Iowa City wants to develop former U.S. Bank site into a mixed-use property

The path forward is slowly emerging for a prominent yet vacant downtown Iowa City property.

Local officials received input from more than 1,800 residents for the next phase of the now city-owned 21 S. Linn St. property. Respondents seek a variety of options, from a music and performance venue to a housing project and additional downtown parking space.

The City of Iowa City survey, which asked what residents felt was missing downtown and why they visit the area, ran for six weeks, ending May 1.

Many residents asked the city to consider an establishment that is open late and on the weekend. Some responses suggested a place that isn't built off alcohol sales and less student-focused. Other ideas suggested additional public seating and greenery options, as well as more space for arts and culture exhibitions.

The Iowa City City Council did not immediately provide feedback during its regular meeting on June 4, but counselors are expected to share their thoughts at their next work session on June 18.

Economic Development Director Rachel Kilburg Varley said her department welcomes any additional comments as the city works on a "request for proposal" or RFP.

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Economic development director intends for mixed-use development

The city intends to develop 21 S. Linn Street into a mixed-use property, Kilburg Varley told the council on Tuesday, June 4. Mixed-use properties combine residential and commercial business spaces.

Nine percent of respondents specifically supported that plan, Kilburg Varley said.

She said the RFP will start as a general, open-ended prompt for developers to generate creative ideas. The city will ensure the ideas are refined as proposals come in, Kilburg Varley said. The city will also look to incorporate input from the community and the council.

This process takes inspiration from the development of The Chauncey, an apartment and hotel building in downtown Iowa City that was first proposed in 2012 out of a similar, broad-scope request for proposal. That property also houses FilmScene movie theatre, Fix! Coffee and SpareMe bowling in the lower levels.

The city's final request for proposal will need approval from the Iowa City City Council, which also includes a public comment period.

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Twisting, turning history for property

The property at the corner of Linn Street and Washington Street was formerly home to a small U.S. Bank location and some bank parking.

CA Ventures purchased the property for $3.8 million and demolished the building in 2021 to make way for a 13-story, mixed-use property. The company said they planned to construct 200 student units.

Eventually, the city approved a site plan in August 2022, but CA Ventures hadn't applied for a building permit. According to a city report, CA said they no longer intended to develop the site and would rather sell. Other developers started to inquire, also hoping to develop student housing.

Ultimately, the City of Iowa City acquired 21 S. Linn Street from CA Ventures in July 2023, hoping to find a developer to maintain "the long-term stability and vibrancy of Downtown Iowa City."

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Ryan Hansen covers local government and crime for the Press-Citizen. He can be reached at [email protected] or on X, formerly known as Twitter, @ryanhansen01.

This article originally appeared on Iowa City Press-Citizen: Iowa City wants old U.S. Bank site to become mixed-use property