Indianola council adopts multiple urban renewal plans, approves development agreements and property transfer

Indianola's City Council on Dec. 2 approved a set of urban renewal actions and development agreements aimed at advancing several large private and mixed-use projects while preserving the city's ability to use tax-increment financing (TIF) for public improvements.

The council adopted Amendment No. 8 to the Hillcrest Downtown Unified Urban Renewal Plan and approved new urban renewal plans and related development agreements for Kentucky Ridge North 6th Street, Summercrest Hills, and other developments. The council also approved a development agreement with IDG3 LLC (replacing Invigorate Development Group LLC) and set a rental rate for use of the IWC wellness campus by a proposed fieldhouse; it approved a separate development agreement with Inception Group LLC. The council moved forward with a resolution to transfer certain county property as part of a longer-term library relocation strategy and approved a preliminary plat for Biggard Commerce Park.

Why it matters: the votes formalize the mechanisms Indianola will use to collect and direct incremental tax revenue generated by new development to repay infrastructure costs and to support public projects. The measures underpin several projects — including a proposed library site, a regional fieldhouse and recreation amenities, commercial pads, and street and utility work — that city staff and developers say are needed to support growth north of Hillcrest and along Highway 92.

Council and staff said the actions create authority and financing tools but do not automatically spend money. City attorney Nathan Overberg told the council the plans are a framework: "the fact that these additional projects are not in this initial plan is not a concern. It's not a limitation," and he added projects would still require separate identification, incurring debt and certification before any TIF is used.

Key items and debate

Hillcrest amendment 8: Staff presented Amendment No. 8 as housekeeping to bring the Hillcrest Downtown Unified Urban Renewal Plan into compliance with state code changes, tidy parcel legal descriptions and move certain areas in and out of existing TIF boundaries. Council approved the amendment and related ordinance votes that govern division of revenues under Iowa Code section 403.19.

Kentucky Ridge / Inception Group: The council created the Kentucky Ridge North 6th Street Urban Renewal Area to allow segregation of tax increment for reimbursing developer costs already incurred for sanitary and storm sewer work. Staff and developer representatives sought clarity about the potential scope of TIF support and whether a traffic study reimbursement could be added later. Attorney Overberg advised that because the plan and development agreement listed a specific not-to-exceed TIF amount (cited in the meeting as $837,000), any addition would require either restarting the public notification process or finishing the current agreement and amending it later. The council approved the urban renewal plan and the related division-of-revenue ordinance, and it approved the development agreement with Inception Group LLC.

Summercrest Hills: Council adopted the Summercrest Hills Urban Renewal Plan, a large area north of the IWC (wellness campus) that includes a fieldhouse, sports complex, pad sites for hotels/restaurants, and residential uses. Discussion focused on a city-managed road (North 7th connection) identified in the plan with a not-to-exceed figure in the plan (up to $3 million in the document). Council members expressed concern about public perception of a high planning-level cost and stressed they would retain review and approval authority on final design and bond issuance. Staff said the plan intentionally included a higher estimate to avoid repeated amendments if bids or final costs exceed initial estimates.

IDG3 / fieldhouse rental rate: The council considered a development agreement with IDG3 LLC for a fieldhouse and related facilities and debated a proposed rate for use of the IWC wellness campus courts by visiting tournament teams. Developer representatives asked for a fixed rate to include in the agreement so they could finalize commitments. After public discussion (including developer Justin Brown's explanation of how tournament weekends would bring visitors and revenue to the wellness campus and the community), the council voted to insert a $25-per-hour rental rate into the development agreement for a five-year term and approved the development agreement.

Property transfer with Warren County: The council held and closed a public hearing and approved a resolution authorizing the execution of a property exchange agreement with Warren County. Part of the exchange touches the Masonic Temple building; Simpson College had a first right of refusal that staff said the city extended for consideration as the plan for the library and related redevelopment moves forward.

Biggard Commerce Park: The council approved a preliminary plat for Biggard Commerce Park (eight lots and a stormwater outlot) just south of Highway 92, authorizing the platting and extension of utilities for future commercial and industrial development.

Direction on regional tourism membership: Council members questioned the local return on investment from membership in the Greater Des Moines Convention & Visitors Bureau. The council gave direction to staff to provide official notice of intent to withdraw from the regional agreement (an 18-month notice period applies) and asked staff to bring a resolution to the next meeting.

Votes at a glance

- Amendment No. 8 to the Hillcrest Downtown Unified Urban Renewal Plan (resolution): approved. (Motion and roll-call vote recorded in meeting.) - Ordinance — division of revenues under Iowa Code 403.19 for Hillcrest amendment: passed (first/second readings as required by code; votes recorded). - Kentucky Ridge North 6th Street Urban Renewal Plan (resolution): approved. - Ordinance — division of revenues for Kentucky Ridge plan: approved. - Development agreement: Inception Group LLC (Kentucky Ridge): approved. - Summercrest Hills Urban Renewal Plan (resolution): approved. - Ord. — division of revenues for Summercrest: approved. - Development agreement: IDG3 LLC (fieldhouse/pickleball/pads): council approved insertion of a $25-per-hour rental rate (five years) for IWC court use and approved the development agreement. - Resolution authorizing transfer of real property to support the library/land exchange with Warren County: approved. - Preliminary plat: Biggard Commerce Park, plat 1: approved. - Direction: staff to prepare notice/resolution to exit Greater Des Moines Convention & Visitors Bureau (18-month notice to apply).

What council members and developers said

Developer Justin Brown described the proposed fieldhouse and the planned weekends of play, saying the $25 hourly rate would represent about $7,200 annually and would bring thousands of visitors to the wellness campus over 24 tournament days; Brown said: "We're not asking for a lifetime agreement. We're asking for a 5 year agreement." Resident and developer Lee Adams questioned earlier statements he said were made about the city's bonding capacity: "I was told the city was broke, no bonding ability," he said, urging clarity on what the city could fund.

Next steps and limits

City staff and the council emphasized the distinction between adding a plan/authority to use TIF and actually spending money. Overberg reiterated that before TIF would be used on any specific project the council would need to identify the project in the plan or an amendment, incur debt and certify it, at which point the county would begin dividing revenues. Final project designs, construction contracts and bond issuance will return to council for approval.

Provenance

This article is based on council discussion and votes recorded in the Dec. 2, 2024 Indianola City Council meeting. Topic introductions and last related remarks in the transcript include the public hearing opening for Hillcrest Amendment No. 8 (transcript excerpt: "I need a motion to open the public hearing on the proposed amendment number 8 to the Hillcrest Downtown Unified Urban Renewal Plan in the city of Indianola, state of Iowa.") and the later votes on the Kentucky Ridge and Inception Group items and the IDG3 rental-rate motion.

Ending

Council members said they will continue project-level review in coming meetings; staff will prepare required amendments, development agreements and the exit resolution for the Greater Des Moines visitors bureau for the next meeting cycle. Several council members said they expect future meetings to include more granular cost estimates and design approvals before the city incurs or certifies debt.