Bill Michael (Host): Welcome to the Our CR Podcast. Your behind the scenes look at Cedar Rapids City government projects and the people working to make our community a better place. In today's episode, we're starting with a big topic, economic development.

City Manager Jeff Pomeranz: We have so many exciting projects right now and watch out for the next 50, a hundred years.

Mayor Tiffany O'Donnell: So, we're not just blanketing the country with a, you know, "Here we are at Cedar Rapids. Come see us," we're being really smart about how we're doing it.

Host: Welcome and thank you for joining us on the Our CR Podcast. My name is Bill Michael, your host. And today, I'm sitting down with two city leaders, Mayor Tiffany O'Donnell and City Manager Jeff Pomeranz. We will dive into why big companies are betting on Cedar Rapids, how the city plans for smart sustainable growth, and how recreational amenities like the trail system and improving the overall quality of life is becoming just as important to economic development and business attraction as the open-for-business culture in Cedar Rapids and availability of land and public utilities. So, welcome to my guests.

City Manager Jeff Pomeranz: Thank you.

Mayor Tiffany O'Donnell: Thanks.

Host: Very excited to be here and do this with you all. So, today's topic—relatively big topic—economic development. And if you're listening to this and if you've ever wondered what economic development actually means or why the city has a whole division dedicated to it, this is a great place to start.

Mayor Tiffany O'Donnell: And it's one of the things I want to add, just right out of the shoot too, as mayor in this form of government, I am one vote of nine members of council. I mean, no one does anything alone on the city council. One of the unique privileges I have though, according to our charter, is that I am mayor of economic development. So, economic development is special to me, it's important to me, and it's a top priority for me. And honestly, one of the things I'm certainly most proud of here over the last four years.

Host: Yeah. Well, that was actually one of the first things I was interested in chatting with you about, is how did you get interested in economic development? And how important is it to you, which you've already alluded to a little bit? But, you know, kind of where did you get your start and interest? And what are the things you like to focus on?

Mayor Tiffany O'Donnell: You know, it really is the engine that drives our region at the end of the day. As the sisters used to say, no money, no mission, meaning, you know, we've got to have good, reliable, stable, growing income coming into our tax roles and income to support all that we want to do as a city for our community members. So, none of it happens in a vacuum. We need workers for those jobs and economic development. But I'm keenly aware that, in order for us to grow and to provide all that we believe we need for a growing metro area, we've got to make sure that the best businesses come to our region.

Host: Yeah, absolutely. I'm going to ask Jeff a question, but I know that we're going to be talking a bit about a regional collaborative initiative you've been working on. We'll touch on that a bit later. But Jeff, you've been working in economic development. You have deep experience throughout your career, just talk a little bit about that. And also, I'm curious, you know, what's the evolution of economic development at the city looked like, and how did we end up with our own division and that sort of thing?

City Manager Jeff Pomeranz: Thank you, Bill. And by the way, to our listeners, Bill Michael is also our Director of Economic Development. So, he has a big part in our success. I have been involved in economic development really through the four cities I've had the privilege of serving. But prior to coming to Cedar Rapids, I was city manager in West Des Moines. And West Des Moines had a lot of success in this particular area. And we had all kinds of companies wanting to move to West Des Moines, so there was lots of diversity. And I just learned a variety of lessons in West Des Moines. That, along with our mayor and city council and the city team, I learn from and try to bring every single day to the city of Cedar Rapids.

So, I'll mention one of the most important ones that seems kind of basic, but it's something that others don't follow all that well. And that's having a business-friendly philosophy. And so, we are here to make things happen, to have an open door, to be friendly and, most importantly, to work projects through the process in a very, very easy way that makes things easier for the company and makes things easier for the city. So, we make things happen in Cedar Rapids when a company comes and says they're interested in the city of Cedar Rapids, we don't just sit back. Our mayor is highly involved. We have council members involved, absolutely our entire city team and myself. But we kind of lay out the welcome mat. And not all deals are good deals, but for those that are attractive to Cedar Rapids, we do everything we can do to make sure that that business makes the decision to come to Cedar Rapids. And I think, you know, we'll be talking about some of those success stories as we move through this discussion today.

Mayor Tiffany O'Donnell: It really is a part of our identity, Bill. I mean, when I look at and I describe the personality of Cedar Rapids, if you will, we're very entrepreneurial in comparison to not only just other cities in the state of Iowa, but in general. You know, entrepreneurism is in our DNA. We grow things, we start things. It's part of our origin story. So, many of those businesses like Collins, like little drugstore products, like so many others that were started here and have continued to grow here are really the shoulders on which we stand.

