Downtown Cedar Rapids development 2016 (Emerson: sale, 2014, insurance)

[smpliving]

Cedar Rapids continues to reshape its downtown and adjacent New Bohemia with mix use residential/retail developments, downtown park revitalization, and businesses. Below is a list of the various projects underway.


5 projects that will reshape Cedar Rapids in 2016 - OPN Architects

Cedar Rapids eyes project that would rise from downtown parking lot | The Gazette

Smulekoff's Building in Cedar Rapids Sold

https://www.google.com/search?q=gree...HSidDXIQsAQIPg

[DrEilers]

This actually all looks great, but what's up with the city buying the Smulekoff's building for 4.7 million and selling it a year later for 400k?

[smpliving]

Originally Posted by DrEilers

This actually all looks great, but what's up with the city buying the Smulekoff's building for 4.7 million and selling it a year later for 400k?

City okays sale of Smulekoff's building | The Gazette


"City officials acknowledged the wide gap between the purchase price in 2014 and the sale price now — a $4.3 million loss — would raise questions. The sale price was assessed based on a “fair market value” of $2 million, but the value dropped significantly due to restrictions on the property.


The city is requiring the parking lot and a portion of the property along the river side be deeded back to the city, Emerson’s company remove the rear loading dock, and no private access is provided to the rear of building.
The city needs land to eventually erect a removable flood wall as part of an east-bank flood protection system.
Also, the building will need to be listed on the National Register of Historic Places within one year, flood insurance will be required and utilities must be moved from the basement to somewhere higher in the building.


“The value was reduced because of some of the conditions of the sale,” Pratt said. “We had the appraisal reviewed and they supported the initial appraisal, and those were done by licensed and certified appraisers.”


The city purchased the building through the voluntary acquisition program, which allowed the property to be valued based on pre-flood conditions. The pre-flood value was much higher than when the building was purchased because it included a long-standing employer, she noted.
The city will have to return the $415,000 sale price to the federal program that helped pay for the acquisition.


City officials were optimistic about what this project means for the post-flood rejuvenation of downtown. Populating a vacant building will be a benefit to downtown, and after Emerson’s investment the eventual property value will be $6 million, Pratt said."

[atler8]

Originally Posted by rigizug

City okays sale of Smulekoff's building | The Gazette


"City officials acknowledged the wide gap between the purchase price in 2014 and the sale price now — a $4.3 million loss — would raise questions. The sale price was assessed based on a “fair market value” of $2 million, but the value dropped significantly due to restrictions on the property.


The city is requiring the parking lot and a portion of the property along the river side be deeded back to the city, Emerson’s company remove the rear loading dock, and no private access is provided to the rear of building.
The city needs land to eventually erect a removable flood wall as part of an east-bank flood protection system.
Also, the building will need to be listed on the National Register of Historic Places within one year, flood insurance will be required and utilities must be moved from the basement to somewhere higher in the building.


“The value was reduced because of some of the conditions of the sale,” Pratt said. “We had the appraisal reviewed and they supported the initial appraisal, and those were done by licensed and certified appraisers.”


The city purchased the building through the voluntary acquisition program, which allowed the property to be valued based on pre-flood conditions. The pre-flood value was much higher than when the building was purchased because it included a long-standing employer, she noted.
The city will have to return the $415,000 sale price to the federal program that helped pay for the acquisition.


City officials were optimistic about what this project means for the post-flood rejuvenation of downtown. Populating a vacant building will be a benefit to downtown, and after Emerson’s investment the eventual property value will be $6 million, Pratt said."

That was an excellent article to link here that answered the earlier posted question & gave insight to some of the myriad considerations that go into the resale or redevelopment of properties in urban core areas.

[tfbns]

Here is another project

28-story high rise proposed in downtown Cedar Rapids | The Gazette