Des Moines approves amended $16.4 million soccer-stadium grant
The Des Moines City Council approved an amended grant agreement June 29 for a planned downtown soccer stadium and multiuse project, committing the city to as much as $16.4 million in construction-related and post-completion payments.
The agreement with the Iowa Soccer Development Foundation includes a $7 million construction grant, divided into three payments tied to the project’s progress. It also calls for annual payments of $656,074 for 25 years after the stadium receives a certificate of completion.
The long-term payments are conditioned on the stadium continuing to be used for soccer. That condition ties the city’s annual financial commitment to the facility’s ongoing use rather than making the payments unconditional.
How the construction payments work
The first $3 million payment is due after the project reaches 75% completion or on July 1, 2028, whichever is later. A second payment of $2 million is due after 90% completion or July 1, 2029, whichever is later.
The remaining $2 million is due within 30 days after the project receives its certificate of completion. The payment schedule means the construction grant is spread across major stages of the project instead of being paid all at once.
The amendment does not establish a final construction completion date. The certificate of completion is important because it triggers both the final $2 million construction payment and the start of the 25-year annual payment period.
A long-term city commitment
At $656,074 per year for 25 years, the annual payments total $16,401,850 if all conditions are met. Combined with the $7 million construction grant, the agreement represents a potential city commitment of more than $23 million across the two payment structures.
However, the $16.4 million figure associated with the lease grant refers to the 25 years of annual payments, not the separate $7 million construction grant. The annual payments would begin only after completion and remain subject to the soccer-use requirement.
The planned stadium has been estimated at $95 million and is part of a downtown project that includes a public plaza. The city’s action therefore connects a sizable public financial commitment to both construction progress and the facility’s future operating purpose.
For Des Moines, the practical issue is not only whether the stadium is built, but also how the agreement’s timing and conditions shape the city’s obligations over many years. The milestone provisions give the city scheduled points for construction-related disbursements, while the soccer-use condition applies throughout the 25-year annual-payment period.
What happens next
The project must reach the construction milestones before the corresponding grant payments become due. The first two milestone dates are July 1, 2028, and July 1, 2029, with completion percentages also required under the agreement.
The final construction payment depends on the certificate of completion. Once that certificate is issued, the final $2 million is due within 30 days, and the annual $656,074 payments are scheduled to continue for 25 years as long as the stadium remains in soccer use.
Sources
- Roll Call No. 26-206: First Amendment to Grant Agreement, City of Des Moines
- Des Moines soccer deal could get $16.4M lease grant, Axios Des Moines
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