I mean, it's a part of who we are. And so while I believe that the companies that are interested in Cedar Rapids see that, and it's not uncommon for companies like Sub-Zero that came in from Wisconsin, a family-owned business, the people that they talk to weren't just city teams, or you and Jeff, they went out to other family businesses that have grown in Cedar Rapids. So, economic development is a part of our story, and it's something that we're proud to continue as Jeff said, to make it easy and attractive for new business as well as those legacy companies to stay here and grow.

Host: That open-for-business idea as well as the ability of new businesses that are thinking about moving here to come and speak with some of those businesses that may have been here for generations or just started is a big asset. And I think that's one of the things we've learned in the past couple of years with some rather large companies coming in from out of state—in some cases, out of the country—to come visit us, is once we get people on the ground, that's when we really compete well. Once we get them here, they have the ability to talk to some of the people here. That's a big advantage for us.

City Manager Jeff Pomeranz: Yeah. And that's our job. Once those companies indicate an interest, we've been extremely successful in getting those companies to move to and locate in Cedar Rapids. And we can give you, you know, lots of examples of that.

Mayor Tiffany O'Donnell: You know, I think too, at the end of the day, it is those relationships. A city our size has so many benefits. I mean, we're either a large small town or a small big city. We're very accessible. And one of the things that I hear from—especially businesses from the coast—specifically, we had one from Long Beach, California in town, had my cell phone—the Google representative had my cell phone and was surprised.

City Manager Jeff Pomeranz: We're still communicating with him.

Mayor Tiffany O'Donnell: Right. I was worried about his trip through the ice and snow as a California kid. The relationships here are really, I think, what prompted a lot of these deals to cross the finish line. And not only that, but we're looking at them just as much as they're looking at us. As Jeff said, you know, not all business is great business and some money is too expensive. You know, we want to make sure whoever's coming here—I think Sub-Zero is a great example. When they came here, they said they felt like home. They felt at home here. That's really important. Because we know in a town our size, we lean on a lot of private partners for all kinds of amenities and other things. They really are community partners. So as much as we want them to come here, we want to make sure that they're going to fit in here too, and are willing to be partners.

Host: Well, thinking about relationships, that is extremely important not only for the partnerships you're talking about, which I think we should come back to, but there's also the existing businesses. And one of the things we focus on in economic development here in Cedar Rapids is business retention and having those relationships with existing business owners, employees that feel comfortable to come and talk to us and say, "Hey, I'm having an issue. Can you help me solve it?" And I think that's something that we do well here in Cedar Rapids, and is really important to our success.

City Manager Jeff Pomeranz: We started our day this morning, Mayor, meeting with some business representatives that had an item they wanted to discuss with us. And we did that. And I think it turned out very, very well. But being open, being willing to have the conversation. Looking towards solutions, problem-solving, it seems very obvious. I mean, you don't have a graduate school class on it, but there's a lot of common sense. And we try to apply that relationship-building as you and the Mayor have said, and common sense and problem-solving to the way we attract business to either expand or come to Cedar Rapids.

Host: Yeah. And then, coming back to partnerships, I've heard both of you say that economic development is a team sport, which it absolutely is. And, you know, most people probably don't realize how interconnected the city is with some of our private partners and some of those others. So, you know, I think we should chat a little bit about who those partners are And what role they play and the types of roles that we play and support one another in pursuit of our economic development goals. So, you know, who are the partners that first come to mind?

City Manager Jeff Pomeranz: Well, a big partner, and the mayor has helped with this as well and built this relationship, but the state of Iowa is a huge partner to us as far as economic development. So, Debi Durham and her team have made themselves available to us. And when it's come down to making different grant applications or funding requests, the state has been very, very collaborative. So, that's one I'd say has been extremely important.

Other partners certainly, what we call the EA or the Economic Alliance, they deal with a number of economic development issues and they provide support to us. Their role, as we've worked with them to define, it is a lot about getting the word out about Cedar Rapids and the Cedar Rapids region. Our role comes when that company comes to our city—comes to yourself, Bill—and says, "We'd like to look at Cedar Rapids as a place to land. And I really feel with our mayor support and our council support and our staff team, there's nowhere better than if we're given the opportunity to show what we have, we are going to be very, very effective at winning the battle. And we've proven that in a number of situations, which I'm sure we'll have the opportunity to go into.

But, you know, I'm so excited right now, because we are on an absolute roll. And the mayor knows that. We have a lot of real-world problems to deal with and work through. But pretty soon, we're going to make the announcement. We will have made it on this podcast, I guess that, you know, we have the highest building permit activity in the state of Iowa. We just have a lot of things going on right now, and I'm not sure everyone realizes it. So, that's our job to get the word out, but we have real momentum that is going to benefit Cedar Rapids for the next hundred years.

