In fall 2019, Krause Group announced plans to develop a multiuse sports stadium on undeveloped ground southwest of Des Moines’ central business core.


A couple of months later, a master development plan was released for the area located on 13 acres south of Martin Luther King Jr. Parkway, and on both sides of Southwest 14th Street. The project, valued at $95 million, was to include the 6,000- to 8,000-seat stadium that would be home to a United Soccer League Championships franchise team, a street-level plaza, a five-story office and retail building, restaurants, and a parking garage for 500 vehicles.


Over the next 18 months, Krause Group announced that the proposed development was moving two blocks west to a contaminated site near the Raccoon River. The company, which owns Kum & Go, also announced its redevelopment plans had grown to include an area totaling about 72 acres that would cost about $550 million to develop.

 

Krause Group, through its development arm Krause+, partnered with the city of Des Moines to request funding through the Iowa Reinvestment Act. In June, the Iowa Economic Development Authority approved providing up to $23.5 million in state hotel/motel and sales tax revenue to the project that would include development of the open-air stadium, the plaza, three hotels, an entertainment center, a brewery and a grocery store. 


The reinvestment district “will reimagine blighted, vacant and brownfield sites in the heart of Des Moines and replace them with dynamic, mixed-use neighborhoods that use the power of place to draw people of all ages and backgrounds to downtown,” backers of the project wrote in their presentation to the Iowa Economic Development Authority board.


If all 23 proposed projects are completed in the reinvestment area, the projected value of the properties would increase to $159.1 million from their current value of $14.6 million, according to the presentation provided to the board. 


In its application to the state, Krause+ provided details for nine projects, all of which are expected to be completed by mid-2026. Development costs for the nine projects total $209.1 million, according to the presentation. 


Planning for the remaining projects – mostly office, retail and multifamily – would begin in 2024 with construction occurring between 2025 and 2031, according to the presentation.


The new developments – particularly the stadium, event venue and brewery – are expected to attract thousands of visitors annually to the area.


“It’s exciting to talk about all the things happening in downtown Des Moines – the soccer complex, Global Plaza, the skatepark and the Dew Tour,” Brian Crowe, executive vice president of economic development at the Greater Des Moines Partnership, said during a recent Business Record Project515 panel discussion. 

“Those things are unique amenities and assets that differentiate us from other communities and make us a really attractive place to locate a business or to keep and expand a business,” he said.


The following is a look at the nine projects expected to be completed by mid-2026. The information was included in the information provided to the state board.

 


Soccer stadium, related development 
 

The map and corresponding numbered architectural renderings show where the Pro Iowa Stadium and Global Plaza and other key projects are planned.


 

1. MULTIUSE SOCCER STADIUM

DEVELOPER: Krause+

ADDRESS: 200 S.W. 16th St.

OVERVIEW: The 6,300-seat multiuse stadium, planned on a toxic site currently being cleaned, will include 12 suites. In addition to USL Championship soccer matches, the stadium will also host concerts, trade fairs, marching bands and other sporting events including football and rugby. Three practice fields are planned south of the stadium and north of the Raccoon River.

ESTIMATED COST: $75 million

ESTIMATED ECONOMIC IMPACT: $356.4 million in spending over 20 years

ESTIMATED TAX PROJECTIONS: $14.6 million generated over 20 years

ESTIMATED IN-SERVICE DATE: 2024

ANNUAL VISITORS: 164,500

 

1. GLOBAL PLAZA

DEVELOPER: Krause+

ADDRESS: 200 S.W. 16th St.

OVERVIEW: The plaza would be large enough to host cultural and community events currently held along downtown Des Moines’ streets. Pre- and post-soccer match events would also be held in the area. The plaza would include a hard-surfaced space for soccer games between small numbers of people.

ESTIMATED COST: $8.7 million

ESTIMATED ECONOMIC IMPACT: $30.2 million in spending over 20 years

ESTIMATED TAX PROJECTIONS: $4.6 million generated over 20 years

ESTIMATED IN-SERVICE DATE: 2024

ANNUAL VISITORS: 100,800

 

1. STADIUM HOTEL

DEVELOPER: Krause+

ADDRESS: South end of site at 200 S.W. 16th St.

