would be ready before then. After the presentation, the council participated in a question and answer session between Mr. Pratt and City Administrator Ryan Heiar.
City Councilor Brent Smith inquired about the possibility of acquiring grant funding from the state to alleviate any of the cost — which Mr. Heiar said was unlikely.
“We’ve looked at a number of alternatives, and there frankly isn’t much out there,” Mr. Heiar said. “There is a great deal of dollars that would be directly available to the developer….but it’s significant in terms of probably more than $100,000, but not close enough to what is needed.”
However, Mr. Heiar did note that once the project begins, the district will be designated a blighted area, which will allow the city to collect additional Tax Increment Financing (TIF) for longer than a standard TIF district. TIF is a property tax capture revenue tool that can help cities pay for new infrastructure or development improvements.
“I think the ask for our partnership here is really purely to invest in the site itself and to bring it up from what is a gray field to a workable development to get it working,” Mr. Smith said after the question session. “I don’t see it isn’t a significant ask, but I don’t see that it’s out of the realm of possibilities, because if we wait another 40 years to develop it, it only gets more expensive, and the money is going to have to be invested at some point anyway, to make it happen to be developed.”
The development request passed the council 4-0. City Councilor Erek Sittig abstained. Additional details about the development plans can be found in the information packet available on the North Liberty City Council website.
