On March 1, Indianola voters approved adding a penny to the sales tax charged on retail sales in the city, the Warren County seat of government, a mere 20-minute drive south of Des Moines.

The vote is important. The revenues generated by the 1 percent local option sales tax will pay for the construction of a $25 million wastewater treatment plant and, in a line of thinking that only urban planners and developers understand, that new sewage capability could lead to a white-tablecloth restaurant and more.

So, maybe we missed a step in the staircase of logic that links wastewater and fine dining. Here it goes: Sewers lead to rooftops, and rooftops lead to retail. It’s that simple. There is a virtually unbreakable alliance among the three.

For Ryan Waller, who is barely six months into his job as Indianola city manager, the margin of victory — 1,358 to 337 — on the local option sales tax is almost as important as the revenues it will generate beginning July 1.

“I think when folks are informed and understand what is at stake, then they understand that they have a hand in this and we work for them,” Waller said. “I continue to be impressed with the passion and the pride that people have here.”

City leaders could not have found a more unabashed cheerleader for the city, its residents, its amenities and its ability to grow. It is worth pointing out that in recent history, residents have turned down bond referendums that would have paid for improvements to City Hall, and they joined with voters in the county as well as in Dallas, Polk and Madison counties in rejecting another local option sales issue.

To Waller, the recent vote is an indication that residents understand that the city’s potential growth was hobbled by a wastewater system that was built in 1978 and designed for a city of a little more than 11,000 residents. Indianola now has more than 15,000 people. Another factor was at play with the vote. Residents would have faced steep increases in wastewater fees if the local option sales tax had not been approved.

Still, the city needs to grow if it is to capture an estimated $60 million in revenue that leaves it every year when residents take their shopping dollars to other communities.

Rooftops

Last year, the Indianola City Council set a target of adding 5,000 residents by 2025. That would bring the total population to about 20,000, a number that Waller believes can support additional retail development.

Several areas of town are ready for residential development, with much focus on land bordering Iowa Highway 92 as it enters the city from the west.

People Co. founder Steve Bruere said his company plans to develop up to 60 acres of land for single- and multifamily residences. A Warren County native, Bruere believes the new city manager, a relatively new makeup on the City Council and a new leader at the Chamber of Commerce all have a “progressive growth strategy” and understand the need for development. However, building in the city also presents a risk for land developers that is not balanced by what Bruere said are fairly limited tax increment financing and property tax abatement programs.

Although the cost of land is less expensive in Indianola than, say, West Des Moines, the fact that it takes longer to sell houses outweighs the benefit of cheaper land.

“It’s a matter of velocity,” Bruere said.

That’s not to say there aren’t advantages to building rooftops in the city.

“There is a lot of organic growth,” Bruere said. “In a lot of ways, it’s a gateway to southern Iowa,” attracting retirees as well as people who want to live closer to their jobs in Des Moines and its suburbs.

As a Warren County native, “I kind of understand the dynamic and the story,” he said.

Tax abatement decisions

City Manager Waller will have his six-month review with the City Council that hired him, and at that time he expects some goals will be set, one of them being whether the city should expand its development incentives.

Compared with other cities, its tax abatements for residential and commercial projects are relatively modest, as is its tax increment financing program.

Waller said it is not unusual for developers to claim that the city’s incentives are inadequate in comparison with other communities in Greater Des Moines.

On the other hand, he also believes that tax revenues should not be forfeited at the expense of providing basic services.

“It’s a balancing act,” he said.

Plenty to offer

As a newcomer, Waller can marvel at the benefits of a gardening program offered by the local parks and recreation department, the prospect of riding as a passenger in a hot air balloon during the city’s annual National Balloon Classic, or taking a 20-minute drive through the countryside stretching between Des Moines and Indianola.

It’s that 20-minute drive that he sees as a selling point for the city. Bruere agrees.

“Indianola benefits from its separation from Des Moines and its suburbs,” he said.

Indianola doesn’t lack for attention

The Summercrest Hills development, on the north side of town, has generated up to $60 million in investment to date and so far offers retirement living, a range of medical clinics, a YMCA, a credit union, and, soon, a hotel.

The city’s annual hot air balloon festival draws about 90,000 people to the city every year.

The Des Metro Opera was founded in the city in 1973, and its annual summer festival is held at Simpson College. And the organization takes its show on the road in Central Iowa by offering free dress rehearsals of its main stage productions. It reaches a year-round audience of about 26,000.

For Bruere, the city has potential.

“It just has to prove itself,” he said.