Mountain bike trails, senior housing and retail may be headed to a nearly 400-acre site in northeast Iowa City.
The former headquarters of ACT, Inc., is being reimagined by a variety of developers in an effort to revitalize the once-sprawling office park.
ACT will continue to occupy some buildings for 75 employees while the rest of the campus was sold to Iceberg Development Group, based in West Des Moines.
The 120-acre campus surrounding the former ACT site is the first to be developed, with most of the land in the plot accounted for by projects including a commercial center, senior housing, mountain bike trails, office space for Hills Bank, and more. The remaining 280-acre plot includes undeveloped land northwest of the former ACT campus and has yet to be rezoned.
Urban renewal district, mixed-use zoning allows flexibility
The site is part of an Urban Renewal District set by the city that allows the city more flexibility in rezoning, creating a pathway for tax increment financing.
Iowa City City Manager Geoff Fruin said creating the Urban Renewal District and the TIF district gave the city more flexibility with the land’s future.
“We recognize that there could be any number of complexities that might require a different approach to solutions,” Fruin said. “We wanted to be in a position where we could respond to opportunities and challenges quickly, knowing that there was a strong interest in seeing this area redeveloped.”
The city is using tax increment financing for improvements to nearby utilities and roads.
Fruin said the city is looking to expand sewer capacity, and city councilors voted to add traffic lights and connect ACT Drive to Dodge Street at a meeting on Tuesday, June 16.
Senior housing, commercial development planned for site
Iceberg Development Group has sold portions of the former ACT campus for individual development, which includes two senior housing communities, a hospitality venture, and office space for Hills Bank.
Oaknoll Retirement Residences, an Iowa City-based retirement community, is expanding its Oaknoll East campus, which is currently located next to the former ACT campus and included in the Urban Renewal District.
Oaknoll CEO Steve Roe told the Press-Citizen that they closed on 17 acres of land that is next to their current campus in April. The new development will include 80 new independent living apartments, 40 assisted living apartments, and a 14-room nursing home. Oaknoll East opened 60-unit independent living apartments in 2020.
“The former ACT campus is beautiful,” Roe wrote in an email to the Press-Citizen. “With our proposed development, the wooded ravine between our current campus and the new property will be maintained, providing great views for our residents. We are excited about the opportunity to have a full continuum of care for our East campus residents.”
Affordable senior housing set for ACT campus
The Housing Fellowship, an Iowa City-based nonprofit affordable housing developer, has committed to building a 44-unit affordable housing development on the former ACT campus. Named “The Iris,” the project will include a 35-unit apartment building and nine single-family cottages.
The project will receive $1.3 million in state-administered federal Low-Income Housing Tax Credits and is aimed at low-income renters age 55 and older.
Simon Andrew, the executive director of The Housing Fellowship, said that Iowa City lacks units that are both accessible and affordable for seniors, which is the goal of the “Iris.”
“Anytime that we can create more housing in the community, it’s a good thing,” Andrew told the Press-Citizen. “As much as the lack of affordable housing is a problem, the lack of affordable and accessible housing that meets the needs of most senior households is virtually nonexistent.”
More MTB, recreational and healthly living options in Iowa City
The former ACT campus will also soon be home to nearly three miles of cross-country mountain biking trails and almost a mile of gravity trails, which include step declines.
Hills Bank announced on May 15 that it would purchase 19.2 acres of the former ACT campus, including the Ferguson and Davidsen buildings, to support Hills Bank’s growth and to house operational teams.
Plans for a hospitality destination called Brightside, owned and operated by Good Habit Hospitality is also in the works at the old ACT campus. The project will include a wellness spa, farm, cafe, market and bakery, a restaurant, and villas.
ACT abandons large Iowa City campus
The dominoes began to fall for ACT in 2022 as the company sold the Tyler Building on its sprawling campus to the Iowa City Community School District. The district has since repurposed the building as its “Center for Innovation.”
In 2023, the company reported that it would lay off more than 100 employees at its Iowa City campus, eyeing a move downtown. A year later, ACT announced it was transitioning a large portion of its operation to a for-profit model after decades as a nonprofit.
Liam Halawith covers Johnson County local government and crime for the Press-Citizen. Reach him by email at lhalawith@registermedia.com. Follow him on X at @liam_halawith.
This article originally appeared on Iowa City Press-Citizen: MTB trails, senior housing and retail headed to former ACT campus
Reporting by Liam Halawith, Iowa City Press-Citizen / Iowa City Press-Citizen
USA TODAY Network via Reuters Connect
By Liam Halawith, Iowa City Press-Citizen | USA TODAY Network
