Iowa State University’s CyTown project has been delayed to 2028, with a groundbreaking ceremony scheduled for this fall. The mixed-use development, located between Hilton Coliseum and Jack Trice Stadium on the university’s campus, will feature lodging, retail, entertainment, and more.

Project Details

The project’s timeline has been pushed back from the fourth quarter of 2027 to the first quarter of 2028. Michael Norton, general counsel and senior advisor to the president at ISU, attributed the delay to changes in the management agreement with Goldenrod Companies, particularly regarding the project’s amphitheater.

The university and Goldenrod decided to remove the amphitheater from the agreement and use bonding to fund its construction, which is expected to cost $18 million. A total of $12 million has already been secured through contribution intents from donors.

A ‘side letter’ has been added to the agreement, guaranteeing revenues for the CyTown Suites, residential spaces with 10-year leases that will overlook CyTown. The revenue guarantee totals $160 million over the 30-year contract.

Financial Projections

Projected construction costs have risen slightly, but assuming a 90% occupancy rate over the next 30 years, the university is expected to make $172 million in net revenue. Even if occupancy drops to 50%, all costs would still be paid, although revenue would decrease significantly.

Original reporting: KCCI Des Moines — read the source article.