Pella council adopts "Imagine More" urban renewal plan, advances TIF ordinance amid public concern

The Pella City Council voted to adopt the Imagine More Community Urban Renewal Plan and advanced an ordinance establishing the mechanism to capture future incremental property taxes, after a public hearing marked by neighborhood concerns and debate among council members about timing.

City staff presented the plan as a long-term, concept-level framework for redevelopment of a portion of Central College’s campus, describing roughly 35 acres of potential redevelopment, a concept for up to 1,350 rental units and 120,000 square feet of commercial space, and an estimated potential private investment of approximately $345,000,000. Staff emphasized the urban renewal plan is a planning document required under Iowa law and does not itself obligate the city to any development or incentives.

Why it matters: The plan would create a legal framework that, if followed by individual development agreements and debt certification, allows the city to capture tax increment financing (TIF) proceeds from future taxable redevelopment on formerly tax‑exempt college land. Council members and residents debated whether approving the plan now preserves optionality ahead of expected state-level changes to TIF rules (Senate File 2472) or whether the city should wait for clarity.

Resident concerns: Anna Rupert, a nearby homeowner, urged caution and asked whether the proposal aligns with documented community need. “Are we building the housing for our community needs or simply the housing that's easiest to develop and profit off of?” she asked, noting the Marion County housing assessment estimated demand for about 690 rental units countywide and questioning whether a 1,350‑unit concept is proportionate and whether public subsidies are necessary.

Staff response: City staff (Mike) repeatedly framed the action as a two-step process: adopt the urban renewal plan as the planning phase, and only later, if and when a development agreement and debt certification occur, would the ordinance and TIF mechanisms take effect. “This is a planning document,” he said. “It doesn't obligate the city to anything.” Staff also noted a December 31 deadline for passing urban renewal plans and associated ordinances if the city wants to preserve the current school share of TIF under existing state rules.

Council split on timing: Some council members said putting the plan in place now preserves the city’s ability to consider redevelopment options if legislative changes reduce TIF availability; others said they prefer to pause until the implications of Senate File 2472 are fully understood and recommended additional training the council is already pursuing. Several members urged attendance at an Iowa State webinar and the attorney-led training scheduled for July 15.

What council approved: The council adopted Resolution No. 7092, determining the area appropriate for urban renewal and adopting the Imagine More plan. The council also advanced Ordinance No. 1090 for its first reading, a procedural step that would enable capture of incremental property taxes only if future development and debt certification occur. Both actions passed on roll call.

Next steps: The ordinance requires additional readings before it would take effect; any actual development agreement and application of incentives would return to the council for separate consideration. Staff and council members said additional trainings and future hearings will follow as more state guidance and details emerge.