Board of Regents approves Iowa State’s SciTown site-development leases, cites $184 million projected net revenue

Iowa Board of Regents members voted to approve Iowa State University’s site-development lease proposals for the SciTown project, backing a plan that the university and developers say will produce substantial revenue for the campus. The board approved the motion after presentations and questions from regents and university staff.

Amy Clays, offering the university’s presentation, said the proposals cover six components — a food-and-beverage anchor, two office-and-retail buildings, two site-town suite buildings, an amphitheater and a common amenity area — and that the hotel component remains in design and will be returned to the board later. She said financing combines university land, developer contributions from Goldenrod and debt financing secured by Goldenrod.

Why it matters: The university’s summary pro formas project $184,000,000 in net revenue to Iowa State over 30 years, a figure Regents Kramer and Dunkel said they vetted and view as conservative. Regents emphasized oversight mechanisms: Goldenrod, the developer, bears market and leasing risk; tenant payments in lieu of taxes (PILOTs) and lease payments are primary revenue sources; and the city of Ames requires audited financial statements from the research park (every two years), which will provide periodic verified financial reporting.

Regent Hensley asked whether benchmarks or contractual triggers exist if project milestones are missed; regents and university staff said contracts cover expectations and Goldenrod assumes significant risk to secure tenants and revenue. Iowa State staff on the Zoom presentation (Sean Reeder and Mike Norton) noted SideRide, a related initiative, recently received a separate $14,000,000 federal infrastructure grant that is unrelated to SciTown but supports connected infrastructure.

The motion to approve the site-development lease proposals was moved by Regent Dunkel and seconded by Regent Kramer. The roll-call vote recorded yes votes from Regents Dunkel, Kramer, Hensley, Rouse, Reiswick, Gipple, Jaden and Bates; the motion passed.

Supporters singled out the project team for praise. "We feel good about it," Regent Kramer said after the vote, and credited Michael Norton, Sean Reeder, Jamie Pollard and others for the work that prepared the proposal.

Next steps: The board approved the leases; the hotel design will return to the board at a later meeting and university and developer teams will proceed with contract and implementation steps.