The City of Johnston faces counterclaims filed against it in the ongoing lawsuit against the developer of the stalled Ignit indoor sports complex.
Johnston in March filed a lawsuit against Ignit Johnston LLC. The city is seeking more than $3.6 million in damages, after Ignit allegedly failed to sell back the land for a stalled $63 million indoor sports complex, or alternatively pay back development grants the city had awarded. But in late May, Ignit alleged in court documents the city’s decisions delayed the project by years and pushed it into a difficult financial environment.
Ignit’s finances have been the subject of several lawsuits in recent months. In addition to the city’s claims, banks and a property management firm filed to foreclose on the sports complex site that spans more than 30 acres on the west side of Merle Hay Road just north of Interstate 80/35. And several investors in the project have sued to try to get their money paid back.
But Ignit said in its counterclaims to the city filed May 30 it has suffered damages in excess of $142 million because of the city’s alleged actions that allegedly were in breach of contract, in breach of good faith and fair dealing, negligent and unjustly enriched the city.
Ignit asked the Polk County court to award it through a jury trial an amount of money that would “fully and fairly compensate it for all damages it has incurred.”
What has Ignit alleged in Johnston lawsuit?
The City of Johnston announced plans for the project in 2020 and Ignit broke ground in September 2023. But not much visible progress was ever made beyond the foundation of the project. Plans included a fieldhouse, multi-court gym, commercial buildings with space for restaurants, breweries and retail, a playground and city-owned recreation space.
“City staff repeatedly said one thing but did something completely different and put up barriers to move the Ignit Johnston project forward,” Ignit claimed.
The delays that allegedly resulted pushed the project “into one of the most difficult capital markets, and historic inflationary periods,” according to Ignit’s counterclaims.
Some of the alleged actions of the city include failing to timely acquire a property, initially resisting to apply for a grant, creating roadblocks in addressing detention pond needs, withdrawing a financial commitment, and unjustly gaining infrastructure, engineering and a development blueprint at Ignit’s expense.
“The City of Johnston cannot comment due to pending litigation,” City Administrator Mike Pogge-Weaver told the Des Moines Register on June 16.
Ignit has faced other legal issues over Johnston property
Naples, Florida, property management and real estate services firm Gulf Coast Realty filed a foreclosure case in November 2025 against Ignit Johnston LLC and associated developers for the Johnston property. But Gulf Coast filed June 9 to dismiss the case, which had been scheduled to go to trial in November this year.
Reinbeck-based Lincoln Savings Bank also filed a foreclosure case against Ignit in November 2025 over the property and included Gulf Coast as a defendant. That foreclosure case is still ongoing, as well as one against Ignit that City State Bank filed May 20 which also included Gulf Coast as a defendant.
Phillip Sitter covers the suburbs for the Des Moines Register. Phillip can be reached via email at PSitter@usatodayco.com. Find out more about him online in the Register’s staff directory.
This article originally appeared on Des Moines Register: Ignit files counterclaims against Johnston over stalled sports complex
Reporting by Phillip Sitter, Des Moines Register / Des Moines Register
USA TODAY Network via Reuters Connect
By Phillip Sitter, Des Moines Register | USA TODAY Network
