Local developer Steve Emerson is seeking Cedar Rapids financial incentives to repurpose the former Principal building in downtown Cedar Rapids into a mix of commercial and residential spaces.
The city council is set to discuss the proposal at its meeting this afternoon.
According to city council documents, the proposal – with a projected investment of $16.3 million – would convert the former Principal building, at the corner of Second Avenue and Second Street SE, to 26 market-rate apartments on the building’s upper floors, with a mix of studio, one-bedroom and two-bedroom units. The main floor would be repurposed for commercial space.
The majority of the building has been vacant for a number of years, according to council documents, and the proposal is being pursued due to the “decrease in demand for commercial office space.”
Mr. Emerson is seeking a resolution of support authorizing financial incentives for the project under the city’s Targeted District – Economic Development program. Those incentives would provide a standard 10-year, 100% tax rebate for the project’s housing portion and a 10-year, 50% rebate for the commercial portion.
Based on the investment and post-development value, the project is expected to generate $2.4 million in total taxes over 10 years, with $1 million being rebated back to the developer.
Construction is set to begin this summer and be completed in the summer of 2027.
Mr. Emerson is also seeking state historic tax credits for the project, which would require the project to retain the historical features and architecture under the standards of the State Historical Preservation Office.
