CEDAR RAPIDS, IA – The Cedar Rapids Area Chamber of Commerce in conjunction with Priority One is releasing the results of an economic impact study conducted by Iowa State University. The economic impact analysis studied the consolidation of Physicians’ Clinic of Iowa (PCI) into one central location.
PCI employs 350 workers producing $63.5 million in direct output. In addition, $10.8 million in indirect activity is stimulated among all suppliers to the clinic, supporting 68 area jobs and $3.76 million in labor incomes. The combined direct and indirect labor incomes provides $25.1 million in induced transactions in the Linn County economy. The total regional output from PCI is nearly $100 million.
The consolidated clinic, referred to as the Medical Mall, creates future growth opportunity for PCI. PCI looks to create 50 new jobs as a result of the Medical Mall. The net increase in medical services in the region would produce a project $14.2 million in additional regional output, $7.1 million in labor incomes and the creation of 44 indirect and induced jobs.
“The Chamber Board of Directors is fully supportive of the medical district and after reviewing the impact PCI has within the community, it is clear this project could launch the development of the district,” states Brad Hart, Board Chair, Cedar Rapids Area Chamber of Commerce.
The impact analysis also evaluated the impact of the $44 million in construction expenditures to build the 220,000 sq ft facility. Although the project would not result in expansions within the construction industry, the project would require 277 workers who would make $16.23 million in labor incomes.
“Priority One will be positioned to market and support the growth of the medical district in Cedar Rapids,” shares Mark Seckman, President, Priority One. “The existing office space that could come online due to PCI’s consolidation will be an attractive option to many companies in the healthcare industry.”
The increased taxable valuation was also calculated in the study. The $44 million facility would provide $1.598 million annually in total property taxes to all taxing jurisdictions and of that $669,513 would go to the City of Cedar Rapids.
The study was commissioned by Priority One and completed by Dave Swenson, Department of Economics at Iowa State University. The entire report can be found on-line at www.crmedicaldistrict.com .