Council approves amended development agreement for Bombers golf complex and hotel after debate on design and incentives

Johnston City Council voted to ratify an amended and restated purchase, sale and development agreement with Johnson Golf Development LLC, approving changes that further define the Bombers golf and family entertainment facility and an upscale select-service hotel and that adjust the financial incentives offered through a tax increment financing (TIF) rebate.

Economic development staff said the restated agreement consolidates prior amendments and clarifies minimum improvements. The golf entertainment facility is now defined as roughly 80,000 square feet with at least 36 hitting bays, plus amenities such as mini golf and bowling. The hotel is described as an upscale select-service property with a minimum of 65,000 square feet and at least 100 rooms. The agreement raises the minimum full-time-equivalent jobs from 150 to 200.

On financing and incentives, staff told the council the TIF rebate cap increases from the prior $18,500,000 (over 14 years) to a not-to-exceed $19,700,000 over 14 years, with a stepped schedule: 90% rebate on the first $36,000,000 of assessed value and 100% on assessed value above that, and a new minimum combined assessment requirement for the golf and hotel of $48,000,000 (previously $36,000,000). Outlot incentive language was revised: base outlot rebates would be 50% for up to 10 years (not to exceed $3,000,000) but developers can qualify for up to 75% for a sit-down restaurant with a rooftop experience and if certain occupancy/finish standards are met.

Council members questioned a relocation of the hotel from the north to the south side of the site and the effect on Beaver Creek and the bike trail. Councilwoman Martin said she considered the change a "major redesign," adding, "It was embracing Beaver Creek, and now we've turned our back on it." Developer Alan Stoy and staff responded that many trees requested earlier would be preserved where feasible, that the developer anticipates class-A finishes and that a reforestation commitment ($50,000–$125,000) remains in the agreement. Alan Stoy said, "I live in Johnston. I do not want a concrete jungle," and said the team wants the area to be attractive.

Staff outlined performance milestones included in the agreement: a private lending term sheet by Oct. 31; documentation of construction loan financing by Jan. 31, 2026; within 90 days of obtaining financing the developer must complete foundations or order steel and execute a guaranteed-maximum-price contract for the golf facility; both hotel and golf facility have a construction completion target of December 2026, must be fully assessed to the $48,000,000 minimum by Jan. 1, 2027, operational by Feb. 15, 2027, and staffed to 200 FTEs by March 1, 2027. The developer also requested council consideration of an $800,000 drawdown on its existing mortgage with Grinnell State Bank to pay early construction expenses.

After discussion and public remarks from the developer, the council moved and approved Resolution 25-2-11. The recorded roll call in the transcript shows Council members Reddy, Burkhart, Cope and Evans voting yes and Councilwoman Martin voting no; the motion passed.