Mayor Tiffany O'Donnell: Yeah, for sure. And when you think about the two data centers, the casino coming and NextEra opening up, recommissioning again, the Duane Arnold Nuclear Plant, I mean, there's a need for workers here for the next five to 10 years consistently. Not to mention the businesses that will then come because of those businesses, because that they're here.

You know, and none of it exists in a vacuum. I mean, we also realize that, you know, a growing city has growing infrastructure needs. I think there's been a lot of talk about how do we sustain our power grid. How do we have enough water? And I think, you know, one of the things I continue to say, and I say it with the support of our friends at Alliant Energy, these projects actually reinforce stable rates, because those companies need to grow. They've had infrastructure plans as well. Having these large projects, these companies are paying for those improvements that, as a city, we're going to need anyway.

So, all of those, again, cranes beget cranes. The city not only has an eye on building. We also have an eye on how we're growing, which again, is where our city planning and development offices. Jennifer Pratt, our Director of Development, comes in too make sure we're not just growing for growth's sake, that we're growing in smart ways and, you know, what we're putting

in

Mayor Tiffany O'Donnell: places fits the overall vision plan. And not a lot of people know we do have a roadmap. You know, in Vision CR, we actually do have a master plan for how our city should look.

City Manager Jeff Pomeranz: Yeah. I mean, you visit other communities and these large data centers, you know, maybe right on the side of the interstate. And so, there's nothing wrong with that. But, you know, they're not architecturally the most significant in the world. If you look at where the Cedar Rapids' new data centers are under construction, QTS and Google, they're in a place where, you know, visually they're not impacting anyone's view in any negative fashion.

So, I'm excited that, as you said, Mayor, we care about where things go and how they look. And we care more about that than we have in the past. You know, it used to be economic development was, you know, what's the new factory that you're trying to encourage. And now, in Cedar Rapids, we just have so many different ways of defining economic development. And the kinds of projects that are economic development. And I think that's going to bode very, very favorably for us in the future.

Mayor Tiffany O'Donnell: I think something that's different too than maybe when you started, Jeff, is that economic development—amenities are now part of economic development. We didn't use to think about that. But I mean, how many times have I had somebody say, "Do you have a Trader Joe's in your community? Do you have a Whole Foods? Do you have a Costco? Do you have a Bass Pro?" You know, these sort of shops that we get used to hearing about in other cities, they become amenities. They become, again, drivers of population and worker retention as well as attraction. So, we have that hat as well in economic development.

Host: Yeah. I mentioned, the trail system, for example, in the intro. And there has been somewhat of a sea change in economic development. You know, some people used to consider it smoke stack-chasing. Obviously, business attractions a big part of it, but a lot of the questions we get are very similar from companies. Do you have land available? Do you have water? Do you have electricity? Do you have wastewater? And an additional question now that's standard almost across the board is, "Will my employees want to live here?" And so, quality of life, as you just brought up, is extremely important. You know, so we're focusing a lot of resources, time, and energy on quality of life issues, amenities that you talked about and, you know, working with the private sector as well. First and First West is one example of that. There's, you know, some public space embedded into that development. And so far, it has been been really successful.

Mayor Tiffany O'Donnell: One of the things that people, I think, might be surprised about when we talk economic development and we're recruiting companies is the tremendous free public education we have here, certainly the K through 12 and, you know, now dual enrollment programs for our high school kids, robust trade programs. And we talk a lot about Kirkwood Community College here being a tremendous resource for companies that might need to train their teams here; a couple of four-year colleges and universities in Cedar Rapids, as well as an R1 research university, you know, within 25 miles.

So, those companies are interested in that, not only for their teams, but for the families of those teams who are going to come here. So, education is a key component as well to economic development.

Host: Yeah. We'll have companies come in, they're looking at Cedar Rapids. They hire a site selector. They'll narrow it down to three, four places. And then, they want to make site visits. So, they'll schedule that, whether it's through us, the state, economic alliance, you know, we all work together. And they often want to talk to the school district. They want to speak with the Eastern Iowa airport. And they want to talk to those folks about, you know, how easily can people get in and out. What's your transportation, like in terms of how easily can I get to the major metros around your area.

And, you know, training is another one of those that you mentioned. Kirkwood Community College, if listeners aren't aware, does some pretty fantastic training that is customized for specific manufacturing companies. There's money to support that training as well. And I think that's a huge asset, and that gets utilized a lot. And so, you know, when talking about partnerships, you know, that's another big one that's really important as well as the school district. You know, again, you mentioned it, a lot of people don't think of, you know, the school district when they think of economic development, but it's an important component.

