The developers of two buildings at 4700 Bowling St. in southwest Cedar Rapids are seeking a partial property tax exemption for the $4.7 million project.
The Cedar Rapids City Council on Tuesday set an Oct. 22 public hearing to consider a request by Bowling Street Flex-Space LLC for an urban revitalization area designation. The proposed buildings, which would total 77,000 square feet, would be constructed of concrete, steel and architectural metal panels.
Construction of the first building would begin this fall, with occupancy planned for the spring of 2014. The second building would be constructed when the first structure is substantially leased.
Bowling Street Flex-Space would purchase just more than six acres of land from The Gazette Co. for the development. The buildings would accommodate an estimated 77 employees, based on space of this type typically being home to one person per 1,000 square feet.
Bowling Street Flex-Space backers have declined to be identified, they said, for competitive reasons.
The partial property tax exemption would be a 10-year, declining scale exemption, averaging 44 percent per year. It would apply only to the increased property valuation generated by the new addition.
Based on the proposal submitted to the city by Bowling Street Flex-Space, the increased assessed value for the facility would be $3 million. That would generate an additional $110,000 in annual property tax revenue.
Over a 10-year period, $620,000 of additional tax revenue would be collected and $480,000 would be deferred as exempt.
A report prepared by the city’s Community Development department contends the buildings would attract out-of-town businesses that are “seeking a better image.”
Primus Construction of Cedar Rapids would be the contractor for the project.