After years of snags, a major component of the Merle Hay Mall redevelopment project is once again moving forward. 

The Iowa Economic Development Authority board this morning approved an amended district plan and revised conditions for the project through IEDA’s Iowa Reinvestment District program. The state’s allocation to the $164 million Merle Hay arena and entertainment district project remains $26.5 million.

“This round of IRD has been difficult since the very beginning. The timing of the [funding] round, with COVID sitting in the middle of it made these projects difficult to conduct right from the get go,” said IEDA board member Mark Kittrell, who added that he hoped the state discontinues the IRD program, which was designed to help communities fund large-scale projects, as it’s been difficult for cities, developers and IEDA to figure out.

Ownership of the 66-year-old, 74.6-acre mall property is working with the cities of Des Moines and Urbandale on the plan to revitalize the area into a modern shopping and mixed-use sports and entertainment destination. Des Moines and Urbandale have been working together on the project through a 28E agreement, which allows two government agencies to enter agreements jointly.

Kittrell, a longtime IT entrepreneur from Cedar Falls, added that the Merle Hay redevelopment plan is a solid project. 

“This project was a very good, strong project, and has been a very good, strong project since the beginning, and I applaud the tenacity of the people that have worked on it,” he said. “It’s not only taken a lot of work from the developer that’s obviously very committed to this property, but to then involve two communities and figure out how to put a 28E structure together around all of that, if you can pull four parties to agree on what type of day it is, it’s probably a good day.”

Back in 2022, the IEDA had approved $26.5 million for the Merle Hay Reinvestment District project, which was expected to include an arena for the Des Moines Buccaneers hockey team. Mechanical issues at the Buccaneers’ 45-year home, the Buccaneer Arena at 7201 Hickman Road, prevented ice production for skating. The Buccaneers last year announced a change in venue, but not to the Merle Hay project, instead to the MidAmerican Energy RecPlex in West Des Moines for the 2024-2025 and 2025-2026 seasons.

Merle Hay project planners went back to the drawing board and the amended, $164 million Merle Hay project has many facets, including:

• Multi-use arena and volleyball facility: $56.9 million
• Pickleball courts (completed): $3.1 million
• Hotel: $27 million
• Kohl’s (completed): $12.4 million
• Retailer north of Kohl’s: $17 million
• Credit union: $3.5 million
• Mixed-use improvements Phase One: $15 million
• Mixed-use improvements Phase Two: $25.8 million

Since 2022, owners have completed retail, mall and stormwater improvements. Dinks Pickleball, a 13-court facility, was completed in 2023 and hosted 60,000 visitors in its first year. New retailers include the completed Kohl’s store, Kid’s Empire, Riddle’s Jewelry and Five Guys. Housing improvements are part of the project, as well; Lillis Lofts was completed in 2022. 

Per the new agreement with IEDA, the project needs to have documentation of $56.9 million in committed financing for Phase One of the sports complex by March 31. Documentation of a selected hotel developer is due Dec. 31, 2027. Work on the Merle Hay Tower has been removed from the active lineup of projects and is now part of Phase 6 of project’s mixed-use campus improvements. 

Past coverage:

• Merle Hay Mall CEO: Revised redevelopment plan expands ‘universe of potential users’
• Merle Hay Mall keeps eye on arena project despite Bucs’ withdrawal from talks
• Mall owner: Turmoil swirling around Kohl’s won’t affect Merle Hay project