IOWA CITY — A long-dormant stretch of land on the east side of Iowa City is beginning a dramatic transformation, as redevelopment plans move forward for nearly 400 acres of the former ACT campus.
The multi-phase project will include senior housing, affordable and market-rate residences, commercial development and community-focused uses, with additional construction set to begin this spring. Developers say the project could ultimately deliver as many as 2,500 housing units, reshaping one of the city’s largest undeveloped areas.
The site, which remains largely untouched aside from several remaining ACT office buildings, presents unique challenges. The property was never platted or planned for development, requiring new infrastructure planning, rezoning and updates to the city’s comprehensive plan before construction can fully accelerate.
ACT sold the property to JNB Iowa City for $17.5 million in April 2024, according to assessor records. While some work is already underway, developers say the next phase of construction will ramp up in the coming months.
“We now have a chance … to spur some commercial development and residential development in an area that no one really ever thought was going to happen. No one really ever thought ACT was going to move,” said Steve Long of Salida Partners, part of JNB Iowa City.
One of the first visible changes is the conversion of two former ACT office buildings along ACT Drive into 44 units of market-rate senior housing. The one- and two-bedroom units will reuse the existing heating and cooling systems, a move developers say makes the project both cost-effective and sustainable.
“It's a class A corporate office space. We don't see a lot of them in our region, and they were built with high quality materials to last and that really helps when we're converting to residential,” Long said.
In addition, land is being sold to Oaknoll East, which plans to expand its senior living campus by adding another 141 units along Scott Boulevard. Construction timing for that phase has not yet been finalized.
The development also includes a mix of income-restricted housing supported by $1.3 million in federal housing tax credits. Plans call for nine two-bedroom townhomes and a 35-unit apartment building, with construction expected to begin this spring.
“We really want to have a mix of housing, it's not going to be all seniors, but it just makes sense with Oaknoll there and Iowa City as a retirement destination. … Our goal is to have a mix of incomes as well and housing styles,” Long said.
Commercial development is planned along Highway 1/Dodge Street, where developers are in talks with a grocery store to anchor roughly 40 acres of retail and office space. Conversations are also underway with a financial institution, restaurants and potential office tenants.
Construction of the commercial district is being coordinated with the development of a new four-way intersection designed to improve access to the site.
“Prior to the sale of the ACT property, the city was beginning to plan for the three-way signalization of Dodge/Highway 1 and ACT Circle,” said Iowa City Manager Geoff Fruin. “After the ACT property was sold and initial conversations were had with the new ownership team, we evolved the planning to include a fourth leg off the intersection into the main campus.”
Design work for the intersection is underway, with the city planning to bid the project later this year. Developers estimate commercial construction could begin this spring, with completion targeted for 2027.
The project also received $700,000 in redevelopment tax credits from the Iowa Economic Development Authority, which supported the demolition of the former Lindquist Building, originally constructed in 1968.
About eight acres of the site have been reserved for Mason’s Light House, a nonprofit planning to build Iowa’s first pediatric palliative care center and only the fourth such facility in the country.
Founded by the Sieck family of Grinnell, the center would provide hospice and respite care for children and young adults with life-limiting conditions. The nonprofit is working to raise $14 million for land acquisition and construction and hopes to open the facility in 2028.
“It just seems like a really good fit,” said Shanna Sieck, the nonprofit’s founder. “It has the nature that we want, it has the space that we need, and then it also is going to have that water feature right next to us that will be able to be enjoyed by our families that are there among people in Iowa City.”
While the western portion of the campus is largely spoken for, plans for the eastern side remain flexible. Developers expect to add additional housing types, commercial uses and potentially a future elementary school site, though no formal plans have been announced by the Iowa City Community School District.
Preserving natural features has also emerged as a key priority. Developers plan to retain wooded areas, expand the existing trail system and convert all internal roads from private to public use.
“The ownership group has embraced sensitive area preservation in their planning and both the city and development team see the existing sensitive features on the campus as an asset for the future neighborhood and larger Iowa City community,” Fruin said.
The redevelopment follows ACT’s sale to Nexus Capital Management, which transitioned the organization into a for-profit entity while establishing a new ACT nonprofit based in Iowa City. Founded in 1959, ACT gradually downsized its physical footprint as more employees moved to remote work.
Several former ACT buildings have already found new uses, including a $8.7 million purchase by the Iowa City Community School District and a $12 million lease agreement with University of Iowa Health Care.
Together, developers say the changes mark the beginning of a new chapter for a campus that shaped Iowa City for decades — and now stands to redefine its east side for generations to come.
Originally reported by Megan Woolard in The Gazette.
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