In just two years Jessica and Austin Wood purchased and transformed a vacant piece of Clear Lake’s downtown history, the former two-story Cerro Gordo State Bank/Corner Drug building on the corner of Main Avenue and 4th Street, into new housing and new retail business. The apartments were completed in May 2023 and were all rented out by June 1.
“We loved the architecture of the building… and Austin would oftentimes comment on all of the architecturally unique features,” said Jessica Wood. That was part of the reason why the couple, who own AirBnbs and long-term rental units in town, decided to tackle the daunting project of breathing new life back into the building.
The couple purchased the building in the spring of 2021, with Jessica posting on social media shortly after that the main level would be for rent soon. Demolition was underway as inquiries began pouring in and the new retail space construction was designed around the tenant’s needs.
By fall of 2021 Amanda Krumweide’s “White Barn Picket Fence” photography and farmhouse decor and “Nash & Ivy” jewelry (now the home of Josh Reindl’s “14 Karat” men’s clothing boutique and body piercing parlor) occupied the spaces facing Main Ave. For that one remaining space on the corner of 4th and Main, Jessica said they had just one condition. “We didn’t want anyone to remove the original Bastian Blessing Soda Fountain from the original soda fountain area – wewouldn’t rent the space to anyone who wasn’t going to integrate that. Since we didn’t find anyone, we decided to open Charlie’s Soda Fountain [ourselves],” she said.
The business was named after their daughter Charlie and Jessica’s father Charlie, who passed away in 2016. “My dad loved going to places named ‘Charlie’s,” Jessica said.
It was now time for phase two – redeveloping the upper l,000 square feet of space, which, according to the building’s original circuit panel, with accompanying list of business owners in 1938, showed six office spaces.
Not quite knowing where or how to start, Austin said his wife Jessica got some help from Melissa Fabian, owner of Simply Nourished in Mason City and Clear Lake, who had just undergone the process of turning unusable space above her store into apartments. “She did an amazing job over there [Mason City]. So she was an inspiration for this,” Austin said.
With Jessica as the Developer, the Woods worked with Atura Architecture to draw up the plans and then four construction companies submitted bids with Wagoner Construction, out of Austin, Minn., winning the contract with a bid of $1.1 million.
A Community Development Block Grant (Coronavirus Housing Conversion Grant) administered by the Iowa Economic Development Authority using federal funds earmarked for Covid-19 relief, was awarded to assist in the development of second floor residential apartments. The Woods received the maximum award of $500,000.
Myrtle Nelson, executive director of the North Iowa Area Council of Governments (NIACOG) assisted with the grant process knowing Iowa was interested in addressing workforce and affordable housing shortages. Iowa Governor Kim Reynolds chose to funnel federal CARES Act money earmarked for Covid 19 relief into addressing these needs.
The City of Clear Lake served as the pass through entity for the grant while Clear Lake Bank and Trust loaned the remaining $600,000. Both the Woods have commented that Clear Lake has been wonderfully supportive of their project and that all the separate entities, including NIACOG, the architects and builders, have been exceptional to work with.
By the time the Woods were finished, six separate offices had become a spacious 2-bedroom apartment with an original window space that looked out to the lake; a second 2-bedroom apartment and a 1-bedroom apartment, which are now called “Lake Lofts.”
At the end of the upstairs hallway, an old ladder leading to a small roof access was replaced by a staircase, “….for a possible roof feature in the future,” Jessica said.
“This was an outstanding project that has received tremendous favorable public response. The City and the Woods partnered in numerous ways to make it a reality. It had sat empty for several years,” Clear Lake City Administrator Scott Flory commented. “Not wanting to be a ‘status quo’ community, several leaders on the Council pushed to assist the Wood’s to help this project and alleviate the stagnancy. So, that leadership was greatly valued by me and many others.”
The renovation of the former Corner Drug store in 2021 required substantial electrical upgrading which gave the City the opportunity to do some utility upgrading of their own. “In conjunction with that project, the city and Alliant energy partnered to make various additional improvements, which all together resulted in the overhead electric lines in the east-west alley being buried and those very large poles that were in the alley, between fourth and fifth streets being removed,” Flory said.
“They tore up this whole alley and they redid some of the sewer. And we got a whole new water line in for a big sprinkler system [for the businesses and apartments,]” Austin said.
What was once an alley with utility poles has been turned into a plaza-like area with decorative paving, commercial grade lighted bollards and picnic tables, which provides a classy and modern look to the old building.
