Find out what’s going into Coralville’s Iowa River Power building
The Iowa River Power restaurant was a community staple for decades in the Coralville and Iowa City corridor.
Now, it will get a new life and owner, with a new restaurant to open in 2026.
According to Corridor Business Journal, the Illinois-based company Old Gold LLC bought the building for approximately $3 million in September, nearly a year after the picturesque restaurant closed in November 2023.
The historic building located at 501 1st Ave. in Coralville was home to the Iowa River Power Restaurant for 46 years until Danise and David Petsel, the restaurant’s owners and operators for 20 years, received an eviction notice from Randy Ward, the former owner.
Ward was leery of the building’s structural issues.
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“The fact is that place could implode tomorrow,” Ward said in a previous interview with the Press-Citizen. “It is so tired and worn out that it just needs to be remodeled. I’m embarrassed to say I own it.”
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New building owners approved for tax rebate
At the Oct. 22 Coralville City Council meeting, the board approved an amendment to its urban renewal plan to allow the city to give tax rebates to the new owners. City Attorney Kevin Olsen noted that the current tax bill on the property is about $88,000, and the 100 percent rebate will apply only to any additional tax revenue generated. However, this is just a preliminary step.
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Yet-to-be-named restaurant will maintain architecture and charm
Old Gold LLC plans to maintain and restore the historic architecture of the Iowa River Power building. To qualify for specific tax credits, Old Gold LLC must meet specific requirements, and a state department must review renovation plans to align with state and federal guidelines. The company expects to start construction in 2025, focused on restoring original glass and windows.
They plan to keep the iconic brick walls and exposed steel while emphasizing the structure’s “industrial remnants.”
“This future restaurant is more than just a business endeavor for us,” said Mark Kaufman, Managing Partner of Old Gold, LLC said in a news release. “It’s about honoring the past and giving back to a community that means the world to us. We want to create a space that feels like home, where people can gather, celebrate, and connect over great food. Once we have determined our restaurant partner, we look forward to providing further details as they become available.”
The yet-to-be-named restaurant will open in late summer 2026. It will “honor and reinvigorate the legacy of the Iowa River Power Restaurant.”
Old Gold LLC and the City of Coralville are expected to reach a development agreement in the coming months.
“We are just really excited about the new group purchasing the building, not only purchasing but also making the commitment that they want to do a historic renovation,” said Coralville City Administrator Kelly Hayworth. “Knowing that the building will be upgraded and a new restaurant opening there is a fantastic opportunity.”
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The historic power of the Iowa River
The Iowa River Power building was originally home to the Iowa River and Power Company as the first power plant for the Coralville Community. It first opened in 1886. The hydro plant fueled Coralville’s growth until 1968 when it switched to Mid-American Energy. Coralville subsequently purchased the historic building for $1.
Nearly a decade later, in 1977, the building transformed into the beloved Iowa River Power Restaurant, becoming an iconic gathering spot along the Iowa River.
Iowa City Press-Citizen reporter Ryan Hansen contributed to this article.
Jessica Rish is an entertainment, dining and education reporter for the Iowa City Press-Citizen. She can be reached at[email protected] or on X, formerly known as Twitter, @rishjessica_
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