The developer that’s been attached to Valley West Mall’s future in West Des Moines has said redevelopment of the mall is not currently moving forward.
A long-term stall of redeveloping the mall site into a mixed-use area with restaurants, retail, residences, entertainment and green spaces is not what officials, including West Des Moines’ mayor, want. But there may still be a path forward for the vision the city has released renderings for — though the timeline is not clear.
“From our perspective, the project is not moving forward at this time. However, we remain ready to reengage and continue working with the city and JCPenney should the opportunity arise,” BJ Stokesbary said in a statement Tuesday, April 28, to the Des Moines Register.
Stokesbary is the chief operating officer of ATI Group, a real estate developer in Ankeny. Court documents revealed in November 2025 that Stokesbary organized Valley West Redevelopment LLC — the company that had been in an extended period of due diligence in preparation to buy the mall. ATI Group has also been leading plans for a mixed-use project at the site of Crossroads Mall in Waterloo and redevelopment of Fort Dodge’s Crossroads Mall.
The City of West Des Moines had not yet reached a development agreement with Valley West Redevelopment. But the city has been prepared to potentially offer $110 million in financial incentives to the developer over 10 or 12 years to buy and tear down Valley West Mall and redevelop the site.
West Des Moines City Council approved Tuesday by a vote of 4-1 the ability to offer up to $110 million in incentives.
West Des Moines Mayor Russ Trimble said at Tuesday’s special meeting that the public incentives would leverage $400 to $500 million of private investment at the Valley West Mall site.
What has stopped progress, from Trimble’s perspective, is JCPenney.
The JCPenney store at Valley West is one of the mall’s few remaining tenants and also has a long-term lease.
Trimble told the Register the mall site’s future is heavily dependent on JCPenney’s willingness to allow demolition and redevelopment, and if the company does not agree, “no one will be able to redevelop this property until 2032.”
He said JCPenney wants to be able to continue its business as usual while redevelopment would occur. And the power of JCPenney in its lease is such that an action like restriping the parking lot cannot be done without its permission.
“We’ve had some very good initial conversations with JCPenney and I’m optimistic and hopeful that we’re going to be able to work together to move forward,” Trimble said Tuesday.
However, “If we can’t figure out a way to work together to begin redeveloping the property, the city and ATI will regretfully have to walk away and the property will have to sit,” Trimble told the Register.
He said after the initial contact with JCPenney, the company went quiet until the clock ran out on ATI Group’s option to purchase the mall.
JCPenney did not immediately respond to request for comment Wednesday, April 29.
The JCPenney at Valley West is the only one in the Des Moines metro and one of only two in central Iowa — the other store is in Ames’ North Grand Mall. There are nine JCPenney stores in total in Iowa.
Valley West Mall’s history includes past plans that fell through
Valley West has been in receivership since October 2022, after U.S. Bank foreclosed on then-owner Watson Centers of Minneapolis for failure to make payments on a $50 million loan from 2012. A Polk County judge approved a plan to auction the mall, but no sale was scheduled.
Instead, the receiver has continued to let the mall operate. The mall has lost most of its tenants, with many of those having departed since it was listed for sale in February 2025.
The receiver in mid-July selected Valley West Redevelopment’s offer to buy the mall.
The city has long wanted the property to be redeveloped. A 2022 study of the adjacent University Avenue corridor, conducted for Clive and West Des Moines, found the area, with freestanding retailers including Hy-Vee, Fareway, Home Depot, Target, Whole Foods and Kohl’s, could be a “downtown-like focal point” for the communities. The mall occupies the heart of that corridor and represents one of the largest tracts available for redevelopment along Interstate 235.
There have been two previous redevelopment plans for the property.
Then-owner Watson Centers tried to rebrand the mall in 2019 as Valley West Commons and turn it into a lifestyle center like Jordan Creek Mall and its surrounding area, with restaurants, entertainment venues and apartments.
In 2021, after the previous plan failed to gain traction, the city and Watson Centers announced plans to demolish the old Younkers department store space at the mall to build a 240-unit apartment building, new retail spaces and a restaurant. But the city failed to win $30 million in state aid for the project.
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: Valley West Mall’s future uncertain as redevelopment project stalls
Reporting by Phillip Sitter, Des Moines Register / Des Moines Register
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