Berthel Fisher to move headquarters from Marion to Cedar Rapids

CEDAR RAPIDS — The city of Cedar Rapids's latest economic-development incentive package will support the construction of a $12 million office building with retail and restaurant space and bring financial services firm Berthel Fisher and Co. and about 85 employees to Cedar Rapids from neighboring Marion.

City Manager Jeff Pomeranz said on Friday that the new building to be built at the southeast corner of 42nd Street NE and Edgewood Road NE, across 42nd Street NE from the Twin Pines Golf Course, will become the corporate headquarters of Berthel Fisher and at the same time will contribute to the growth of the corporate and commercial corridor that features the Transamerica campus and the new office-commercial development, The Fountains.

'It's very positive for the city. Berthel Fisher is an excellent company that serves clients throughout the nation,' Pomeranz said.

At the City Council meeting on Tuesday, Pomeranz will ask the council to approve a five-year, 100-percent property-tax break on the new investment, a tax increment financing or TIF incentive which he said is in accord with the city's 'standard' incentive program approved and published by the City Council in July.

The Berthel Fisher project is considered a 'targeted development' project and one that offers additional 'community benefit' because the new building will feature not only high-end, 'Class A' office space, but space for retail businesses and a restaurant, the city manager said.

The city estimates that the incentive package will save the development $1.596 million in property taxes over five years, but the project is expected to generate $4.788 million in new property taxes in the 15 years after the five-year incentive period ends, according to the city's figures.

'It's a short-term incentive, but a long-term financial win,' Pomeranz said.

Pomeranz said on Friday that the city has notified the city of Marion, as required by the 'fair-play' agreement between the cities, that Berthel Fisher & Company will leave its location in Marion off Highway 100 to move to the new spot in Cedar Rapids.

Marion City Manager Lon Pluckhahn said on Friday that Pomeranz had called him.

'The incentives being offered are within the terms of the agreement,' Pluckhahn said.

Pomeranz said the Cedar Rapids City Council adopted specific incentive guidelines for specific kinds of developments to inform developers, businesses and neighboring cities that the city had a standard policy, and not one that would change in an effort to lure businesses from neighboring communities.

'The fair-play agreement attempts to limit incentives when companies move throughout the metro area,' Pomeranz said. 'We published our plan and our policy, and we're staying within that published plan rather than throwing anything at employers to entice them into Cedar Rapids.'

He said Berthel Fisher has been looking to move within the metro area for about two years, and he said every city in the area and most commercial Realtors have been aware of it. The move from Marion to Cedar Rapids isn't a surprise, Pomeranz said.

Hunter Companies of Cedar Rapids will build the building, which will consist of 36,000 square feet of office space for Berthel Fisher and another 31,000 square feet of space.

Greg Swartzendruber, director of business development for Hunter Companies Inc., on Friday said the company was ready to move on construction as soon as it and Berthel Fisher learn on Tuesday if the City Council approves the incentive package for the project.

He and Pomeranz said Berthel Fisher would comment once it knows what the council does.