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Urbandale hires AECOM to verify Merle Hay sales-tax allocation; city to cover $27,900 fee
Summary
Urbandale hired AECOM for $27,900 to update the sales‑tax economic analysis for the Merle Hay Reinvestment District, a study the city says is needed after changes to the project and to verify a previously allocated $26.5 million under the Iowa Reinvestment Act.
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Urbandale officials approved hiring AECOM on a $27,900 contract to reanalyze how much incremental sales tax the Merle Hay Reinvestment District is likely to generate, Assistant City Manager Curtis Brown told the City Council on May 5.
The analysis is intended to verify an earlier allocation of $26.5 million in incremental sales tax tied to an application under the Iowa Reinvestment Act administered by the Iowa Economic Development Authority (IDA). Brown said the Merle Hay project has changed substantially since the city’s 2022 application, so a new independent estimate is needed to inform IDA staff recommendations and the IDA board’s final allocation.
Brown said the Merle Hay site is roughly a 75‑acre campus administered through a 28E intergovernmental agreement among Urbandale, Des Moines and Polk County. AECOM — a consultant that previously worked on the Downtown Urbandale master plan — will model retail and sports‑venue sales‑tax potential and deliver a draft report by mid‑June and a final report by June 30. The contract includes an optional $2,500 per‑person fee for in‑person presentations if requested.
Council members asked whether Urbandale would cover the consultant cost. Brown said Urbandale is paying the fee and described it as part of due diligence: the city has led the revitalization work for the west side of the mall campus and expects the analysis will better position the amended application with IDA staff. Brown estimated IDA would consider the updated analysis at a July meeting, depending on timing and staff review.
Council member discussion also touched on how the IDA previously allocated the region’s $100 million pool across multiple projects and that Urbandale’s original application received about a quarter of that sum. Brown said the new analysis will be independent and “clear‑eyed,” and the staff will accept whatever result AECOM produces and use it to inform next steps with IDA.
A motion to approve the resolution authorizing the AECOM contract passed on a council vote. Staff said the consultant agreement will be executed promptly so the study can meet the mid‑June timeline.

