Pella approves $500,000 state tourism grant for community center and advances urban renewal amendment

The Pella City Council approved a grant agreement with the Iowa Economic Development Authority for $500,000 toward the Pella Community Center Innovation Project and voted to amend the Ley urban renewal plan to add territory and allow tax-increment financing for planned infrastructure projects.

Staff told the council the community center project totals roughly $9 million and the state grant amount under consideration is $500,000; contract documents list a completion date of Dec. 31, 2027. Marion County is contributing $25,000 toward the project as part of the local participation discussion. Staff recommended approval of the grant agreement and the council voted to accept the grant.

Separately, staff presented Amendment No. 2 to the Ley urban renewal plan to add green-shaded territory to support two projects tied to the city's economic development strategy: the University Street/Baseline Drive extension (an estimated ~$7.5 million project including sanitary sewer for a recreation center) and reconstruction of Old Highway 163 (about $2.5 million). Staff said the amendment will allow use of tax-increment financing to build public infrastructure to spur commercial and industrial development. The council approved the resolution adopting the amendment and held the first reading of Ordinance No. 1084, which modifies how property taxes in the urban renewal area are deposited to a special fund to pay related indebtedness.