Construction is expected to begin next month on a new live-work style building where a Kum & Go store once stood on University Avenue in the Drake neighborhood.

Neighborhood Development Corp. purchased the site, at 2211 University Ave., from Kum & Go in October 2022 for $300,000, records from the Polk County assessor’s office show. The convenience store chain announced in early 2022 that it was closing the store, which had been open since 1998. The building was later razed and the underground tanks removed.

Sadie Trytten, executive director of the nonprofit, said during a recent conversation with the Business Record, that ground is expected to be broken on the site where a three-story, primarily residential building will be constructed in the coming weeks.

“The lower units will be work housing, so if someone wanted to work out of there, they could have their office up front and their loft in the back,” she said. “Then there will be two more levels of apartments.”

The vacant lot has a taxable valuation of $257,000, and the building will increase the valuation of the property, benefiting the city, which provides $1 million a year to support the nonprofit, Trytten said.

The city approved rezoning the site for mixed-used in 2023. According to a building permit application filed on May 13, the three-story building would include 35 units with a mix of studio, one-bedroom and two-bedroom apartments and live-work units.

There will also be parking behind the building.

The total cost of the project is about $7.32 million. Construction is scheduled to begin in June and be complete by the end of June 2026, Trytten said.

The project received $452,000 in workforce housing tax credits from the Iowa Economic Development Authority in September 2022.

Trytten said the project was delayed because of high interest rates and construction costs, which continue to be a concern for the nonprofit, founded in 1999 with a goal of sparking neighborhood redevelopment.

She said the new building will increase access to workforce housing in the neighborhood.

“The addition of live/work units on the ground level is especially valuable, as it allows individuals to combine their living and working spaces, helping them save on rent and reduce commuting costs,” Trytten said in an email. “This innovative approach not only supports residents but also encourages more people to become part of the community. In turn, increased foot traffic from all units will help sustain local restaurants and commercial spaces, contributing to a more vibrant and economically resilient neighborhood.”

Read more about Trytten and her vision for NDC, where she became executive director on Jan. 1, in this Closer Look profile.