May 8, 2025 (Iowa City Press-Citizen) –
The city will move forward with
The initial Grand Rail proposal included a six-story building with two levels of housing and 20 units total. At a presentation earlier this year, Grand Rail said the design was inspired by the "history of
The initial development is expected to be valued at about
Four of the 20 included units would be designated as affordable housing under that proposal, though representatives for their development team have emphasized considerable flexibility to facilitate any number of desired spaces in the property, including additional floors dedicated to offices or housing.
In Grand Rail's plan, a 6,300 square foot ground floor would be used for "flex entertainment." That includes additional performance and stage space for the
Grand Rail's initial proposal did not require any city-backed tax increment funding and the group touted that they would be "ready on day one," once plans are finalized.
The development team is requesting to buy the
Why did the city decide to move forward with Grand Rail's proposal?
The council was initially considering two proposals for the future of 21 S. Linn. But, the joint venture submitted by
A letter to the city cited three reasons: Ongoing economic uncertainty, changes in the availability of tax credits central to the proposal and general challenges with the mixed-use design, including senior housing.
"As we have consistently expressed, our team is committed to pursuing projects only when we are confident in their long-term viability and, in this case, a purposeful community benefit," Iceberg's
The withdrawal set up two options for the council. They could proceed with Grand Rail's proposal or cancel the request for proposals altogether and start again with a new RFP. The council ultimately chose to move forward with Grand Rail's proposal.
What comes next at
There is still plenty of work ahead before the
Since the council committed to the Grand Rail proposal, staff will establish an agreement to sell the city-owned 21 S. Linn property to the developers.
City Manager
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