The year-long delay in the opening of Pro Iowa Stadium and Global Plaza also means that other related Krause Group projects will likely be completed at later dates than originally planned, people associated with the project said.
The delay, announced earlier this week, should not affect the progress of developments east of the proposed stadium complex, said Matt Anderson, assistant city manager of Des Moines.
Hubbell Realty Co. and Sherman Associates are developing a large area south of Martin Luther King Jr. Parkway and east of Southwest 14th Street. Development continues in this area, which includes residential and commercial projects, Anderson said.
“The key for Hubbell was already taken care of, and that was taking Dico down and getting that horror out of there,” Anderson said. “They are already working on plans to keep marching west, so whether the stadium is finished in 24, 25 or 26 doesn’t impact Hubbell.
“Obviously everyone would like to see the stadium finished as soon as possible, but the real obstacle to [Hubbell] … was Dico.
The 43-acre site at 200 SW 16th St. had been occupied by manufacturer Dico Inc. The site was placed on the U.S. Environmental Protection Agency’s Superfund list in 1983 and lay unused for more than 25 years as the property’s previous owner fought the federal government. on cleaning costs and other matters. A deal was reached in the fall of 2020, and in 2021 the site was cleaned up, a process that included removal of derelict buildings, aboveground tanks, and other debris.
Krause Group, through its Krause+ development arm, plans to build a 6,300-seat multi-purpose outdoor stadium at the site. The stadium would be used by a USL championship football team and would host other events as well.
The stadium and Global Plaza are the centerpiece of an estimated $550 million redevelopment plan that includes the area south of MLK Parkway and an area north of Ingersoll Avenue between 15th and 18th streets.
Krause+ has partnered with the City of Des Moines to apply for funding through the Iowa Reinvestment Act. Last June, the Iowa Economic Development Authority gave preliminary approval to provide up to $23.5 million in hotel/motel and sales tax revenue to the $550 million redevelopment project. dollars. The board has until July 1, 2025 to give final approval and award the funding, according to an IEDA spokesperson.
Construction of the stadium and Global Plaza, with development costs estimated at approximately $95 million, was scheduled to begin this summer and be completed in the spring of 2024. This week, the project’s backers announced that the stadium and the place would open in the spring of 2025.
“As we reassessed the construction schedule – taking into account supply chain and cost challenges, remediation of the DICO site and conversations with suppliers – we determined that an opening date in 2025 is more reasonable,” said Charley Campbell, secretary of the Iowa Soccer Development Foundation. Affirmation prepared. “It gives us the best possible chance for the team to play a full season.”
The Iowa Soccer Development Foundation is the fundraising arm of the initiative to bring professional soccer to Des Moines.
The delay also means the start of construction on a proposed stadium hotel and nearby entertainment center will also be postponed, Krause+ business development manager Nate Easter wrote in an email. “We believe it is in the interest of [the projects] to align with the stadium schedule.
“Given the complexity and realities of any development in today’s environment, coupled with the Midwest weather, it is not uncommon to see projects of this magnitude delayed to deal with challenges such as increased of various material costs,” Claire Brehmer, senior communications specialist for Hubbell Realty Co., wrote in an email. “All developers experience these types of decisions on some scale – it comes down to how each has prepared to fight these headwinds in advance.”
Anderson said he is not concerned that the proposed stadium project will take even longer than what is currently proposed.
“It’s a complex project that takes a long time,” he said. “Everything is moving forward…and scoring could start in the fall. It’s not like you’re a whole year behind construction, but winter is going to impact what you can do, which impacts your ability to get a first kick off in 2024.”
Anderson said the city is proceeding with planned street improvements in the area as well as installing sewers and water lines.
“We’re moving forward with some of these improvements, so it doesn’t impact our work,” he said.