The Urbandale City Council voted to approve a council letter forwarding an amendment to the Iowa Reinvestment Act application for the Merle Hay Reinvestment District to the state economic development authority. The amendment updates the project scope and incorporates a new sales-tax projection prepared by AECOM.

The amendment replaces the originally planned four-sheet hockey complex with a multiuse arena, adds a volleyball facility and expands pickleball programming while keeping other elements — a campus hotel, new retail parcels and mall interior improvements — in the overall plan. Aaron Young, Urbandale’s economic development director, said the updated AECOM analysis estimates about $1.6 billion of incremental retail and event-related sales over 20 years, translating to roughly $64 million in potential state sales-tax rebates under the IRA program’s 4% rebate formula.

The amendment also requests schedule changes for conditions subsequent, including capital sources identified to the state by March 31, 2026, a hotel developer identified by 2027 and financing completed by 2028. Councilors also approved removing a longstanding condition that redevelopment of the Merle Hay Tower be completed as a requirement of the district’s award; staff said the tower condition is the most uncertain and its removal would reduce the risk of the state rescinding the award later.

Young and other staff described the amendment as an update rather than a change in overall intent. “We are still requesting the 26½ million dollar allocation; that ask is unwavering,” Young said, referring to the cap on the state rebate allocation the district currently holds. He added that the AECOM projection is lower than the original estimates used in the initial IRA plan but that the district remains viable under the existing allocation.

Council members asked about differences between the mall owner’s internal estimates and AECOM’s independent model; Young said both sets of information would go to the Iowa Economic Development Authority and that the state asked for this independent sales analysis before it considers the amendment. Liz Holland of the mall development team was present; staff said the 28E entity representing the public–private district is coordinating submittal to the state.

The council approved the motion to forward the amendment by voice vote after a second by Councilmember Cacciatore. Next steps, staff said, are an anticipated IEDA review (likely in September) and then detailed due diligence and financing discussions if the state affirms the amendment. Aaron Young said the local financing concept continues to rely on a municipal bond paired with the district’s TIF revenues and the future rebate stream; he estimated a possible bond par of $16–$20 million depending on market rates and payment schedule assumptions.

The council’s action was procedural: it sends the amendment for state review and does not commit the city to bond sales or final local financing until separate council approvals.

The vote followed a presentation and Q&A during which councilors expressed support for pursuing a project they described as important to the city’s economic redevelopment strategy. The council motion to approve council letter 8,262 passed on a voice vote.