City Manager Jeff Pomeranz: The other thing we're very proud of that's related to that is our relationship with organized labor. And so, when we have some of the success that we've had in recent years, we're going to see, for instance, on the data center construction, we're going to see thousands of workers that maybe on a temporary basis, we'll be doing that temporary work for about a decade.

So, I mean, it's a huge impact. And so, really, we need everybody at the table. But we, at the city, have been very supportive of organized labor and they've been very supportive of the community. Just the other day, we had a conversation with organized labor about, you know, the number of employees that are going to be necessary to work the construction of the data centers. And everybody's excited about it. Everybody's, I think, ready for it. But there's still a lot of communication that needs to occur. And, as you said, Mayor, it's a team sport. We work together, we support each other. Everybody's got a role. But the respect is there. So, I think that makes a big difference in Cedar Rapids.

Mayor Tiffany O'Donnell: Without a doubt. And we were interviewing candidates for the Cedar Rapids Metro Economic Alliance Executive Director, and I was having lunch with one of our union leaders. And I said, "What would you like me to ask the candidates?" And it was so interesting, because he said, "Just make sure they know how special our relationships are, and that we have relationships." Government, organized labor and the private sector all work together really well here. And apparently, that's not the norm. And he had said, you know, his colleagues from across the country—he'll mention just in passing some of the projects and how we work together, and they're just stunned at the relationships. And that does matter.

As Jeff said, you know, we'll have union leaders reach out about, you know, about places to live when those union members come in, text us, call us, meet us. It's just we have great relationships. And without a doubt, I think, economic development is the winner in that. And at the end of the day, citizens here are winners of those relationships.

Host: One of the data centers QTS, when we did the very first announcement—gosh, it's probably been six months ago now. Labor was there, you know, for that announcement. And they've created their own relationships with some of these companies. And I think we're going to see a lot of benefits of that as these data centers really take off and get rolling.

City Manager Jeff Pomeranz: Yeah. And the Mayor may want to expand on this, but as far as the number of employees, these data centers, they're kind of the talk right now as far as expansion of our labor force, there's been a lot of emphasis on more of the temporary workers. But between Google and QTS, we're going to see hundreds of permanent workers in Cedar Rapids, new Cedar Rapids residents.

Mayor Tiffany O'Donnell: And the nuclear plant to add to that .

City Manager Jeff Pomeranz: And the nuclear plant, and the casino as well.

Mayor Tiffany O'Donnell: Hundreds of workers.

City Manager Jeff Pomeranz: But, you know, when we entered in this very complicated development agreement with the data centers, they don't like to put a number on a piece of paper because, you know, they may get held to that someday, and that's just not something they feel they should have to do. So, the numbers were low and kind of unimpressive when you look at the magnitude of these projects. But the reality is we're looking at hundreds and hundreds of workers. And we actually can't even talk about it now, but we know that Google is going to be bigger than we ever anticipated, and QTS is going to be bigger than we ever anticipated. And QTS is going to be in town at the end of July to make some announcements, but it's just going to be more impactful, more of a positive impact on Cedar Rapids than anything we've seen in the history of the city.

Host: Well, as far as construction jobs go, how do you define a full-time permanent job? Because the longest I've personally ever worked for a single employer is seven years. Now, I'll be here longer than that, certainly, Jeff.

City Manager Jeff Pomeranz: We hope so.

Host: You know, if you're talking about a 10-year construction cycle, you know, those are significant.

City Manager Jeff Pomeranz: And it's going to be both, permanent as well as the temporary. So, it's exciting.

Host: Well, workforce development is something that I wanted to make sure we had an opportunity to talk about today, Mayor, because I know that it's something you are very passionate about. And, you know, you've spearheaded this regional effort. And I just wanted to give you an opportunity to talk about that because it's something, you know, that is a national issue. You could say an international issue. With the labor market being what it is, it is competitive.

Mayor Tiffany O'Donnell: It's tight.

Host: And we also like to say that cities compete and regions compete not only for business development and business retention. But one of the most competitive landscapes now is workforce development, which is something that you brought to the forefront, you know, after you got elected. And anyway, talk about that a little bit.

Mayor Tiffany O'Donnell: It's people. So after those companies that you mentioned talk about water and wastewater and power and land and all that, and the schools, they talk about people. It really does us no good to bring in these companies if we don't have a workforce for them. So, it really is our opportunity, for the first-time, be laser-focused on making sure that we're keeping great people here and making sure that we're telling the world who we are.

