Financial Report Green-lights One Park Place Project
CEDAR RAPIDS, IA — November 21, 2016 — The City has received the financial feasibility report from the National Development Council (NDC) on the proposed One Park Place project, which concludes the project is financially feasible. In May, the City Council requested a third-party financial analysis of the project prior to entering into negotiations of a development agreement with the developer, Jesse Allen, representing One Park Place, LLC.
The NDC’s initial financial review in July concluded the project appeared viable and the request of public subsidy was within the range of what may reasonably be required to complete and operate the project. Since July, the NDC has continued an in-depth financial analysis and identified the gap for City participation in the project. NDC concludes that the project remains viable at this stage and calculates the gap for City participation at $20.5 million.
“We are pleased to hear the outcome of the NDC’s thorough review that One Park Place remains financially viable,” says City Manager Jeff Pomeranz. “Continued diligence is needed to successfully bring this project — and its many components — to fruition, but we are excited to work with Jesse and his team to begin the next phase of this project by negotiating a development agreement.”
The City Council will consider authorizing staff to begin negotiations of a development agreement with One Park Place, LLC, at its December 6, 2016 meeting.
Media Release via City of Cedar Rapids
For more information, contact:
Emily A. Muhlbach
Development Services Communications Coordinator