A long-awaited Lincoln Way development and a broader entertainment district are moving forward despite losing $10 million in state grant money.
The Linc on Lincoln Way, which first entered the public eye in 2021, will transform a section of land between Clark Avenue and Kellogg Avenue into a space filled with shopping opportunities, restaurants and apartments. The City of Ames has acquired more than 20 properties for the development initially budgeted at $150 million. A plan is expected to be finalized in the fall. The project is part of a larger district that includes the new aquatic center and future plans for Ames’ Main Street.
Ames was denied its reinvestment district act application by the Iowa Economic Development Authority on June 20. The $10 million grant that was provisionally awarded to the project in 2021 was also rescinded.
The IEDA decision does not directly affect the Linc, Ames Planning and Housing Director Kelly Diekmann said. The $10 million award was meant to cover debt associated with the Fitch Family Indoor Aquatic Facility, which is expected to open in January.
The aquatic facility construction will continue without the grant, Diekmann said, since the Ames City Council approved construction bonds regardless of the reinvestment district application.
Christensen Development and Hunziker Companies initially hoped to break ground on the Linc development in 2023, but inflated material costs and high interest rates forced a temporary pause.
Why was Ames’ IEDA application denied?
The absence of a hotel feasibility study, lack of funding details, and limited retail information led to the city’s application being rejected, despite various revisions made since the initial submission in June 2021.
President and CEO of Ames Regional Economic Alliance Dan Culhane said material costs, interest rates, and the COVID-19 pandemic all inspired the “regrettable” denial.
“That is not an excuse, it is simply the reality and for that we were disappointed with the board’s decision to deny the application,” Culhane said. “We hoped for an extension to give more time to meet the requirements of the application, but unfortunately the program and legislation associated with the program expired June 30.”
The IEDA board was restricted by state law from approving any Iowa Reinvestment District Act applications after July 1, 2025, since the program had ended. That did not provide enough time for Ames to compile the necessary information and to hold a special board meeting needed for approval.
IEDA Director Debi Durham said that denying Ames’ application was one of the hardest decisions she’s ever made during the June 20 meeting. However, IEDA staff and the board admitted they couldn’t assess the economic feasibility before the program expired.
“Statutorily, the program ends, and it has not met the threshold nor has it met the same level of due diligence that every other project has to at least get to the next level,” Durham said. “If I disagreed with my team and came forward and moved this forward, I (would) have crossed the line of the administrator of what the legislature gives us to the legislature, and that is not my role.”
Linc developer met with criticism
Chuck Winkleblack, general manager of Hunziker & Associates, said the shortage of information was due to the developer taking on too much responsibility.
“Regrettably, the ownership group, of which I am a part, has made some not great strategic decisions over the past three to four years as we were moving through this,” Winkleblack said during the June 20 IEDA meeting. “Our group tried to take on too much of this project ourselves and that proved to be a costly mistake.”
Winkleblack noted that new people were brought in to help move the project forward, but a development group from Sioux Falls passed on the project in 2024. Initially, the plan was to wait until 2025 to give the company time to clear its schedule, but the owner died unexpectedly in January.
The Linc project group has since secured a new, yet-to-be-named developer, while entering discussions with a pair of hotel brands. The hotel is the missing anchor.
“Fast forward, we’ve got a new developer partner, a new team and we’re actively working with two hotel franchises,” Winkleblack said. “Once the hotel piece is settled, we believe it will come together very quickly.”
Final plan for the Linc expected in a few months
The Linc project team is finalizing some of their plans while working with Discover Ames on a feasibility study. Diekmann said they are specifically focusing on the possibility of a conference center. The project developer believes the final plan can be submitted in the fall once the study is complete.
“The city does not control the land so it will always require the property owners and a developer to formulate a development project for the site,” Diekmann said. “The city’s planning and zoning is already in place to support a Linc-type project and that eventually is what the city expects to see built on the site.”
Celia Brocker is a government, crime, political and education reporter for the Ames Tribune. She can be reached at CBrocker@gannett.com.
This article originally appeared on Ames Tribune: The Linc, Ames reinvestment district moving forward despite loss of $10M federal grant
Reporting by Celia Brocker, Ames Tribune / Ames Tribune
USA TODAY Network via Reuters Connect
