Cedar Rapids council approves rezoning for renovation of former Great Furniture Mart

Local developer Joe Ahmann said cleanup and interior demolition work is underway as he begins the renovation of the former Great Furniture Mart, the 100-year-old, four-story warehouse building on First Street SE in downtown Cedar Rapids.

The City Council this week approved a necessary change of zoning for the building to clear the way for the renovation project. The building, which was damaged in the flood of 2008, had been closed a few years before the flood.

Ahmann, president of Ahmann Companies, plans for offices and commercial businesses on the building's first two floors, five condominium residential units on the top two floors and 14 parking spaces in the building's basement.

In July, the City Council approved an economic development incentive for the Great Furniture Mart project in which the city will forego 100 percent the property tax on the value of the building improvements for 10 years. The city has estimated the tax break is worth $1.33 million in total. Ahmann will pay property taxes on the existing value of the building during that period.

Ahmann has said he will invest $5.3 million in the renovation of the shell of the building with an expected additional $2.7 million to be spent on improvements to the interior.

Ahmann on Wednesday said there is strong interest in the residential units planned for the building.

In his agreement with the city, Ahmann has agreed to to complete work on the shell of the building by Dec. 31, 2014, but on Wednesday, he said he expected the work to be done before then.