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When a developer announced plans to turn the stagnant Crossroads Mall into a new multiuse area of stores, restaurants, a hotel and outdoor gathering spaces, the Fort Dodge city government offered financial help.
On Monday, the City Council moved to meet its obligation to Crossroads Plaza Development by approving a bond issue that will be paid off with property taxes generated at the old mall site.
In 2020, when the Ankeny firm purchased the mall property, the City Council pledged $18.2 million to reimburse the company for property acquisition, demolition and infrastructure improvements. Of that total, up to $10 million was in the form of a grant while $8.2 million would be in the form of a forgivable loan.
Already, $4 million has been loaned to the company.
On Monday, the city secured the money to make the final $4.2 million loan.
The city borrowed that money by issuing $4,355,000 in general obligation urban renewal bonds.
The bonds were offered to the market Monday afternoon and their issuance was approved by the council Monday evening.
A group led by Robert W. Baird & Co. Inc., of Milwaukee, Wisconsin, was awarded the bonds after offering the lowest true interest cost of 5.3681 percent.
Interest rates "came in lower than we anticipated," Jennifer Smith, of financial management company PFM, told the council Monday.
Councilman Todd McCubbin was absent from the unanimous vote to award the bonds.
Increased property tax revenue generated by Corridor Plaza will pay off the bonds, according to Chad Schaeffer, the city's chief development officer.
"The developer has created sufficient tax increment from the development of Corridor Plaza to finance and fund this general obligation urban renewal loan," he wrote in a report to the council.
The former mall site is now the home to UnityPoint Clinic Express, Teriyaki Madness, Clean Laundry, T-Mobile, Tidal Wave Auto Spa, Dunham's Sports, Maurice's, Shoe Sensation, Ulta, Chick-fil-A, Auto Zone, Dairy Queen and the sports pavilion.