A redevelopment plan for the former site of the Marion Public Library is officially moving forward.
The Marion City Council approved a development agreement Thursday, March 5 for the site at 1095 Sixth Ave., which city leaders see as a critical component of the overall development of Uptown Marion.
The mixed-use project, with a proposed investment of $18 million, includes a 12,000-square-foot, single-story retail space with rooftop patio access, a three-story multifamily building with 63 apartment units, 68 indoor parking spaces for residents and 63 surface parking spots, which would be shared between residents and businesses.
The Kilbourne Group of Fargo, North Dakota, which will serve as developer, and Dubuque-based Gronen, which will serve as general contractor, are collaborating on the proposal, which was first announced by Marion city leaders in February 2025.
The project was outlined by Kilbourne Group president Mike Allmendinger during a September 2025 luncheon hosted by the Marion Economic Development Corporation (MEDCO) as part of the annual MEDCO bus tour of Marion developments.
Appearing virtually at Thursday’s Marion City Council meeting, Mr. Allmendinger said the development group is fully aware of the demand for parking in Uptown Marion.
“It’s going to be really important that we manage parking in a very vibrant Uptown district,” Mr. Allmendinger said. “We know that there’s parking demand. We have talked to other community members about this, and we’ve learned about the Partners in Parking program and (other) ways this project can support the overall district’s need for parking. We want to make sure we’re a good partner in that.”
The project includes several development incentives from the city. Among them:
- The developer will acquire the property for $1.
- The city will provide an Economic Development Grant capped at $1 million and contingent on the developer’s receipt of state tax credits. If the developer receives less than $1.5 million in combined Workforce and Grayfield Housing tax credits, the city will bridge the gap up to the $1 million cap.
- A 20-year, 100% rebate of increased property taxes generated by the project, not to exceed $6.64 million.
According to council documents, the project “aims to create a mixed-use anchor for Uptown Marion that ‘closes the retail loop’ near the new library and Central Plaza.”
Developers are expected to apply for state tax credits by this summer, and Mr. Allmendinger said he hopes to break ground by the end of 2026, with a projected construction timetable of 15 to 18 months.
Mr. Allmendinger has previously said developers hope the retail and restaurant portions of the project can be filled with locally-owned businesses as opposed to national retailers.
Mr. Allmendinger said the project’s market-rate apartments would likely be offered at “a higher rent” than other properties in Marion, “but I’d say a little under what you’re seeing in the downtown Cedar Rapids area.”
City leaders said in February 2025 that the project aims to enhance the corridor between the Shops at West End and the Uptown District, supporting local businesses and contributing to a more dynamic, walkable district.
The Marion Public Library formerly located at the site, located along Sixth Avenue between 10th and 11th streets, was heavily damaged in the 2020 derecho and was subsequently demolished in 2023. A new public library just to the east, at 1101 Sixth Ave., opened to the public in November 2022.
In 2023, the city of Marion, jointly with the Marion Chamber, Uptown Marion District and MEDCO, issued a request for proposals seeking a mix of commercial and residential offerings for the former library site.