And so, I joined forces with my two dear friends who are mayors in nearby towns mayor Steve in Hiawatha and Mayor Nick in Marion, initially, just those two guys and I, for a collaborative growth initiative. So, we pooled our monies alongside our cities and our city councils, and decided to take a look at how we're viewed across the country. And what we identified was some real opportunity. We're not really viewed at all by people.

So, the firm that we worked with identified five geographic locations that have the people with the skills and the ability to move. So, we're not just blanketing the country with a, you know, "Here we are, Cedar Rapids, come see us." We're being really smart about how we're doing it, and hired the very first-time a Director of Talent Attraction, again, out of the EA that is on point to make sure that we are achieving very specific metrics in growing our workforce and our population here. So, we're starting off with, which is the three mayors. But the goal is certainly the more, the merrier. As we think about greater Cedar Rapids, we have to think bigger. I talk a lot about abundance mindset versus scarcity. You know, it's tempting to sort of put your walls up, you know, for your particular city.

For us to be successful, Cedar Rapids has to be the best Cedar Rapids it can be. Marion has to be the best. Tiffin has to be the best; Coralville, Iowa City. We all got to be our best, and imagine if we are all a part of greater Cedar Rapids. Imagine if that story is told. We are just a lot bigger, and I believe we'll get noticed better and be more attractive to more types of people from different places. So, we're just getting started.

Host: Indeed. Yeah. And one of the things that came out of that study that really stuck with me and surprised me was the amount of money that metros, other cities around the country are investing in marketing to attract workforce to their community. You know, the first time I heard that there were cities that were our size or a little bit larger spending millions of dollars a year on workforce attraction. That did surprise me a bit, but it just puts a fine point on how competitive this is nowadays, because it's imperative for a growing economy to get people to come and work. And if you can't attract them, that's a big issue. That's a bottleneck for growth.

Mayor Tiffany O'Donnell: And I firmly believe that once people know about us, I mean, we're not very good about—it drives me nuts when people say we're a well-kept secret. Well, no. We're spilling secrets. We're spilling the tea. We're spilling the tea on Cedar Rapids. The world needs to know who we are. And certainly, the talented workforce needs to know who we are. And this is one of the first real steps we're taking to get that done.

Host: Yeah. And both of you may have known this already, but one of the other things that came out of that study was, yeah, not everybody around the country is thinking about Cedar Rapids. But once we get them on the ground here, huge advantage for us. We're very competitive, again, once we get people on the ground and they make a trip to Cedar Rapids.

City Manager Jeff Pomeranz: We're really a great place to live. And we've gotten a lot of attention nationally in a variety of publications that were all on our website, those articles, but our rankings are high. And that's because we have so much to work with. We keep getting better due to the leadership of the mayor, city council, and the work of the city team. But there's also a lot here right now.

And so, people want to be in Cedar Rapids is my impression. And I have some evidence of this. And they want to be here because of the quality of life that we have, but also the vision for the future. We are not an old industrial town of 150 years old that's sort of just resting on its laurels and on its past. We're a dynamic, growing community with strong leadership, and we have a whole future ahead of us. And it's a really exciting time.

Mayor Tiffany O'Donnell: Yeah. So, I'm literally in the Denver airport—you touched on our airport, by the way. I can't say enough about 20 plus direct flights. I mean, that airport is a shining star. We're lucky to have it in Cedar Rapids. I'm in Denver connecting home to Cedar Rapids. And this gentleman stops me and he said, "Are you the mayor of Cedar Rapids?" And I was like, "Wait, This is going to go one of two ways." But he seemed nice enough. He seemed nice enough. And I said, "Well, yes, I am." And he said, "I follow you on Instagram. I'm from the Bay Area. And my husband and I are on our way to Cedar Rapids to close on a house." Not from Cedar Rapids. Don't have family in Cedar Rapids. Heard about Cedar Rapids and made a trip, one or two trips—and they were sold. And so, they got rid of their place in the Bay Area and they live in Cedar Rapids. And both have made a life here and are actually working here in town. And we've been out for drinks a couple times. You just never know who you're going to meet at the airport.

But to the point of being an attractive place for people, we have a great story to tell. And it's our job now to not only make sure the people here in town know it, because they're the best storytellers. Their experience here is the best. We also got to make sure that we're not shy about it elsewhere.

Host: Yeah. Well, shout out to that individual. Hopefully, they're listening. So, let's give people a bit of a window into what it looks like, practically speaking, when we're working with companies.

So, data centers are obviously grabbing headlines right now, you know. And Jeff, you were involved with Google from the beginning. Mayor, you were involved with QTS from the very beginning. In fact, you know, there was a rendezvous with their CEO at one point.

Mayor Tiffany O'Donnell: At a hotdog stand at the Big 10 tournament.

Host: Right.

Mayor Tiffany O'Donnell: Where real deals get done, Bill.

