Hunter
07/13/23
The vacant lot where a US Bank branch once stood on South Linn Street will be purchased by the City of Iowa City.
The Press-Citizen reports that initial plans to build student housing on the site apparently have fizzled. CA Ventures paid US Bank $3.8 million in 2021 for the property, with plans for a 13-story high rise mixed-use building with commercial space on the ground floor and living units marketed to students above. The City Council rejected the developer’s original proposals, but approved a site plan last August.
Since then, CA Ventures decided not to develop the site and wanted to sell the property. Other developers have expressed interest, also with plans for student housing on the site.
The City, however, has different ideas. A staff report presented at the City Council meeting indicated that the city would forgo student-based housing and search for a developer that would help add to what they call “the long-term stability and vibrancy of Downtown Iowa City.”
They’re paying CA Ventures $4.55 million for the property and hold the right to terminate the agreement within the next two weeks. The City Council voted unanimously to approve the purchase. The Press-Citizen reports City Manager Geoff Fruin called the purchase part of a long-term effort, while the council will likely assess the property’s future within the next year.