Cedar Rapids Reopens the Vault for Historic Bank Redevelopment

The question of what will become of a historic bank building in downtown Cedar Rapids is back on the table as the development group with a previous proposal in place for the Guaranty Bank building at 220 3rd St. SE has pulled the plug on their plans, according to the Cedar Rapids Gazette.

The original proposal came in two parts when submitted in 2018. First, it was to transform the Guaranty Bank building, for $20.3 million, into a 6-floor Courtyard by Marriott hotel with 75-80 guest rooms and Johnny's Italian Steakhouse. The other portion was to take a vacant parking lot in the 300 block of Third Avenue SE and spend $30.5 million developing it into another, nine-story hotel. That hotel would have included a fitness center and up to 125 guest rooms. as well as a restaurant and bar called The Republic and 1,500 square feet of event space.

The World Theater was not addressed in the original proposal, but developers were said to have been considering it for rehabilitation by a third party.

Now, says Mike Whalen, president, and chief executive officer of the Heart of America Group who was designated as the developer, none of the above remains on the table at this time.

For his part, Whalen acknowledged that "in the end, there was maybe a difference of opinion with the owner as to the value of the property that could not be resolved."

So what now? The property is back on the market, for $3.1 million listed with Gibbs Lamb Drown (GLD) commercial. They say they've had "several interested parties" including some who want to continue the idea of making it a hotel space, but there has been no official offer made or deal yet signed. Others have also teed up the housing idea.

Despite a bit of public outcry over the addition of more hotel space in downtown Cedar Rapids, officials say it's needed to supplement the DoubleTree by Marriott Hotel and Convention Center to help attract even larger events and more guests.

Adam Gibbs of GLD notes that the historic building remains structurally sound and in pristine condition for prospective buyers.