Grimes council accepts land donation, $12 million for GrimesPlex
BUSINESS RECORD STAFF Apr 14, 2022 | 3:21 pm
2 min read time362 wordsAll Latest News, Culture, Law & Government, Real Estate & Development
The city of Grimes now owns land on which a 50-acre multiuse sports complex is planned after the City Council this week approved accepting the land donation as well as $12 million from the project’s original developer.
Hope Development & Realty LLC announced in fall 2020 that it would develop the Midwest’s largest turf sports tourism venue as part of its Hope District, 200 acres north of Iowa Highway 141 and East First Street. When fully developed, the area is expected to include housing, hotels, restaurants and retail development.
Hope Development & Realty is owned and operated by Reza Kargarzadeh, president and CEO of Engineered Plastic Components Inc. in West Des Moines. Kargarzadeh, through his Hope K Farms development company, owns or has developed hundreds of acres in Central Iowa.
A development agreement between Hope Development and the city originally called for the developer to donate the GrimesPlex to the city in 10 years. Instead, the donation was accelerated.
On Monday, the council voted to accept the land donation and $12 million from Hope Development.
“The City of Grimes is uniquely equipped to carry GrimesPlex forward and construct a facility that will most accurately meet the community’s needs,” Jake Anderson, Grimes’ city administrator said in a prepared statement. “The Parks and Recreation Department provides expertise in recreation management that will help [Grimes] build this one-of-a-kind venue.”
Several steps must be taken before work begins on the complex, including council approval of changes in the development agreement with Hope Development, approval of a site plan, and the awarding of construction contracts.
Construction costs are estimated at $19.5 million. The financial donation from Hope Development will be used to pay for some of the construction; the city will finance the remaining portion, according to the news release.
An analysis showed that lease revenue generated from the facility will cover the annual payment associated with the debt, the news release said. Additional revenue generated above and beyond the annual debt service can be used for future enhancements or reserve funds for capital replacements.
Development of the GrimesPlex is expected to be completed in about 18 months.
Related article: $250 million multiuse development planned for Grimes