A new 92-unit apartment housing complex is in the works at a highly-visible site near the intersection of Highway 30 and Williams Boulevard SW in Cedar Rapids, despite concerns voiced by some area residents about increased traffic and impact on nearby property values.
The Cedar Rapids City Council voted unanimously May 13 to approve a zoning change for the $14.5 million project, which will include construction of two 46-unit market-rate apartment buildings at 3445 and 3355 Stone Creek Circle SW.
The buildings are set to include a mix of one- and two-bedroom units, as well as an on-site management office, fitness center, community center and dog park.
The council also voted unanimously to support an application for workforce housing tax credits for the project by the developer, Talon Development of Sioux Falls, S.D.
The project also qualifies for standard city development incentives of a 100% exemption of increased value in taxes generated. The project is expected to generate $2.2 in total taxes over 10 years, with $1.2 million being exempted.
Bob Smith, Talon’s vice president of development, said the company hopes to break ground on the project in October, with completion by April 2027.
Several commenters at recent council meetings have said they’re concerned about higher traffic counts with the new units.
Bill Hopp, treasurer of the board of directors of the neighboring Prairie Gardens Cooperative, an affordable housing complex for seniors, presented a petition to the council earlier this month opposing the development.
Mr. Hopp said he felt the new development could lower property values in the area, and proposed the council consider creating an escrow account “which would protect shareholders in the event this project would result in share devaluation or stoppage of sales” at Prairie Gardens.
The escrow account would be funded by real estate taxes from Prairie Gardens residents, and if there were “no problems with the project,” the funds would be transferred back to the city, Mr. Hopp said.
Mayor Tiffany O’Donnell asked Cedar Rapids economic development coordinator to investigate the idea of an escrow account. “I don’t know if we’ve ever done this before, if it’s even possible,” she said, “but I appreciate the creativity. So if there’s just an opportunity for conversation, I would appreciate that.”
Mr. Mather said he had asked the Cedar Rapids City Assessor’s office if any previous multi-family housing projects had negatively impacted property values, and was told “there have not been any.”
Mr. Hopp also asked that to address traffic concerns, the city consider adding a four-way stop at the intersection of Dean Road and Stone Creek Circle, just west of the new development, and that the speed limit along Williams Boulevard near Highway 30 be lowered to 45 miles per hour.
City council member Ashley Vanorny said the development will help address an acute and ongoing workforce housing shortage, citing the August 2024 Maxfield study that identified a potential demand for 4,798 new general occupancy and 2,111 age-restricted and service-enriched housing units in Cedar Rapids between 2024 and 2030.
“There’s always this concept of how much is enough housing,” Ms. Vanorny said. “And the reality is, we don’t have enough.”
The council also approved a development agreement with DC Taylor for the construction of a new commercial headquarters at 12th Street and 29th Avenue SW. The roofing contractor plans to build a new 33,200-square-foot building, including a 9,460-square-foot office space and a 23,740-square-foot warehouse, at a total cost of $6 million.
The project will retain 75 local jobs.
The standard incentive provides 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 $1.1 million in total taxes over a 10-year period, of which $460,000 would be rebated back to the company, according to council documents.
