The Iowa City Council will consider three development proposals, each of which would include commercial, residential and office space, for the vacant downtown lot at 21 S. Linn Street.
The city bought the property in the summer of 2023 for $4.5 million, so it would have control of a key site and be able to align its development with the needs of downtown.
Previously, a developer had planned to build student housing at the site, but that fell through. Before that, the property housed a U.S. Bank drive-through.
“We decided to go out and purchase this property ... with the intention to guide the project to a stronger use than what we felt the market was going to produce on its own,” City Manager Geoff Fruin said at a city council meeting this week.
Last year, the city conducted public input sessions and surveyed the community to gather public opinion on what should be done with the lot. The results of more than 6,000 responses from about 1,800 respondents showed residents most wanted to see the property used for green space, affordable housing, market-like retail spaces, or mixed-use development.
Based on those responses, the city issued a request for proposals for the property. In the request, the city asked that if office space was proposed, developers consider the possibility of the city owning or leasing upper floor office space. However, the proposal also stated that city office space is not a “preference or requirement” of the project.
Grand Rail Development, in partnership with OPN Architects and Urban Acres Real Estate, proposed a mid-rise six-story building.
The first floor would provide 6,300 square feet of entertainment space, though the development team also is open to dividing the space among potential restaurant or retail options.
Two upper floors would offer 20 residential units — 16 at market rent and four reserved for affordable housing. The Housing Fellowship — a nonprofit housing management organization that provides affordable rentals in Johnson County — has submitted a letter indicating it is interested in owning and managing the units.
The remaining three floors would be reserved for market rate office space. OPN Architects and ACT have expressed interest in the space. The development team also is willing to work with the city on acquiring office space for its operations.
The development team has proposed a $3 million land purchase price and its proposal does not include a request for tax increment financing incentives. City staff estimated the project could have a total valuation of $21.5 million.
Iceberg Development’s proposal is a 13-story building anchored by low-income senior housing units.
The proposal suggests a first floor that includes three “micro-retail” spaces — at 600-700 square feet each — and 3,800 square feet for a restaurant, retail or entertainment space.
Five of the upper floors would be for commercial office space, with room for the city or others. ACT has expressed interest in the space.
The remaining eight floors would include 76 units, a mix of one- and two-bedrooms. The units would be intended for senior housing for residents who make 40 perfect to 80 percent of the area median income. Half the units would be set aside for those making less than 60 percent of the area median income.
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The developers said they would intend to use low-income housing tax credits to leverage the housing units. That would guarantee a minimum 30-year, low-income affordability period.
However, construction could be delayed as the development team would not be able to apply for the Iowa Finance Authority’s competitive tax credit program until the 2026 round of funding, since the 2025 deadline has passed. There also is no guarantee the credit would be awarded.
The developer proposes purchasing the land for $2 million, and the project likely would use some tax increment financing incentives for 8-12 years. City staff estimate the finished development would be worth approximately $24 million.
The Salida Partners proposal calls for a 10-story building.
The first floor would have kitchen space and a flexible community room as well as an entertainment venue to be managed by the Englert Theatre. There also would be an entrance to an upper level “Stories Project” Museum, a concept for an interactive museum that celebrates storytelling.
Floors 2-5 would have space for the museum, a small art gallery and commercial office space.
The remaining upper level floors would be residential. There would be 16 market-rate senior housing units, six units for affordable housing (possibly to be managed by the Housing Fellowship), 10 market-rate units and 14 short term stay units that could be used by the University of Iowa’s International Writing Program.
Plans also outline the possibility of a rooftop patio area.
The land would be purchased for just $1 and likely would need tax increment financing help for 15-20 years.
City staff gave the project a total valuation of $37 million. City staff, however, said they are concerned about the financial feasibility of the project due to the non-market rate components. Staff advised the council not to consider it further.
However, the city council decided to move forward with hearing from the development team members to give them a chance to further explain their vision.
The Englert Theatre has expressed interest in part of a potential development at the property to create a 200-300 capacity entertainment venue with restaurant service to replace The Mill, a former restaurant and bar in Iowa City.
The “Stories Project” Museum estimates it would need 30,000 square feet of space and that is also would need to raise $9 million to start the museum. The museum also would have an additional estimated annual operating cost of $2 million for the first five years.
The city anticipates there may be requests for financial help from both the Englert Theatre project and “Stories Project” Museum that could come in the form of below market rents or build out help.
All three development teams will engage in presentations to the city council. There also will be an opportunity for public input before the council selects a preferred option. The presentations will take place at an upcoming city council work session, at a date that will be finalized once development team availability is confirmed.
After that, city staff will work with a third-party consultant to facilitate a potential land purchase and development agreement. There is no definitive timeline as to when a final proposal will be selected.
“All the teams are indicating some level of flexibility, and it is an opportunity for you to see these and react in ways that can more clearly express where your strongest priorities are,” said Fruin. “... We would work with that team to try to make sure that we can meet those top priorities for you while still producing a viable project for the team as well.”
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The city bought the property in the summer of 2023 for $4.5 million, so it would have control of a key site and be able to align its development with the needs of downtown.
