UPDATED with new comments: After years of starts and stops, a pair of redevelopment projects are set to finally transform the former Transamerica site in northeast Cedar Rapids.
EOP Development LLC has unveiled plans for a $70 million commercial development along the eastern and southern portion of the site at 4333 Edgewood Rd. NE, at the intersection of Edgewood Road and 42nd Street NE.
That development would encompass about 30 acres of the 50-acre site.
The other 20 acres, on the western portion of the site, will be the future home of Cedar Rapids Prep, a new tuition-free public charter school set to open this fall.
The former Transamerica site has sat essentially vacant since 2016, when Transamerica moved its operations to a new campus on C Street SW. Two buildings on the southern portion of the site were heavily damaged in the 2020 derecho and were subsequently demolished in 2021, but two large, modern office buildings on the northern portion of the site are still standing and will be renovated as part of EOP Development’s plans.
At that meeting, the council approved a package of standard economic incentives for the EOP Development project. That package will provide a 10-year, 50% rebate of increased taxes generated by the project. Based on the investment and estimated post-development value, the project is expected to generate $26 million in total taxes over a 10-year period, of which $10 million would be rebated back to the developer, according to city council documents.
The EOP Development project and the charter school are two separate projects, city officials clarified at a Cedar Rapids city council meeting Tuesday. Cedar Rapids Prep, the private charter school, will receive no incentives from the city, officials said.
Under plans discussed by the council Tuesday, EOP Development will develop a series of 11 commercial lots along Edgewood Road and 42nd Street NE and a portion of 42nd Street NE. A preliminary rendering unveiled Tuesday showed most of the lots will range in size from 2,500 to 3,500 square feet. Some of the lots have been labeled as “fast food,” while a larger lot on the southeast corner of the project is labeled as a “gas station.” Two other larger lots at the northern portion of the development include a 15,000-square-foot building and another parcel near the two office towers labeled as a “hotel.”
Specific development plans for the project, including possible tenants, haven’t yet been announced.
The project is expected to create 100 new jobs and retain 40 jobs, according to council documents.
The developer will build public streets within the development, and will dedicate those streets to the city once construction is complete. The developer will also be required to complete a study detailing the project’s impacts on traffic volume and patterns in the area, to determine if road infrastructure upgrades are needed.
Cedar Rapids economic development coordinator Scott Mather said a seven-acre grove of trees on the western portion of the site will be preserved under the development plans, assuaging concerns from some residents that the grove of trees could be leveled.
“They (the school) actually want to maintain it and use it for an educational opportunity for students,” Mr. Mather said.
Bill Micheel, the city’s economic and development services director, also noted that developers are required to comply with the city’s post-derecho ReLeaf program, which includes a requirement that for every tree removed as part of a redevelopment project, developers must replace a comparable tree, on-site or elsewhere in the city, at a cost of up to $750 per tree.
“We did a rough estimate of what it would cost to replace these trees if it were just flattened, and it is approaching $2 million,” Mr. Micheel said. “That really does become cost prohibitive in a pro forma for development. It is an adjustment, but it certainly does protect existing trees as a result.”
Construction of the EOP Development project is expected to begin in May and be completed by May 2031, according to council documents.
A formal development agreement for the project will be brought back to the council later this spring, Mr. Mather said.
Four people addressed the project in public comments, including Jeff Beer, who owns The Pines Pizza and Pub restaurant in the River Ridge development along 42nd Street NE, just east of the Transamerica site.
Mr. Beer said the development incentives offered by the city occasionally have unintended consequences, and in this case, are unneeded because the developer’s plans are already clear.
“I’ve watched the River Ridge area slowly diminish every year as more and more businesses are transferring from River Ridge to the Fountains specifically for the tax benefits,” Mr. Beer said. “I understand the benefits of doing tax benefits … when it’s a big business that doesn’t have a competitor. You have an investor that dropped $7 million plus into this without any tax breaks. They’re building on this site. They’re not buying it and looking at it. So what we’re doing, after the fact, is we’re packaging something and taking property tax dollars that, frankly, I’m paying to subsidize their building out of a project they were going to build out anyway.”
Councilmember Marty Hoeger also raised a question regarding TIF incentives based on job creation estimates, and how estimates of new and existing jobs are determined in order to qualify for those incentives.
“With these master plan redevelopments, they’re difficult to nail down an exact number (of jobs), because as was stated earlier, and really is typical of all of the master plan redevelopments we’ve had in the city, you don’t often know most of the users up front,” Mr. Mather responded. “There’s this intent from a developer who wants to know that there’s an assurance that the city is going to support a program or a project before they move forward and spend money on infrastructure and other types of investment … what we know is that there will be these job opportunities at this location. (We don’t know) to what extent, and it may be 200 jobs at the end of the day, but we’re going to certainly have a threshold that we’re going to set as a minimum in order to receive the incentives.”
Responding to questions about incentives, councilmember Dale Todd noted that the former Transamerica site has been vacant for several years, and responded to concerns that the project was being pursued by an out-of-state developer.
“A project similar to this in a lot of communities would get a 20-year tax rebate, because, based on the infrastructure the buildings, if he had demolition involved, you’re running into some significant cost,” he said. “I would point out, too in terms of the comments about out-of-state developers – we did have an in state developer. Actually, we had a developer in Cedar Rapids, and I think that was somewhat of a missed opportunity.”
The EOP Development Group plan, led by representative Kerry Panozzo, is the latest in a series of efforts to redevelop the former Transamerica site.
The property was previously 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.
A preliminary plan unveiled last year showed a mix of commercial and residential developments on the site. The new plan includes no residential elements.
And neighbors around the site have expressed concerns about traffic, possible tree removal and other issues on several occasions as the various development proposals have surfaced. A Facebook group called “42nd and Edgewood Save Our Neighborhood” had 281 members when last checked Tuesday.
New charter school coming this fall
Concurrently, Cedar Rapids Prep, the public charter school, is set to open in the fall, “providing an innovative educational opportunity for local students focusing on academic excellence and a college prep experience,” according to a release.
The new school will launch with two grade levels – sixth and seventh grades – with 150 students in each grade. The enrollment window for the school is now open, and applications are being accepted through March 31, 2025, or until spots are filled.
Cedar Rapids Prep is part of Opportunity Education Network, a nonprofit foundation founded by Joe Ricketts, founder and CEO of Ameritrade, that has supported student learning for 20 years. The foundation has existing schools in Omaha, Des Moines and Santa Rosa, California.
Opportunity Education Network schools are “high-performing independent and charter schools focused on active and engaged learning,” according to a release.
“Cedar Rapids Prep will provide a college-prep, private school feel at no cost to families,” said Justin Blietz, an experienced local educator and the school’s founding leader and principal. “We believe students learn best when they feel seen, heard, and valued. By maintaining a small school environment, we can build strong relationships with students and families while upholding high expectations that promote excellence and provide a premier college prep experience.
Under the Opportunity Education Network model, students are paired with advisors to provide guidance throughout their school experience. The college prep-focused curriculum includes a framework to ensure each student will have at least two acceptance letters to best-fit colleges before graduation.
“We know that some students may ultimately select a path other than college, but we believe all students should have the education that prepares them to go if they choose,” said Mr. Blietz.
The school will initially be located in the former Transamerica office building at 4515 North River Boulevard NE. The building is currently undergoing extensive renovations, which are scheduled to be completed before the August 2025 opening date.
Construction of a new building and expansive campus will begin on the adjacent 19-acre lot in the spring.
