The Iowa Board of Regents approved two agreements brought forward by Iowa State University for its CyTown development project. (Photo by Brooklyn Draisey/Iowa Capital Dispatch)
The Iowa Board of Regents gave Iowa State University the go-ahead Wednesday to move forward with its CyTown plans, approving a 30-year development agreement and lease agreement.
ISU General Counsel and Chief Risk Officer Michael Norton told board members the agreements were “fundamental” to seeing the project progress.
“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,” said ISU President Wendy Wintersteen in a news release. “We look forward to the ongoing partnerships as the CyTown development begins to take shape.”
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With the approval, the university will enter into a 30-year CyTown Management Agreement with Goldenrod Companies and Iowa State University Research Park, Norton said, in which Goldenrod will handle financing and construction of the development. Through the Master Ground Lease agreement, Iowa State University Research Park will oversee Goldenrod’s work in the construction and operation of the development.
The agreement also creates the CyTown Management Committee, made up of members from ISU and Research Park leadership and the board of regents, to direct the university’s partners in the development. The committee will answer to Wintersteen and the board of regents, Norton said.
“Goldenrod will be responsible for managing and servicing the overall operations of the development, including securing the vendors and servicing the needs of those vendors throughout the life of the project under the direction and control of the CyTown Management Committee,” Norton said.
Plans for the project include 72,000 square feet of retail and food and drink space, 90,000 square feet of office space, a 215-key hotel and an outdoor music venue with a capacity of 2,800 people, Norton said, all with an estimated cost of between $175 million and $225 million.
This includes the McFarland Clinic, which was approved for development in June. Debt incurred during development will not come back on the university or research park, Norton said, and each building will have its own site development leases that will be brought to the board of regents for approval.
The research park will be a “flow through entity” for revenue attributed to the university through the two agreements, Norton said, meaning that it has no financial obligation to the project. In addition to overseeing Goldenrod and holding it accountable for its work and responsibilities, the research park will also have the “first right of rental” to office space in CyTown.
Norton said this was an important aspect of the agreements, as ISU wants to ensure that its use is connected to the mission and goals of the university and it wants to form more connections between its research branches and the private businesses that will work out of CyTown.
“More than building a space, this is about creating a place that brings together students, businesses and the community,” said Goldenrod Managing Principal Zach Wiegert in a news release. “CyTown will foster innovation, drive collaboration and most importantly encourage meaningful interactions. We’re proud to be part of this transformative initiative and look forward to the opportunities it will bring to the university and Ames.”
Regent Christine Hensley said in the meeting that she would like for the board to have regular updates on the project and its progress, so members can answer questions they receive from the public with confidence.
“I would just like to ask that we have ongoing communication if there are any changes or anything, just so that we as regents know exactly where it’s at and what has transpired,” Hensley said. “And I would ask it not only for this project, but for all projects, so that we have a good understanding, because we continue to get questions out in the community.”
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