In addition, project backers must determine how the projects will be financed, Anderson said.
Both Urbandale and Des Moines are expected to provide tax increment finance funding. Des Moines is expected to provide up to $9 million in tax increment financing for the stadium project; Urbandale is expected to provide up to $3 million for the arena project (pictured).
In addition, Krause Group has raised about $20 million of a private fundraising goal of $25 million, according to Charley Campbell, general counsel for Krause Group. “The recent generous commitment from American Equity Life [Insurance Co.] has given the project a great boost and significant momentum as we move confidently toward our goal,” he wrote in an email.
Krause Group is also seeking other grants and will take out construction loans for the project. Construction loans will also be taken out for the Merle Hay project.
The portion of Merle Hay Mall that is in Urbandale will be rezoned to accommodate the future uses of a stadium and hotel, said Curtis Brown, Urbandale’s assistant city manager and economic development director.
While the outdoor stadium planned in Des Moines will be built from the ground up, the new Merle Hay arena will be located in an existing building that once housed a department store. The roof of the building will need to be raised to provide the space needed for an arena, said Elizabeth Holland, CEO of Merle Hay Investors, owners of Merle Hay Mall.
The project will be similar to the construction that occurred before the opening of Flix Brewhouse, which includes a movie theater, at Merle Hay Mall.
“We took the roof off, we raised the ceilings, we got rid of the columns,” Holland said of the project. “We will be doing something similar in the former Younkers building. Since we’ve done it before, we’ve got the skill set and know some of the big things that need addressed.
“Now we’re fine-tuning all of those details.”
Construction is expected to be completed on the arena in time for the Bucs hockey team to play there during the 2022-23 season, Holland said.
Anderson said construction of the multiuse stadium in Des Moines is expected to begin early next spring.