The City of Clear Lake has been awarded $4,370,000 toward its Clear Lake Surf District project.

Iowa Governor Kim Reynolds and the Iowa Economic Development Authority (IEDA) announced  $13.97  million in Destination Iowa grant funding  for projects in Clear Lake and Davenport on Friday, Dec. 2.  The $100 million program, announced in April, invests in transformational projects that will bolster the quality of life in Iowa communities and attract visitors and new residents.  

The total cost of projects identified in the application made by the City of Clear Lake and North Iowa Cultural Center and Museum (NICCM) to the State was $10,924,000.  The grant award of 40 percent will provide $4,370,000. 

The funds will be used to assist in the expansion and relocation of Clear Lake’s Music Enrichment Center to allow for improved performances and educational experiences; gateway and streetscape enhancements around and on Buddy Holly Place; and waterfront connections from the Surf Ballroom to the lakeshore. 

In September, the Clear Lake City Council met in special session to formally adopt two resolutions dealing with the application for the IEDA Creative Placemaking Program. Chief among the qualifications for the grant was that both public and private investment must be demonstrated.  In Clear Lake’s case, that was accomplished with a “bold initiative”  which has the City as the lender to the non-profit 501c3 to provide the necessary capital to build and own a 45-room boutique hotel. The nonprofit will then contract with a third party manager to operate the hotel. 

“The Oaks” will be reminiscent of the former hotel by the same name which stood on the site of the Hilltop Motel from 1893 to 1922. The Hilltop Motel has already been acquired for the project. With the hotel representing private investment in the area, not eligible for any grant funding, State grant money will be used for other aspects of the overall Surf District project.

A new Music Enrichment Center (MEC) for the Surf will  be constructed immediately west of the ballroom, replacing smaller buildings east of the ballroom which are currently used. It will provide expanded space for ballroom activities with a rooftop deck, concessions, meeting/conference rooms, offices, retail space and storage. 

A waterfront component of the plan is considered very significant. Although the original Surf Ballroom was built on the lakeshore with large windows facing the lake, a roof-top garden and boardwalks, the current ballroom across the street from the original site has no view of the lake. The new Surf District plan uses the yard of the Fox home across from the ballroom which the Surf already owns, and expands it by acquiring a residential property next door.

Other components of the plan include a Surf District Lighthouse Visitor Center at the site of the current Surf-owned restaurant known as the Legacy Grill. The lighthouse would be a nod to the A&W Light House Drive Inn which was located in the Surf’s parking area in the 1960s. A new lighthouse would hold a welcome center, exhibit space, restrooms, and possible food service and small theater. 

At Monday night’s City Council meeting the mayor and Council representatives celebrated the announcement and said they believe it will spark more interest in private development along Buddy Holly Place and 7th Avenue North.  

City Administrator Scott Flory shared the enthusiasm for the transformative projects, but cautioned change will take time.  

“We can celebrate, but we’ve got a long way to go,” said Flory.

“This is great news for Clear Lake and all of North Iowa.  The Surf has been a core part of our community identity for a long time, and this grant is an incredible opportunity to build improvements into the whole Surf District that will continue to make it relevant for decades to come,” said Chad Schreck, president and CEO of the North Iowa Corridor Economic Development Corporation.  “The City basically had a two to three-month timeline to put a transformational project together by the state’s deadline, and Scott Flory and the team at the City did an amazing job putting together a great vision, plan, and application to make this happen.”

An award to the City of Davenport was also announced Friday.  It will receive $9.6 million to put toward three signature projects that combine art, architecture and play. The projects to receive funding include Main Street Landing, an all-season riverfront plaza for both recreation and events; technology enhancements to the lighting on the Davenport Skybridge; and the creation of an evanescent light field at the Figge Museum. These projects are part of a larger creative placemaking effort and represent 40% of $193 million in public and private investment in the Davenport riverfront area. 

Funding for the Destination Iowa Grant Program comes from the American Rescue Plan Act. Governor Kim Reynolds set aside $100 million to support new tourist attractions and enhance existing sites; $20 million was originally designated for Placemaking Grant. 

Funded projects must be completed by June 30, 2026.