If the purchase is approved, the council will promptly lease it back to its original developer and use the lease payments to retire the debt incurred to buy the property.

City ownership of the pavilion has been proposed as a way to ensure that the huge building is finished and eventually plays its intended role in drawing people to Corridor Plaza.

“It’s a key element,” City Manager David Fierke said. “This is the cornerstone piece to Corridor Plaza, so it has to get done.”

A city purchase of the pavilion emerged as an option when the developer, M & M LLC, of Ankeny, was unable to get the needed private financing for the project.

According to the proposal before the council tonight, the city would buy the site from 3 & 1 Properties, of Fort Dodge, for $10,117,066.

The city would make an initial $2.6 million payment, with the rest of the money to be paid at the closing of the sale.

The city will issue about $9.5 million in bonds to get the money to buy the pavilion.

Fierke said that debt will be paid off with rent income from M & M LLC. He said the city will also have the option of using sales tax revenue generated at Corridor Plaza to pay off the debt. Using property tax revenue to pay the debt would be a last resort, he said.

“Our intention is that the taxpayers aren’t going to pay a thing for it,” he said.

The planned city purchase of the pavilion comes on top of other local government aid approved for it. The council approved a $2.6 million forgivable loan and annual payments of $275,000 from 2026 to 2031.

The building will be transferred to the developers once their private financing is secure, which is expected to be two years from the date of the agreement. The city will retain the right of first refusal on any property sales in the future.

The pavilion, located on the South 25th Street side of Corridor Plaza, will house basketball and pickleball courts, plus a restaurant. It is expected to open this spring.