The state of Iowa has officially agreed to give Des Moines $23.5 million to help fund the sprawling Capital City Reinvestment District — the jewel of which would be the long-awaited downtown Des Moines soccer stadium.
The Iowa Soccer Development Foundation announced in August that their application had been formally submitted for the Iowa Reinvestment District funds, which would come from a share of sales taxes generated by the stadium and other improvements.
In talks since 2021, the 73-acre redevelopment district spans a former superfund site between the Raccoon River and Martin Luther King Jr. Parkway south of downtown; tracts in the adjacent Gray’s Landing development; and sections of downtown’s Western Gateway.
More:Timeline revealed for downtown Des Moines soccer stadium and plaza
The Iowa Economic Development Authority Board voted to award the the incentives Friday morning after a brief discussion. It’s the last stamp of approval the project needs from the state.
“This is such a transformational project for both Des Moines and the state of Iowa. I couldn’t be more pleased that we’re to this point today,” IEDA Director Debi Durham told the Des Moines Register. “It’s great news.”
The board also established deadlines for the the city of Des Moines to show that they and their development partners have the money for the kitchen sink of projects they’ve proposed, including:
The city of Des Moines will also be expected to update the IEDA annually on their progress.
The district’s “commencement date” — when the Department of Revenue begins collecting the sales tax and hotel/motel tax generated within the area’s boundaries and redistributing a share to developers — will be Jan. 1, 2028.
Construction is expected to last a decade. Despite the timelines laid out in the City’s application to the state, the Iowa Soccer Development Foundation has said it won’t begin until a nearly $20 million gap is filled in the funding for the $95 million stadium.
Krause+, development arm of the Krause Group, former owner of the Kum & Go convenience store chain, will build the stadium.
If any projects fall behind significantly, it could slow the return of the incentives promised by the state.
“The commencement date will come no matter what. That’s the law; we cannot change that,” said Alaina Santizo with IEDA. “If they have any projects that are complete, they could begin pulling revenue. If they aren’t, then no revenues will flow until they do get something online to start generating sales tax.”
Addison Lathers covers growth and development for the Des Moines metro. Reach her at ALathers@registermedia.com and follow her on Twitter at @addisonlathers.
(This story was updated to add a video.)
