Pella council expands urban renewal area and accepts $500,000 state grant for community center project

The Pella City Council approved an amendment to the Ley urban renewal area and authorized a state Community Attraction & Tourism grant to support the Pella Community Center Innovation Project.

Staff explained that the council is adding territory to the Ley urban renewal area to capture tax-increment revenues for infrastructure tied to two projects: the University Street/Baseline Drive extension (staff estimated the combined project at about $7.5 million including engineering, land acquisition and sanitary sewer work for a recreation center) and reconstruction of Old Highway 163 (about $2.5 million). "We thought it was appropriate to proceed with an amendment to add two projects that we're going to talk about this evening," staff said.

Council also approved Resolution No. 7018 authorizing execution of a Community Attraction and Tourism grant agreement with the Iowa Economic Development Authority for the Pella Community Center Innovation Project. Staff said the grant amount is $500,000 toward an approximately $9 million project; Marion County will contribute $25,000 as a local match. Contract documents with the state list a completion date of Dec. 31, 2027.

Council approved Resolution No. 7001 designating the additional urban renewal territory and advanced Ordinance No. 1084 (first reading) amending prior urban renewal tax-allocation language so the city can capture revenues for these infrastructure projects.

Staff said the amendment is intended to finance public infrastructure that staff believes will facilitate commercial and industrial growth in the city. The council voted to proceed with the urban renewal amendment and the grant authorization; staff will return with any related project agreements and financing details required by state law.