Iowa City takes next step in effort to develop area around former Sycamore Mall

IOWA CITY — Iowa City’s Planning and Zoning Commission has unanimously approved the creation of an urban renewal area that includes Iowa City Marketplace — the former Sycamore Mall — and the surrounding area.

The area has been identified as a strategic investment district, a hyper local effort led by Greater Iowa City Inc., meant to guide future economic development and place-making efforts in underutilized areas.

While there are no concrete development plans yet, the creation of the urban renewal area allows for potential public infrastructure upgrades and economic development incentives, such as tax increment financing.

“ … We're taking this as kind of a proactive step, it’s not what we typically do with urban renewal areas, but in this case, we wanted it to be in place and have the tool ready to use if the opportunity arises,” Rachel Kilburg Varley, Iowa City’s economic development coordinator, said at the Planning and Zoning Commission meeting last week. “It can take several months for these to kind of go through the whole process and so we wanted to kind of get out front and establish that so we can support any efforts that may come from it.”

The Iowa City Council must vote on adoption of the urban renewal area, after a public hearing is held. Individual development projects and any request for tax increment financing would still need to come before city council if an urban renewal area is created.

The city council’s next meeting is scheduled for Feb. 17.

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Strategic Investment District process

Greater Iowa City Inc. brought together property owners, urban planners and leaders within the public sector to develop plans targeted for economic growth efforts in the Sycamore area, and two other districts in Coralville and North Liberty.

In Iowa City, the planning team focused its efforts on the area in and around the old Sycamore Mall, which had an occupancy rate of nearly 80 percent before the closure of Joann Fabrics. The teams released rough draft plans in November 2025, meant to serve as a general guide for planning.

Plans call for a continued exploration of investment in the mall, providing different small retail opportunities, as well as mixed-use development that includes affordable housing.

The plan also explores transitioning different tenants at buildings that already exist within the district and potential new build projects.

Additionally, stakeholders call for an abundance of public art, additional landscaping, and improved pedestrian connections throughout the district.

“The Sycamore area has long been recognized as a place with strong fundamentals but real redevelopment barriers, including aging commercial properties, fragmented design, infrastructure challenges and limited internal connectivity,” Cady Gerlach, Greater Iowa City Inc.’s vice president of programs, said at the Planning and Zoning Commission meeting last week. “These conditions have constrained private redevelopment reinvestment for years despite the area of strategic location and proximity to jobs, services and existing neighborhoods,”

Comments: megan.woolard@thegazette.com

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