OVERVIEW: A 150-room, eight-story hotel with average daily rates of between $180 and $200. The hotel is expected to primarily serve visitors to the stadium and plaza as well as other nearby community attractions including the Pappajohn Sculpture Park, Gray’s Lake and Central Iowa Water Trails. The structure would include a pool, a gym, a business center, meeting rooms and banquet space.

ESTIMATED COST: $31.7 million

ESTIMATED ECONOMIC IMPACT: $437.8 million over 20 years

ESTIMATED TAX PROJECTIONS: $37.7 million generated over 20 years

ESTIMATED IN-SERVICE DATE: 2024

ANNUAL VISITORS: 59,116

 

2. KUM & GO CONVENIENCE STORE

DEVELOPER: Krause+

LOCATION: Southwest corner of Martin Luther King Jr. Parkway and Southwest 16th Street

OVERVIEW: The 5,600-square-foot store would be pedestrian- and bicycle-friendly while also providing easy vehicle access. The structure’s facade is expected to complement the neighborhood.

ESTIMATED COST: $7.5 million

ESTIMATED ECONOMIC IMPACT: $80.9 million over 20 years

ESTIMATED TAX PROJECTIONS: $4.2 million generated over 20 years

ESTIMATED IN-SERVICE DATE: 2023

ANNUAL VISITORS: 9,887

 

3. ENTERTAINMENT VENUE

DEVELOPER: Krause+

LOCATION: North side of Tuttle Street at about Southwest 14th Street

OVERVIEW: The entertainment/”eater-tainment” venue is billed to be “a day-to-day destination with a full calendar of programming.” 

ESTIMATED COST: $23.1 million

ESTIMATED ECONOMIC IMPACT: $764.9 million

ESTIMATED TAX PROJECTIONS: $99.6 million generated over 20 years

ESTIMATED IN-SERVICE DATE: 2022

ANNUAL VISITORS: 87,794

 

4. BIG GROVE BREWERY

DEVELOPER: Krause+

ADDRESS: 555 17th St.

OVERVIEW: The brewery is leasing 12,000 square feet of the former Crescent Chevrolet building. Small-batch beers will be brewed on-site. The brewery will include outdoor patio spaces. The remainder of the building is expected to be converted to office space. To the east, Krause+ plans to develop four three- to five-story mixed-use buildings.

ESTIMATED COST: $17 million

ESTIMATED ECONOMIC IMPACT: $329.2 million over 20 years

ESTIMATED TAX PROJECTIONS: $17.1 million generated over 20 years

ESTIMATED IN-SERVICE DATE: Mid-2022

ANNUAL VISITORS: 37,871

 

5. WESTERN GATEWAY HOTEL

DEVELOPER: Krause+

ADDRESS: West of 15th Street between Ingersoll Avenue and High Street

OVERVIEW: A 125-room, five-story extended-stay hotel with daily room rates ranging from $180 to $200. The hotel would provide lodging for people visiting nearby Iowa Methodist Medical Center and surrounding attractions.

ESTIMATED COST: $27.5 million

ESTIMATED ECONOMIC IMPACT: $253.9 million over 20 years

ESTIMATED TAX PROJECTIONS: $24.6 million generated over 20 years

ESTIMATED IN-SERVICE DATE: 2026

ANNUAL VISITORS: 40,407

 

6. GRAY'S LANDING GROCERY

DEVELOPER: Sherman Associates

ADDRESS: South of Martin Luther King Jr. Parkway and east of an old rail line.

OVERVIEW: A 26,200-square-foot grocery store that would provide services to residents living in the area. Multifamily housing units could also be built above

the store.

ESTIMATED COST: $6.9 million 

ESTIMATED ECONOMIC IMPACT: $362.8 million over 20 years

ESTIMATED TAX PROJECTIONS: $18.8 million generated over 20 years

ESTIMATED IN-SERVICE DATE: 2023-24

ANNUAL VISITORS: 46,721

 

7. SHERMAN HOTEL

DEVELOPER: Sherman Associates

ADDRESS: 329 S.W. Ninth St.

OVERVIEW: A 98-room, four-story hotel that was planned to be developed by Sherman and Associates before the pandemic. 

ESTIMATED COST: $16.1 million

ESTIMATED ECONOMIC IMPACT: $158.7 million over 20 years

ESTIMATED TAX PROJECTIONS: $16.8 million generated over 20 years

ESTIMATED IN-SERVICE DATE: 2026-27

ANNUAL VISITORS: 27,796