Previously, a developer had planned to build student housing at the site, but that fell through. Before that, the property housed a U.S. Bank drive-through.
“We decided to go out and purchase this property ... with the intention to guide the project to a stronger use than what we felt the market was going to produce on its own,” City Manager Geoff Fruin said at a city council meeting this week.
Last year, the city conducted public input sessions and surveyed the community to gather public opinion on what should be done with the lot. The results of more than 6,000 responses from about 1,800 respondents showed residents most wanted to see the property used for green space, affordable housing, market-like retail spaces, or mixed-use development.
Based on those responses, the city issued a request for proposals for the property. In the request, the city asked that if office space was proposed, developers consider the possibility of the city owning or leasing upper floor office space. However, the proposal also stated that city office space is not a “preference or requirement” of the project.
Grand Rail Development proposes mid-rise of retail space, housing
Grand Rail Development, in partnership with OPN Architects and Urban Acres Real Estate, proposed a mid-rise six-story building.
The first floor would provide 6,300 square feet of entertainment space, though the development team also is open to dividing the space among potential restaurant or retail options.
Two upper floors would offer 20 residential units — 16 at market rent and four reserved for affordable housing. The Housing Fellowship — a nonprofit housing management organization that provides affordable rentals in Johnson County — has submitted a letter indicating it is interested in owning and managing the units.
The remaining three floors would be reserved for market rate office space. OPN Architects and ACT have expressed interest in the space. The development team also is willing to work with the city on acquiring office space for its operations.
The development team has proposed a $3 million land purchase price and its proposal does not include a request for tax increment financing incentives. City staff estimated the project could have a total valuation of $21.5 million.
Iceberg Development would build 13-story building with senior housing
Iceberg Development’s proposal is a 13-story building anchored by low-income senior housing units.
The proposal suggests a first floor that includes three “micro-retail” spaces — at 600-700 square feet each — and 3,800 square feet for a restaurant, retail or entertainment space.
Five of the upper floors would be for commercial office space, with room for the city or others. ACT has expressed interest in the space.
The remaining eight floors would include 76 units, a mix of one- and two-bedrooms. The units would be intended for senior housing for residents who make 40 perfect to 80 percent of the area median income. Half the units would be set aside for those making less than 60 percent of the area median income.
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The developers said they would intend to use low-income housing tax credits to leverage the housing units. That would guarantee a minimum 30-year, low-income affordability period.
However, construction could be delayed as the development team would not be able to apply for the Iowa Finance Authority’s competitive tax credit program until the 2026 round of funding, since the 2025 deadline has passed. There also is no guarantee the credit would be awarded.
The developer proposes purchasing the land for $2 million, and the project likely would use some tax increment financing incentives for 8-12 years. City staff estimate the finished development would be worth approximately $24 million.
Salida Partners proposes 10-story building with a museum
rs)The Salida Partners proposal calls for a 10-story building.
The first floor would have kitchen space and a flexible community room as well as an entertainment venue to be managed by the Englert Theatre. There also would be an entrance to an upper level “Stories Project” Museum, a concept for an interactive museum that celebrates storytelling.
Floors 2-5 would have space for the museum, a small art gallery and commercial office space.
The remaining upper level floors would be residential. There would be 16 market-rate senior housing units, six units for affordable housing (possibly to be managed by the Housing Fellowship), 10 market-rate units and 14 short term stay units that could be used by the University of Iowa’s International Writing Program.
Plans also outline the possibility of a rooftop patio area.
The land would be purchased for just $1 and likely would need tax increment financing help for 15-20 years.
City staff gave the project a total valuation of $37 million. City staff, however, said they are concerned about the financial feasibility of the project due to the non-market rate components. Staff advised the council not to consider it further.
However, the city council decided to move forward with hearing from the development team members to give them a chance to further explain their vision.
Englert Theatre and Stories Museum
The Englert Theatre has expressed interest in part of a potential development at the property to create a 200-300 capacity entertainment venue with restaurant service to replace The Mill, a former restaurant and bar in Iowa City.
The “Stories Project” Museum estimates it would need 30,000 square feet of space and that is also would need to raise $9 million to start the museum. The museum also would have an additional estimated annual operating cost of $2 million for the first five years.
The city anticipates there may be requests for financial help from both the Englert Theatre project and “Stories Project” Museum that could come in the form of below market rents or build out help.
Development team presentations, next steps
All three development teams will engage in presentations to the city council. There also will be an opportunity for public input before the council selects a preferred option. The presentations will take place at an upcoming city council work session, at a date that will be finalized once development team availability is confirmed.
After that, city staff will work with a third-party consultant to facilitate a potential land purchase and development agreement. There is no definitive timeline as to when a final proposal will be selected.
“All the teams are indicating some level of flexibility, and it is an opportunity for you to see these and react in ways that can more clearly express where your strongest priorities are,” said Fruin. “... We would work with that team to try to make sure that we can meet those top priorities for you while still producing a viable project for the team as well.”
Iowa City Council to review development proposals for downtown lot
Three developers have proposed mixed-use projects on the property. All would include commercial space and housing. One proposal also would include an entertainment venue and a museum that celebrates storytelling.
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