Des Moines Reopens Negotiations for Pro Iowa Soccer Stadium District
The city of Des Moines and Krause Group have re-entered negotiations over a development agreement for the mixed-use stadium district around the stadium, businessrecord.com reported. On Monday, the Des Moines City Council will vote to schedule a public hearing for a development agreement with Krause+, the real estate development arm of Krause Group, while simultaneously opening a competitive bidding window for other developers.
Negotiations Resume After a $20 Million Cost Reduction
The revived discussions follow an August breakdown where city officials ended negotiations. At the time, city leaders cited a new state property tax law capping revenue growth at 2%. That legislation created a projected $12 million budget gap for fiscal year 2028 and an additional $5 million shortfall the following year. Mayor Connie Boesen stated then that moving forward under those terms would consume too much of the city’s financial capacity.
City Manager Scott Sanders pointed to a summer-long stalemate as the catalyst for improved terms. Holding firm during negotiations allowed the parties to restructure the financial framework. According to Sanders, the newly drafted agreement saves Des Moines taxpayers over $20 million in municipal contributions compared to the figures discussed a year ago.
Under terms negotiated by the city’s office of economic development, Krause+ would purchase a parcel known as the Wabash parcel at market value and lease the former Dico Inc. industrial site, also at market value. The agreement relies on city-provided incentives, including direct incentive payments and Tax Increment Financing (TIF). City documents published Thursday outline the framework, though exact financial variances from the August breakdown remain partially detailed as final terms are finalized.
December Deadlines Shape the Competing Proposal Window
Monday’s council action establishes a structured timeline for rival developers. Any competing proposal for the industrial site must clear a submission deadline of 4:30 p.m. on Dec. 4, which falls on the Friday before the planned public hearing on the Krause Group agreement.
If a rival proposal emerges that warrants further evaluation, it faces review by the city’s Urban Design Review Board during a public meeting on Dec. 15. In that scenario, the public hearing on the Krause Group plan would be pushed to Dec. 21.
Earlier in October, Hometown Soccer Holdings proposed an MLS Next Pro team for Des Moines, pitching a stadium on a surface parking lot north of the Principal Financial Group headquarters. While Hometown Holdings previously examined the Dico site for potential youth sports fields, a company spokesperson confirmed Friday that it will not submit a competing bid for the property. The spokesperson added that future plans for the MLS Next Pro team and stadium remain undetermined if the city proceeds with the Krause Group agreement.
Pro Iowa Soccer Stadium Projects Billions in Revenue
The overarching development centers on the proposed Pro Iowa Soccer Stadium, designed to host United Soccer League men’s and women’s professional teams. The Iowa Soccer Development Foundation, a separate nonprofit entity, has raised more than 90 million dollars toward the stadium construction itself.
Project leaders project that the completed stadium and surrounding mixed-use district will generate 8.8 billion dollars in revenue over a 20-year span. The development is also expected to produce 2,000 permanent jobs alongside 6,800 part-time positions.
“We’ve always believed in the potential of this project and what it could mean for Des Moines,” Helen Aboah, president and chief operating officer of Krause Group, wrote in an emailed statement. “I’m encouraged that we’re back at the table with the city and making progress together. Projects of this scale require persistence, creative thinking and strong public-private partnerships. There’s still important work ahead, but we share a commitment to finding a path forward.”
Talks between the city and Krause Group originally began in 2019. With negotiations officially restarted and a public hearing vote scheduled, the future of the industrial site depends on whether alternative bids materialize before the December deadlines.