Forty workers at Knutson Construction Company’s Iowa City office were laid off Thursday. The entire office will close at the end of the year.
The announcement came on Sept. 5 from the company’s Chief Executive Officer John Curry. The Minneapolis-based company has completed a variety of contracting projects around the Midwest, including Minnesota, Wisconsin, and Iowa.
The Iowa City location first opened in 1982 and has since left a significant impact on Eastern Iowa.
“Iowa has long been an important market to us, and the closing of our office does not change that fact,” Curry wrote in his announcement.
Knutson has completed several projects throughout town and at the University of Iowa over the past 42 years.
According to Knutson’s website, the company has completed East College Street Student Housing, the UI Psychological and Brain Science Building, UIHC Central Sterilization Services Facility, MidWestOne Bank, Kinnick Stadium’s South End Zone, and the UI Iowa Memorial Union Renovation, among others. Knutson is also actively renovating the UI’s Football Performance Center Locker Room.
However, tensions arose between the UI and Knutson after the construction company was hired to restore and improve the Old Capitol and its gold dome. Knutson completed work in 2004, but as time progressed, the UI continuously found issues, and the construction company reportedly refused to fix them. The UI then filed a lawsuit against Knutson.
The UI later filed another lawsuit in 2022 against Knutson after issues arose with the UI Stead Family Children’s Hospital. Multiple windows in the hospital were said to begin cracking and bubbling.
Despite no longer having a physical location in Iowa City, the company will still continue to work on projects and connect with clients throughout Iowa from additional offices located in Minneapolis, Mankato, and Rochester, Minnesota, wrote Curry.
“This was a difficult decision as we understand the impact it has on our 40 employees based on this location, but it was the right decision for the business as we shift our company’s strategic approach to allow for new opportunities to grow and expand,” Curry wrote.
President and CEO of Greater Iowa City, Inc. Nancy Bird discussed the importance of supporting local companies and businesses around Iowa City during certain challenges.
“We have a lot of our companies here that really want to get engaged to support economic resilience across the county,” Bird said. “We have a number of innovation councils that have been set up so that they can get involved in what’s happening around the county and some of the work that we do.”
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Greater Iowa City, Inc. has supported local communities and businesses since 2023, when Iowa City Area Development and Iowa City Area Business Partnership merged to create Greater Iowa City.
The company ensures that businesses and companies are well supported by hosting frequent lunch connections in North Liberty, Coralville, and Iowa City, where businesses can learn about updates and information from the cities. The company also convenes innovation councils to get businesses engaged and involved, while also advocating for policy priorities that support the community, Bird said.
Bird also shared that Greater Iowa City is in the process of opening a new Business Resource Center, which will help provide a space where businesses facing challenges can go to get support, education, and connect with mentors to help them address any struggles they are experiencing.
Kelly Hayworth, Coralville’s City Administrator, expressed his disappointment with the closure of Knutson and how it will impact Coralville.
“[Knutson] has done several projects over the years; they’ve been part of our community for some time, and it’s disappointing that they will be closing up,” Hayworth said.
Hayworth highlighted the negative effects on local construction projects, including reduced competition and a smaller labor pool for future projects.
“It’s important to have options for new companies that are coming in or existing, both government and private businesses, to have options for doing construction,” Hayworth said.
Despite these concerns, he is confident that Knutson will satisfactorily complete ongoing projects.
Knutson is actively working on the Clear Creek Amana Elementary School and the Iowa City School District Northwest Middle School projects in Coralville. Several completed projects include the Coralville Intermodal Facility, Iowa River Landing West Parking Ramp, Riverview Square, and more.
“Our top priority over the next several months is to ensure that this is a smooth transition for our team, clients, and partners and to ensure that we continue to operate in alignment with our core values as an organization — operating with integrity and delivering an outstanding construction experience our clients and people deserve and have come to know for more than 113 years,” Curry wrote.