Planning Commission OKs preliminary plat for former Transamerica site

Even as the Cedar Rapids City Planning Commission approved a preliminary plat for the redevelopment of the former Transamerica site in northeast Cedar Rapids April 4, commissioners sent a clear signal to developers: Tree mitigation, ample setbacks and lower building heights should be considered as the project moves forward. Commission chair Jim Halverson clarified throughout the meeting that the commission couldn’t consider formal restrictions on the zoning for the site, but after nearly 2 ½ hours of discussion, the commission voted 7-1 to approve the preliminary plat, with commissioner Bo Brock casting the lone dissenting vote. However, while not imposing formal conditions on the plan, the commission’s vote came with “recommendations” that the city council consider requiring the developer, Kerry Panozzo of EOP Development, to maintain most of the site’s current tree canopy, increase setbacks on the west side of the property and limit the maximum height of buildings in the development in order in order to be eligible for local economic development incentives. “To me, it's pretty clear,” commissioner Fred Timko said. “We can make conditions relative to a plat – move a street, put a cul de sac here, add sidewalks. (But) when we start getting into zoning conditions, I think that's where we begin to overstep our authority. I think that's what everybody intends and wants to do, but I don't think it's really our position to start changing setbacks and other conditions.” The preliminary plat for the project, prepared by Hall & Hall Engineers and submitted to Cedar Rapids planning officials Feb. 23, shows general plans for for what's now known as Edgewood Pointe, a mixed-use development on the 52-acre site, with commercial and retail development closer to Edgewood Road and 42nd Street and a mix of multi-family residential projects toward the western portion of the property. The zoning for the property – Suburban Mixed-Use Regional Center, or S-MR – was established when the zoning plan for the entire city was updated in 2019. A variety of development uses are permitted under that zoning designation, including education, health care, retail, restaurants, hotels, fueling stations, and vehicle sales and maintenance. Residential multi-family developments are also permitted, while single-family detached homes are not. However, the preliminary plat doesn’t include detailed development plans for the site, and Hall & Hall land planning division director Loren Hoffman stressed that while street construction and other preliminary site work on the project could begin as soon as this summer, there are no signed contracts for any individual development projects. More than 50 people attending the commission meeting, and nearly two dozen speakers commented on the preliminary plat, with many indicating their concerns about a lack of specific plans for the site.

Dave Watson of 4501 42nd St. NE, who’s organized a Facebook group called “42nd and Edgewood Save Our Neighborhood” for neighbors concerned about the project, said after attending an informational meeting hosted by the developers of the proposed project March 20, he’s no more informed about the plans than he was before the meeting. “There is no clear direction with this project,” Mr. Watson said. “Part 32.01 of the zoning code states the purpose is improving the public health, safety and general welfare of the people, and also states its purpose is to safeguard and enhance the property values and protect private and public investments. We understand that they will develop this property, but I beg the city to table this matter to gather more detailed information and a plan that has a proactive purpose inclusive of the residences impacted and considers the safety of our neighborhoods.” Drew Pierson of 4800 Morelle Rd. NE, just west of the proposed development, said he was unable to find comparable developments in Cedar Rapids that provided a gradual transition to a single-family neighborhood, as developers have indicated they’re planning in this case. “When the developer claims that they have as of yet no plan with the residential part of the plat and is seeking a blank slate, that's concerning,” Mr. Pierson said. “In 2019, our city manager said this land is a critical site for Cedar Rapids and that the city would collaborate with the new owner to ensure that its quality of development will benefit our city … I know something's going there, and I'm looking forward to it. But let's just be smart about this. We could have something great. Let's foster that as a community, rather than just giving some sort of blank check to do what they want and hope they do the right thing.” A more formal review of specific project plans would come when developers submit a formal development proposal for approval. No specific timeline has yet been established for that process. The site was largely vacated when Transamerica moved its Cedar Rapids operations to the former Hibu site in southwest Cedar Rapids, a process that began in 2016 and continued gradually for several years. A number of older office buildings on the property were demolished in 2021, but three structures remain, including a pair of 100,000-square-foot Class A office buildings, constructed in 1994, and a 14,000-square-foot former daycare facility. The two office buildings continue to be marketed for potential new occupants, with one firm – Regus – already occupying one floor of the western building. Tnd the former daycare facility on the could be either repurposed or replaced based on a developer’s wishes, representatives have said. The EOP Development group, represented by Mr. Panozzo, purchased the entire site in an online auction that closed in June 2022. After clearing escrow, the purchase was finalized in July 2022 for a total cost of $7.02 million, according to records from the Cedar Rapids Assessor’s Office. Since the sale, signs have been posted around the site indicating it’s available for redevelopment. The property was under contract to purchase on two occasions since Transamerica’s departure – first by Hunter Companies, then by Edgewood West, a group of local investors. The deals fell through on both occasions.