Ames may partner with CYTown to help fund Iowa State Center renovations
The city of Ames is considering ways to partner with Iowa State University's yet-to-be-built CYTown district to help fund future renovations at Hilton Coliseum, Stephen's Auditorium, Fisher Theatre and the Scheman Building.
Ames City Manager Steve Schainker said during the Tuesday, March 12 Ames City Council meeting that the $200 million CYTown development provides an innovative strategy to finance the needed improvements for the original four buildings at the Iowa State Center.
“It is the belief of Ames' city staff that the Iowa State Center buildings are an asset to the entire Ames community, not just Iowa State,” Schainker
said. “It supports the City Council’s value for Ames to be a fun, vibrant, and healthy community that attracts and retains people.”
Iowa State began exploring the feasibility of a multi-use arts, culture, and community district in 2019. Their intent was to develop the underutilized parking lots between Jack Trice Stadium and the Iowa State Center, which inspired the CYTown project.
CYTown is expected to house a medical facility, retail and office space, residential units, an outdoor plaza, and an amphitheater. ISU began installing utilities and parking areas in February 2023 as part of the first phase.
ISU recently announced that it had picked Goldenrod Companies to lead the design, development, financing, and construction of CyTown.
CYTown will finance Iowa State Center
The Iowa State Center consists of C.Y. Stephens Auditorium, Fisher Theater, Hilton Coliseum, and the Scheman Building. The first building, Stephens Auditorium, was completed in 1969, and the final facility, the Scheman Building, was built in 1975.
The initial capital cost of the Iowa State Center’s construction was $19.2 million. Construction was financed through donations, with no state funding, university money, or property taxes contributing to the project.
The complex was considered home to Iowa’s premier performing arts, meeting, and sports venues, Schainker said.
“The center assured not only absolute quality of life for the citizens of Ames, but also drafted hundreds of thousands of visitors, bolstering our local economy, and generating associated sales and hotel/motel revenue for the city,” Schainker said.
The city manager said competition has grown in recent decades. Other cities have created more modern venues, which have attracted many conferences, performances, and events that initially used the Iowa State Center.
Financing the Iowa State Center has become a challenge over the years. Schainker said future renovations at the four buildings will cost $110 million.
“The best efforts have been put forward by the university, trying to raise donations,” Schainker said.
“However, it’s difficult to get anyone to donate for maintenance items, so they haven’t been successful in that regard.”
Iowa State University hopes the CYTown development will help generate the necessary funding by creating a revenue stream through tenant leases.
Schainker said that though Ames residents have often used the complex over the years, the city has never invested in it.
“I think it’s safe to say that if you talk to people who live in Ames, almost every one of us have at one time taken advantage of that facility,” Schainker said. “Whether it’s high school graduations, performing arts or continuing education opportunities, we’ve all utilized it. But the citizens of Ames have never contributed to the construction.”
Two agreements presented for CYTown development
City of Ames staff and Iowa State administrative staff are nearing a compromise that could help fuel the Iowa State Center for the next 35 years.
“Over the years, the relationship between the city of Ames and Iowa State University has served as a role model for other communities,” Schainker said. “A protracted dispute with respect to the issues of taxability and competition would be detrimental to the parties’ relationship and could delay or altogether thwart the renovation and improvement of the Iowa State Center facilities.”
City and university staff designed a creative agreement that calls for a Payment In Lieu Of Taxes (PILOT), which would avoid friction over taxes and business competition,
The agreement will generate revenue to finance the needed capital improvements for the four original buildings. CYTown’s generated revenue will be directed to a Capital Improvements Fund dedicated to enhancing the Iowa State Center over 35 years.
The council agreed to ensure a renegotiation or review of the PILOT funds in the event that one of the original four buildings is removed.
A separate agreement addresses the development’s infrastructure and services. It outlines the city’s responsibilities in supplying utilities, managing traffic, and providing related services.
Both agreements will be presented to the next Ames City Council meeting on April 9.
“It’s a complicated issue, one the citizens of Ames are very interested in,” Schainker said. “Therefore, we want to give (the council) and the public more time to understand what’s being proposed.”