Host: Exactly. So, I don't know, just talk a little bit about, you know, how long that had been going on and what it really took to make that happen.

City Manager Jeff Pomeranz: QTS was a lot faster. Maybe that's because Mayor O'Donnell was helping with it.

Mayor Tiffany O'Donnell: I don't know.

City Manager Jeff Pomeranz: But Google started in 2019. So, it was really pre-COVID and it had some ups and downs. We knew it was a big project. We didn't know it was Google at that time. Many of these projects have code names. So, it was Project Passage. And it took a while for us to kind of figure out that it was Google. But more importantly, we knew it was a significant project. But it was slow. Now, when they came to Cedar Rapids, they were interested in some of the things that we've talked about today. In fact, all of them. But they wanted to know about our water supply. They wanted to know about our wastewater treatment. They spent a lot of time with Alliant Energy. I mean, so these people know what they're doing when they come into a community.

And then, you know, they did look at the quality of life of the community. And also, the leadership commitment in the community. So, they take a kind of a holistic view. As I said, it was 2019 that we first met Passage, now known as Google. And it was, you know, really until maybe—Bill, when did they say they were coming? It was about a year and a half ago or so, that they actually made that commitment and they brought their name out. So, it takes time. It seems obvious. But beyond the technical, beyond the wastewater treatment and the water treatment and the electrical capacity and how much the electricity costs, you know, we convinced them and we worked with them so that they understood this was a community that wanted to see things happen. We wanted to move forward. We wanted to get the project done. And we weren't willing to give away the farm at all. But we did come to some benefits for both the company and the city that, in essence, worked for all.

But through that whole negotiation process of what is about a 50-page development agreement, we did develop a relationship. You know, we're very proud of those relationships, because I think that makes a huge difference in economic development. And other communities don't always understand that. And I saw that in West Des Moines, and I saw that in other communities. So, that is something you don't learn in school. It's something you learn as you go and you fail and you succeed. And then, you continue to hopefully succeed as we are in Cedar Rapids.

The QTS story, which I'll turn over for the mayor, because she's been highly involved in that, but it has been faster than Google.

Mayor Tiffany O'Donnell: Way faster.

City Manager Jeff Pomeranz: Yeah. Which is good. And a lot of that has to do with really the need for what they're providing. In this case, it's service to a major client or tenant that's going to occupy the buildings on their site. And you need to move quickly and you need to be responsive. And all of this is really linked up, whether it's Google or QTS, to AI. And we really should be very proud that AI is going to largely live in Cedar Rapids. That's going to be a very large resident of Cedar Rapids, because that's what the president of Google told us when she was here.

And that's what QTS has told us as well in addition to a number of other services. But Mayor, why don't you talk a bit about QTS?

Mayor Tiffany O'Donnell: Yeah. Well, we're known for beans and corn on our farms. And now, we have serverfarms. Just a different kind of farm. And, you know, QTS is one of those great stories of a guy and his wife had the idea and have turned it into really something all across the country. And they're Midwesterners. They live in Kansas City, so they have that Midwest mindset. They knew about Iowa. And I will say, he was absolutely determined to land in Iowa. The state didn't do a whole lot to help us out in terms of incentives or to get him here at all. He just kept coming back to Iowa because I think he, like others, appreciated the accessibility of leadership here. Our willingness to find a way, which is what we always say at the city, to find a way. And relationships matter to him.

And he was in town over an Easter break and wanted to connect. And I was out of town that week and his partner said, "Well, we understand the mayor likes basketball." This was during Caitlin Clark's years at Iowa. "Is she going to be at the Big 10 tournament in Minnesota?" "Absolutely. I'll share her cell number and they can connect." And sure enough, Chad and his wife and I met up by a hotdog stand and just again talked about the benefits of being in Cedar Rapids and how much we'd love to have them and continue the conversation. And the rest is history. And because it was a smaller nucleus, I suppose, at the top, it did go a lot quicker. And that said, it's going to be even larger—even larger space-wise.

City Manager Jeff Pomeranz: So, it's unbelievable what a company is spending—billions.

Mayor Tiffany O'Donnell: Literal billions. Yeah.

City Manager Jeff Pomeranz: And yet, it's also important to have those personal relationships.

Mayor Tiffany O'Donnell: Oh, I still have his cell. Absolutely.

City Manager Jeff Pomeranz: Because companies want to know that they're dealing with communities that are open, that they are honest, they are problem-solving, that are ready for them. And that's what the mayor convinced him of at that tournament.

