East side Highway 63 backers undaunted despite setbacks

Jun 20, 2010 — Waterloo-Cedar Falls Courier

Amie Steffen

Jun. 20, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- WATERLOO -- It's not just the terrible economy, and it's not just the perceived biases people have of the U.S. Highway 63 corridor in east Waterloo, Morgan Wortham said.

It's both.

And when the two have been combined for nearly two years, threatening the future development of Logan Plaza and the corridor in general, it's easy to see the whole project as a bit futile.

That's not stopping Wortham, executive director of the Highway 63 Gateway Community Development Corp. She's still working at getting a family-style restaurant in Logan Plaza to cater to the notoriously underserved northeast side of Waterloo.

"We've looked at everything from mom-and-pop-type restaurants to pizza chains to buffet style," she said. "The feedback we've gotten is, they're willing to locate a restaurant there, but they need an investor."

That investor probably would need to put up $500,000 in cash and $1.5 million in net worth, Wortham said.

The good news is there's grant money available to the restaurant owner -- $300,000, specifically -- to be used for any soft development costs like furniture, equipment or rent abatement for the tenant who ultimately decides to locate there.

The bad news is if a tenant can't be found and the project isn't going by September of 2011, the money disappears.

Other grants could become available, said Randy Pilkington, a Highland resident who is a board member of both the CDC and the Waterloo Neighborhood Economic Development Corp., which works to assist sole proprietors with lifestyle or small retail businesses.

But he sees no reason why the grant should expire. Hy-Vee, Walgreen's and Allen Hospital have all flourished in that area, he noted, and Wortham said the Cedar Valley Cardiovascular Clinic is adding new jobs, thanks to a CDC grant.

Just last week, Subway broke ground on Logan Avenue to build a strip mall across from the plaza.

"There's a solid traffic count in the area," Pilkington said. "There's an economic base; there's buying power. It's not going to take much to turn the corner and get businesses in that area."

Another hurdle besides the recession, Wortham said, is the negative perceptions people have of an increase in crime in that part of Waterloo. She insisted those aren't founded.

"The (Waterloo Police Department) shows no more crime in that area than anywhere else in Waterloo, or in the Cedar Valley," Wortham said. "We pulled the stats for Logan Plaza and across the street, because we wanted to show (possible tenants) it was a safe area."

But Matt Whitehead, a commercial specialist with Lockard Realty in Cedar Falls who works out at Logan Plaza, said at least one potential restaurant builder was scared away after hearing reports of problems with workers.

"Some of the restaurants up there now have had issues with employees," Whitehead said. "Some don't want to take on that risk."

But taking a risk, Pilkington and Wortham said, is exactly what this forgotten part of the city needs.

"It's going to take time; nothing will happen immediately," Pilkington said. "But I think it will be a very successful operation. There's a lack of competition in the area."

Newstex ID: KRTB-0150-46250781