By Edward Lynn
EAGLE GROVE, Iowa — The Eagle Grove City Council moved forward on several major development items during its regular meeting Monday, including the approval of a tax increment rebate agreement for a new downtown project by First Bank and discussion of a potential development agreement to aid a local veteran-owned business.
Council members unanimously approved Resolution 2025-53, finalizing a development agreement with First Bank for the construction of a new downtown facility. Under the agreement, First Bank will receive a 70% tax increment rebate over 15 years, not to exceed $400,000. The rebate applies only to new value created on the property above its base assessment. The city will continue to receive 30% of the increment to support future growth initiatives.
City Administrator Bryce Davis explained that the rebate structure follows Iowa Code Chapter 15A and Section 403.9, which authorize cities to provide financial assistance for economic development projects. “This does meet the public purpose of economic development,” Davis said. He noted that infrastructure upgrades tied to the project, such as expanded water mains for improved fire protection, will be handled by the utility board and are not included in the rebate.
The site plan for the First Bank project shows the new building will be located at the corner of Lucas and West Broadway, with parking and a drive-through accessible via the alley.
The Council also held a required public hearing on the ongoing Community Development Block Grant (CDBG) project at 217 W. Broadway. Funded by a $550,000 federal grant and $280,800 in private investment, the upper-story conversion will result in six new residential rental units above the downtown commercial space. At least five of the units will be designated for low- to moderate-income (LMI) tenants for a minimum of five years. According to Davis, the project is currently 58% complete.
Following the hearing, the council authorized Pay Application No. 4 for the CDBG project via Resolution 2025-52. The approval allows a disbursement of funds to Torkelson Construction, the project’s contractor, based on verified work completed to date.
In another item, Matt Eimers, owner of K&M Storage, addressed the council during the public forum to express interest in expanding his mini-warehouse facility by acquiring recently rehabilitated city property at 922 S. Commercial Avenue. “Eagle Grove is my town,” said Eimers, a disabled veteran who grew up in Eagle Grove, emphasizing his desire to improve the facility and serve local needs.
However, Eimers’ project faces some hurdles, as Eimers’ offer to purchase the land for $3,000 was contingent upon an equal tax abatement, limiting Eimers’ investment to construction costs—and there is currently no local ordinance in place that would allow for a tax abatement, City Attorney Lynn Seaba, and Administrator Davis explained. However, the council members seemed sympathetic to Eimers’ proposed improvements. “I don’t think anyone here is opposed to your project,” said Councilman Mike Weland. Mayor Boyd ended discussion on the subject noting that it couldn’t proceed at this meeting, but it was clear that the council would consider its options in future meetings.
The council also advanced the second readings of three ordinances related to the vacation and conveyance of unused city property. Ordinance 2025-03 addresses an east-west alley between Lots 1 and 2 in the Hewett Park Addition. Ordinance 2025-04 pertains to an alley north of Lot 5 and part of Lot 4 in the Broadway Drive Addition. Ordinance 2025-05 involves an irregularly shaped tract of land that is fully surrounded by private property and no longer accessible or maintained by the city. All three ordinances are scheduled for a third and final reading at the next meeting, after which the council expects to authorize the formal transfer of the properties.
Finally, the council approved Resolution 2025-55, changing the regular meeting time from 6:30 p.m. to 6:00 p.m. going forward.
