Iowa Board of Regents members voted unanimously Dec. 3 to approve Iowa State University's site-development lease proposals for the CyTown project, a multi-building development the university and its private partner say will produce significant long-term revenue.

Amy, an Iowa State presenter, told the board the proposals cover building plans, financing structures and pro formas for six components of the project and that the hotel will be brought back to the board later. "As indicated in the summary pro formas contained in exhibit B, the CyTown development is projected to generate $184,000,000 net revenue to the university over the next 30 years," she said.

Why it matters: Board members said the project represents a long-term revenue opportunity for Iowa State that also carries developer risk. Regent Robert Kramer and Regent Nancy Dunkel, who served as the board's representatives on the Sciton management committee, said they had vetted the pro formas and found them conservative. "They're projections, but we feel that they're conservative projections," Kramer said.

Details and safeguards: Regents and university staff said financing will come primarily from the developer Goldenrod and third-party debt secured by Goldenrod; Goldenrod must locate and retain tenants and collect agreed payments-in-lieu-of-taxes (PILOT) to support debt service. "Our developer, Goldenrod, really has a lot of risk here," a regent said, describing the commercial incentives that obligate the developer to find suitable tenants. Board members also noted the City of Ames requires audited financial statements from the research park as part of oversight, and that staff will provide those reports on a multi-year cadence.

Separately, Iowa State officials said the SideRide (also spelled CyRide in the record) program recently received a $14,000,000 federal infrastructure grant unrelated to CyTown but beneficial to the broader campus-adjacent development. "We just did receive on CyRide a $14,000,000 infrastructure grant from the federal government," Mike Norton said.

Board action and next steps: Regent Nancy Dunkel moved to approve the site-development lease proposals; Robert Kramer seconded. The board took a roll-call vote and approved the motion unanimously. The university will return to the board with the hotel design and any subsequent contract steps, and the investment and oversight provisions discussed during the meeting will guide board monitoring going forward.

Provenance: Board presentation and discussion introducing the CyTown proposals and pro formas; question-and-answer on financing and federal grants; motion, second and roll-call vote approving the proposals.