Johnston council approves amended development agreement for Bombers golf and hotel project

The Johnston City Council voted 5-1 to approve an amended and restated purchase, sale and development agreement with Johnson Golf Development LLC that redefines the scope, tax-increment financing and timelines for the Bombers golf and family entertainment project and an associated hotel.

City staff said the restated agreement consolidates prior amendments and clarifies project requirements. The document sets the golf-entertainment facility at about 80,000 square feet with at least 36 hitting bays and adds mini-golf and bowling amenities. The hotel is described as an "upscale select-service" property with a minimum of 65,000 square feet and at least 100 rooms. The developer agreed to increase the minimum number of full-time-equivalent jobs from 150 to 200.

Why it matters: The agreement alters the development's financing profile and incentives. It raises the tax-increment financing (TIF) rebate cap and the minimum assessment the project must meet, which changes projected rebate calculations and the schedule of tax revenues that will be rebated back to the developer.

Key terms and financial changes - The agreement increases the authorized TIF rebate from a prior cap of $18,500,000 to a new cap of $19,700,000 over 14 years, with a stepped schedule of rebates. Staff explained the first $36,000,000 of assessed value would be rebated at 90%; assessed value above that threshold would be rebated at 100% under the proposal. The agreement also raises the minimum assessment for the hotel and golf facility combined from $36,000,000 to $48,000,000. - The developer requested a further draw on an existing mortgage with Grinnell State Bank for $800,000 to cover early construction costs such as steel orders, switchgear and design fees; council consideration of that drawdown was incorporated into the approval. - Outlots facing Broadway remain eligible for incremental TIF incentives, but the rebate structure for those outlots was reduced in the proposed agreement to 50% for up to 10 years (not to exceed $3,000,000); a 75% rebate remains available if a qualifying sit-down restaurant with a rooftop experience is built. - The developer will either purchase a $25,000 public art piece or contribute $25,000 to a new city public art fund; staff said the fund would be used for art in the project area and that the piece would be family friendly.

Project schedule and performance milestones - For the golf facility the developer must provide a private lending term sheet by Oct. 31 (staff indicated an imminent date), and documentation of a construction loan by Jan. 31, 2026. Within 90 days of obtaining that loan the developer must complete foundations or order structural steel and sign a GMP (guaranteed maximum price) agreement with a general contractor. - Completion for the golf facility and the hotel is listed as December 2026. The properties must be fully assessed at the $48,000,000 minimum by Jan. 1, 2027, operational by Feb. 15, 2027, and staffed to 200 FTEs by March 1, 2027.

Council discussion and concerns Council member Martin said the redesign represented a substantial change from earlier concept plans and raised concerns the hotel "turns its back" on Beaver Creek and the bike trail, weakening the intended green-space connection. Martin called the current schematic "a major redesign" and said she would not vote in favor of the agreement in its present form.

Developer response and staff notes Alan Stoy, representing Johnson Golf Development LLC, and other project representatives said design changes reflect constraints, changed property availability and financing realities since the original 2022 agreement. Stoy said the team remained open to preserving trees, enhancing landscaping and moving parking to improve trail-facing views, and noted some landscape work is planned for the end of construction to avoid damage during buildout.

Josh (economic development staff) described the document as a restatement that consolidates prior amendments and said this would be the 10th amendment/iteration of the development agreement since the initial 2022 deal. Staff recommended approval.

Vote and next steps The council approved the amended and restated agreement by a 5-1 roll call (Council member Martin opposed). With approval, staff will proceed with the financing steps and the developer may draw on the mortgage per the agreement terms; detailed site plans and final architectural drawings will return to the city through the site-plan review process, where council members said they expect further opportunities to influence design details.

Provenance: the council opened the public hearing and staff presentation, and the subsequent roll-call vote and discussion appear in the meeting transcript between the staff presentation (beginning at the public hearing for the development agreement) and the roll-call vote closing the item.