Council Bluffs council approves conditional consent for Iowa West hotel sale, citing community TIF protections
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Summary
The City Council unanimously approved Resolution 25-267 to give conditional consent to an assignment under the 2016 development agreement with Iowa West, after staff described safeguards that would require a buyer to assume upkeep and tax obligations and testimony from an Iowa West representative explaining the TIF design.
The Council Bluffs City Council voted to approve Resolution 25-267, granting conditional consent to an assignment under the city's development agreement with Mac Ventures LLC and Iowa West Foundation. The action allows Iowa West to move forward with a sale provided the buyer agrees to assume the developer's obligations.
City staff described the 2016 development agreement as a community-focused arrangement that combined investments in a retail spine, a full-service hotel and an athletic field house. "It was about $40,000,000 all in for the investment for all 3 of those," staff said, and the TIF and hotel-motel tax revenues were structured to flow into a reserved account earmarked for community grants and projects.
Brenda Bainewaring of the Iowa West Foundation urged council consent during the public hearing. "We don't run hotels. We're not especially good at it. ... We cannot sell this hotel without your consent," Bainewaring said, adding that Iowa West intends to return revenue from the development back to community projects.
Staff said the draft consent requires any buyer to accept obligations now held by Iowa West: continuing to pay property taxes, keeping up insurance and maintenance, submitting an annual statement, and otherwise preserving conditions that protect the city's interest. City counsel noted the TIF arrangement runs through a not-to-exceed 15-year period beginning June 1, 2020, and ending June 2034, and that the documents include caps on tax increment and hotel tax receipts.
Council moved and approved the resolution on a voice vote during the meeting'the clerk confirmed the hearing was published and no written protests were filed. Following the vote, council directed staff to continue any necessary review of future transactions for compliance with the agreed obligations.
The resolution does not change the underlying development agreement or obligate the city to cover Iowa West's prior costs; rather, staff said, it preserves a mechanism that returns incremental taxes and hotel-motel revenues to a community fund in line with the original agreement.