Mayor Tiffany O'Donnell: And, you know, I joke when say people don't move here for the weather. And I'm only half kidding. I love the weather here. I love the seasons, and I think plenty of us do. And we got to make sure we offer just that much more in such a competitive landscape. You know, we have to have an edge. And I firmly believe that, time and time again, it shows that our accessibility and not just, you know, the city manager and I and city teams—you, Bill, you're on speed dial, I know, for a lot of these developers and in companies. Even at the state level, you know, when the governor's with us, pitching the largest economic development in state history that we lost to North Carolina, by the way, just I don't think by much, but the governor's here and says, "Here's my cell number. Just so you know." You know, it really, I believe, what time and time again will set us apart.

Host: Yeah, indeed. Okay. So, something we don't always do well as Midwesterners is celebrate a little bit some of the big wins. So since 2017, $1.1 billion of investment just on the Southwest side, starting with little drug you mentioned earlier in 2017. That is spectacular. Obviously, it's something we're very proud of. That doesn't happen without—you know, something everybody always has interest in, incentives. One of our primary tools is tax increment financing or TIF. A lot of misnomers, I think, surrounding that particular tool and how it works.

So, just thinking a little bit, Jeff, I think about, you know, that tool and how it works. You know, I've even had friends and family say to me, "Well, you know, you're writing these companies these big checks," you know? And I think that is not really necessarily something everybody would understand unless you're involved in it on a day-to-day basis. But these projects generate their own, you know, their own increments. So, just chat a little bit about that.

City Manager Jeff Pomeranz: First of all, we have a TIF incentive plan. So, we don't just make numbers up for companies. So, that's the first thing. We don't normally divert from the plan that we have put forward. But incentives are important. And we've found this as we've talked to CEOs and other company representatives about Cedar Rapids. So, we have to be competitive. We don't have to do more. In some cases, we have other things to offer and we may do a little less, but we've got to be willing to play the game. If you're not willing to play, if you're not willing to put something on the table and discuss it and negotiate, then in today's environment, probably going to go somewhere else. And so, that is important.

Now, your point about people are concerned that we're just writing—We have a huge checkbook, and it just doesn't work that way. So, you have a piece of land. And the company comes forward and says, we want to spend a billion dollars on this piece of land. And what we do is we say, "Okay, we have tax increments, financing, or what's called TIF. And what we'll do is you, company—well, in most cases—pay your taxes on that new value. And we will then rebate part of, or all of that tax payment back to you for a period of time. So, you know, we're not writing checks where we don't have the capacity that is provided by the company itself. And if it wasn't for the company, there wouldn't be the TIF dollars, and there wouldn't be the developments. So, it really works together. And then, after the period of time, and in these development agreements, you know, we have some that are 10 years, some are 15 years, some are 20 years—but after that period of time, then all those dollars go to the city of Cedar Rapids in our case.

And so, I'll just give a quick example. But this has to do with housing. So, there's a project called Water Tower, which is off of 8th Avenue in the NewBo area. And that project had a significant TIF payment to the new owners of that development. The city of that time, this is before my time. They wanted to attract new individuals to this rehabilitated old factory. And that was done. I don't think it was usually controversial, but there was question, where are you getting the dollars to do this? And we're now in a position of receiving full taxation on that project. , As far as TIF dollars, the developer was paid off. And that is on the tax roll now fully. And that's the way all these projects are going to be. It just takes a while.

Mayor Tiffany O'Donnell: And as, as a city council, I just look and say, "Wow, that city council in 15 years is going to have a pretty imp—" I mean, what fun will that be?

City Manager Jeff Pomeranz: That will be a party.

Mayor Tiffany O'Donnell: Full fair. That will be a party for those data centers. Wow.

Host: So, you may have to rebate 50% back to get them there. But I mean, the fact of the matter is, unless the federal government banned its local incentives, we are in a very competitive landscape. And it's important to acknowledge that and understand the purpose for those. You know, something else? I think that we really are appreciative of. You were talking about future councils, you know, reaping the benefits of some of the work that you're doing today. We've had the benefit of good leadership over the years. And, you know, a couple decades ago, there was a decision to invest in excess water and wastewater capacity.

Mayor Tiffany O'Donnell: Thank God.

Host: Which is a decision that the council and you, Mayor, made again recently. "Hey, let's invest in that." That has been an extremely valuable marketing tool for us for economic development. We have land, and not only that, we have available water and wastewater capacity. And without that, we would not have been able to certainly attract Google or, you know, some of the other large companies. And that goes for power, gas as well.

