A new mixed-use development is taking shape in the New Bohemia district in southeast Cedar Rapids, according to a proposal approved unanimously by the Cedar Rapids City Council at its regular Tuesday.
The proposal, submitted by the Watts Group, includes a four-story building named Gateway Lofts on a city-owned vacant lot at the intersection of Fourth Street and 17th Avenue SE, just northeast of Tornado’s Grub & Pub and south of the NewBo Lofts housing development, also developed by Watts Group.
Plans for the project include 66 one- and two-bedroom units, along with 1,500 square feet of commercial space on the first floor. The residential units would front Fourth Street SE, with alley access and covered parking to the rear.
The Watts Group was the only developer to respond after the city issued a Request for Proposal (RFP) for the site in February.
The proposal was reviewed by a group composed of a SSMID representative, a non-competing developer and a commercial lending professional. That group recommended approval of the proposal.
City officials will now work with the Watts Group to negotiate a formal development agreement for the project, including the transfer of property ownership to the developer. That agreement will come before the council at a future meeting.
Council member Ann Poe said she appreciates that Mr. Watts has included interior murals in his previous development projects, and renderings show a similar mural in the Gateway Lofts project.
“Please continue to encourage that kind of out-of-the-box thinking,” Ms. Poe said. “Who would have thought about a mural inside of an entryway, but it’s really quite lovely.”
Also Tuesday, the council:
⦿ Approved the first reading of an urban revitalization area agreement for the former Garfield Elementary School building at 1201 Maplewood Dr. NE. Developer Evolution LC, an entity of developer Steve Emerson, purchased the former school in 2024 and is planning to redevelop the building into 30 market-rate rental units, including a mix of one- and two-bedroom units, as part of a $7 million total investment.
The urban revitalization agreement will establish a standard development incentive for the project, providing a 10-year, 100% exemption of increased value. Based on the investment and estimated post-development value, the project is expected to generate $665,000 in total taxes over a 10-year period, of which $240,000 would be exempted.
The project has already qualified for brownfield/grayfield tax credits, and Evolution LC is in the process of securing historic tax credits. Construction is expected to begin this spring and be completed by the end of the year.
⦿ Approved the first reading of a Mount Vernon Road SE Urban Revitalization Area, augmenting the already-existing Mount Vernon Road Corridor Action Plan, which was adopted as a part of EnvisionCR in January 2017. The new designation will provide eligible property owners an exemption of new value added as a result of the redevelopment of their property. The goal of creating the Urban Revitalization area is to stimulate redevelopment of underutilized properties, including vacant lots.
The incentive area covers Mount Vernon Road SE from 10th Street to 44th Street. A total of 87 properties are automatically eligible for the new development incentives, including 77 commercial properties, seven mixed-use properties and three multi-family developments.
“Since adoption of the Action Plan, redevelopment has been isolated and small-scale,” said Cedar Rapids Economic & Development Services Director Bill Micheel. “We all know that Mount Vernon Road is a major east-west thoroughfare, and traffic counts are very attractive, yet we’ve seen just a little bit of lag in development.”
