Stalled Stadium Project
The vision for a new soccer stadium in Des Moines, initially projected at $60 million and slated for a 2022 opening, has ballooned to an estimated $95 million as construction costs have surged.
City officials hold a lease on the southern portion of the Dico tract, the parcel earmarked for the stadium and its surrounding plaza, but they have recently terminated talks with the Krause Group over the northern site, which would require extensive environmental remediation.
Kyle Krause, chief executive of the Krause Group, contends that the municipality is treating the two halves of the development unevenly, pointing to the same Superfund‑contaminated soil that underlies both sections.
A $12 million shortfall in the city’s 2028 fiscal budget, driven by Iowa’s 2026 property‑tax cap, has rendered the previously agreed‑upon financing structure untenable, according to municipal finance reports.
While the Iowa Soccer Development Foundation secured $7 million in tax‑increment financing, the broader funding package remains incomplete because a comprehensive development agreement has yet to be finalized.
The city has pledged $13 million toward environmental cleanup and $1.5 million for plaza construction, yet the Krause Group estimates that $18.5 million will be necessary to make the northern site safe for building.
The stadium is intended to become the home ground for professional men’s and women’s teams owned by Krause, but the project’s future hinges on resolving the financing gaps and completing the remediation work.
Environmental and Financial Hurdles
The 43‑acre former Dico plant, once a hub for industrial solvent production, was designated a Superfund site after testing revealed contamination with trichloroethene, vinyl chloride and pesticide residues.
Remediation costs are further complicated by the need to address both the stadium footprint and adjacent development, a challenge that has intensified the fiscal strain on the municipality.
Despite the legal lease obligating the city to the stadium portion, officials continue to explore alternative funding mechanisms and partnership models to revive the stalled venture.