The Board of Regents approved Iowa State’s request to enter into a 30-year development agreement with Goldenrod Companies, paving the way for the construction of eight new buildings in the CyTown development zone.
According to Michael Norton, Iowa State’s general counsel, “Goldenrod will be responsible for arranging financing necessary to construct and will build all the vertical infrastructure of the development.”
The development is expected to include eight buildings that include space for retail, food and beverage vendors, offices, an outdoor music venue and a 250-key hotel and conference center. The estimated cost of construction is expected to be $175 to $225 million, according to Regents documents.
Regent Christine Hensley recommended that Goldenrod reach out to Heart of America Group, an Iowa-based hospitality and real estate company, who owns hotels and restaurants in the Des Moines metro and surrounding states. Hensley said she has no knowledge of interest, but that CyTown may be attractive given the group owns one of the largest number of hotel rooms in the Des Moines area and also owns a number of restaurants.
“[We] are pleased to bring to the Board two of the fundamental agreements necessary for the continuation of that project: a 30-year development agreement with Goldenrod, Iowa State University and the Research Park and a related ground lease that would allow for the development of the 48 acres of land near and around the Iowa State Center and the university’s athletic facilities,” Norton said.
The CyTown Management Agreement (CMA) is the first of the agreements with a term of 30 years. According to Regent documents, the university has funded underground infrastructure for development and will have no debt obligation regarding any aspect of the development.
The Master Ground Lease (MGL) is the second of the agreements and “grants the overall construction and operation oversight of the project to the Research Park, under the control and direction of the CMC (CyTown Management Committee).”
According to previous reporting from the Daily, the Board also approved an agreement between Iowa State and McFarland Clinic during its June 2024 meetings.
McFarland Clinic entered into a 30-year leasing agreement with the University and will construct approximately 30,000 square feet of real property that will house primary and specialty care, urgent care and care for student athletes.
In a press release from Inside Iowa State, President Wendy Wintersteen stated, “The CyTown project would not be possible without the tremendous collaboration from many partners including the Board of Regents, the City of Ames and McFarland Clinic. We look forward to the ongoing partnerships as the CyTown development begins to take shape.”
According to Regent documents, the final agreements shall be subject to the executive director’s review and approval and contain terms and conditions substantially similar to the proposed CyTown Management Agreement/Master Ground Lease Agreement Term Sheet.