City Manager Jeff Pomeranz: Yeah. That's well said, Bill. You know, those utilities are absolutely critical to our economic development. And without those utilities, we just wouldn't have it, as you just said. And so, there's always a lot of people when you have the kind of success we're having, that I feel like they did it. And you know, we're all a part of it. We're all a part of that success as we've talked about today, but the individuals who 30 years ago sat in the chairs that we're all in now and made those investments, I think, you know, we're all very generous to say thank you for making those tough choices, because we have something that many communities don't have. We have water. You know, we have good clean water, good tasting water, good quality water.

Host: Best tasting water.

City Manager Jeff Pomeranz: Best tasting water in Iowa several times in a row. Our wastewater systems have been extremely important to our success. It's not, as they say, the sexiest thing to talk about. But it's absolutely critical.

Mayor Tiffany O'Donnell: It's the headline with the companies for sure.

City Manager Jeff Pomeranz: It's the headline with the companies. And then, you know, everything that Alliant has done as our key partner. There was another power company, i'm not going to say who it is, but they told me about two years ago that Google's not coming, and whoever the other company is, we know now it's QTS, they're not coming because the rates are not competitive enough to get those companies here. So, I just also appreciate the willingness of Alliant Energy to be competitive, and it's for their own benefit. You know, they're a publicly-held company, stock-owned company. But without them, we would not be where we are today. So, it's exciting times.

Host: So, we're talking about workforce development earlier, and somebody had mentioned housing. Obviously, this is an important topic. And I want to mention the relationship that the city has had and continues to have with the local and regional development community. You know, you have big wins. That brings people to town. You start to focus on workforce development that brings more people to town, where they're going to live. And, you know, shout out to the development community. You know, they work with us, and we work with them. And I think that's been an important relationship as well.

Mayor Tiffany O'Donnell: Without a doubt. We are not unlike, you know, so many cities across the country. We just need more housing. Period. And I think maybe when rates go down, hopefully maybe they will by the time this airs, you know, houses might start moving a little quicker. But right now, people aren't moving out.

Host: Yeah.

Mayor Tiffany O'Donnell: And add to that, multifamily housing, I think makes more financial sense for developers and builders. So, we've got lots of multifamily, which is great. And we got to make sure we're building those single family homes. So, I think, I really am grateful that the city stepped in for affordable housing in many ways. But particularly, you know, the ROOTs, ROOTs 2.0, where we step in and support developers—was it 150,000 off the top?—to help make those single family homes make sense to them.

Host: Well, those multifamily housing developments, I get a lot of questions about those when I'm out around town and one thing I hear is where are all these people coming from? Well, I'm telling you, the vacancy rates citywide according to the housing study and there's going to be a new one coming out soon is 1.5%, a healthy market. And again, not to say that ours isn't, but you know, uh, we are more around vacancy rates of 4-5%.

Mayor Tiffany O'Donnell: Wow. We're low.

Host: Yeah. And so, one thing , you know, I just wanted to point out was that there are lease up periods where you have these new developments that come online and it takes them a year or so to lease up. But, you know, with an average citywide of 1.5%, there's absolutely still a need and something we're focused on.

Mayor Tiffany O'Donnell: Wow. That's phenomenal. I didn't know it was that low or that high compared to—well, I mean, people are living here. That's fantastic.

Host: Well, I think we've covered almost everything that I wanted to cover today. What are you looking forward to coming up?

Mayor Tiffany O'Donnell: One of the things I consider my job as mayor is just to remind people, you know, about how great it is and what a great time it is to be in Cedar Rapids. We know cities ebb and flow. This is a great time to be here. And I think the pressure, I feel, if any, is to make sure we leverage the moment and leverage the opportunity knowing how fast things can change. We've seen it happen.

So, you know, if I could just impart any wisdom to everyone out there is just to really enjoy the moment and be a part of it. And, you know, when we look for participation in downtown events and community events, we hope to see you there, because it really is a city that we want.

Host: Yeah, yeah. Ultimately, economic development is about creating opportunities for businesses, residents, neighborhoods, and, you know, how do we ensure that there's as much value in that as possible. You know, Jeff, obviously you know that you've been doing this for a long time. Anything you're looking forward to or any closing thoughts as we get ready to step away here?

City Manager Jeff Pomeranz: Well, you know, we've talked about this a lot. But, you know, we're not a new community. We're 150 plus years old. The best is yet to come. We have so many exciting projects right now. We have so much momentum. Our quality of life is going to continue to improve. So, I think that, you know, watch out for the next 1500 years because Cedar Rapids is, and is going to be to a greater level, you know, one of the top communities in the United States. So, we already feel that way, but I think there's going to be more and more evidence of that to the citizens.

Host: Well, City Manager Pomeranz and Mayor O'Donnell, thank you. This was fun. And I hope people enjoy it. And thank you both for joining me.

Mayor Tiffany O'Donnell: Thanks for all you do.