City of Coralville grants 100% tax abatement for new esports facility development
An esports facility is coming to Coralville.
The first-of-its-kind project will be built near the Lowe's Home Center just north of Highway 6.
The project is part of a development agreement tied to the Highway 6 revitalization plan, which the Coralville City Council approved earlier in April.
Longtime Coralville City Administrator Kelly Hayworth hopes the facility will bring people to Coralville, hopefully transforming the city into a hotspot for esports competitions.
"I think this facility will attract people from all over the Midwest, which is an important part of Coralville's economy," Hayworth said. "Hospitality and entertainment are important parts of what we do in our community, and I think this will be a unique attraction to our area."
Construction crews are hopeful the building will open in 2026, Hayworth said.
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What are esports? Where is this facility going to be?
Esports refers to competitive video games, which has surged in popularity in recent years.
The industry has continued to grow and is valued at an estimated $1.64 billion.
Some of the most popular esports games include well-known shooters like Counter-Strike: Global Offensive and its sequel title, sports games like EAFC, the successor to the long-time EA Sports soccer game franchise, FIFA, and "battle royale" style games like Fortnite.
Esports are expected to continue to grow, a notion the Coralville City Council factored into their facility approval.
Local high schools in Johnson County, like Liberty High School, Clear Creek Amana, Iowa City West, and Lone Tree, are members of the Iowa High School Esports Association (IAHSEA). The University of Iowa has an Esports arcade in the Iowa Memorial Union and an active esports league.
The Coralville facility will be the first of its kind in Iowa, open to individual gamers and groups. The building will also have the potential to host tournaments and championships.
Project specifics have not been released.
Justin Myers, the project contractor and owner of Myers Construction, is not ready to release additional information, such as size, cost, or completion date.
While the facility may attract tourists, Coralville's council believes it can also be a community gathering spot.
"More and more high schools and colleges have teams that compete; it's also available and good for all age groups, whether you're young or old," said Hayworth. "I think it is something that our local residents and visitors use. This is a completely new area and something that everybody can make use of."
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Construction, and occupancy will be tax-free
The Coralville City Council chose to exempt Lucky Pete LLC, the new facility and land owners, from paying taxes for 15 years. The abatement covers 100 percent of the taxes that the company would otherwise owe.
The esports company has created a plan to fold the facility into rough terrain that has sat vacant for a number of years.
Coralville's decision to give a 100 percent tax abatement is relatively rare and something the city does not often do, but for this project, it felt necessary, Hayworth said.
"The biggest reason is that it's an unusual site," Hayworth said. "There's a lot of peculiarities in developing that site, and it's been available for a long time; with a unique facility like this, there's some risk to it, and this is one of the ways that the City Council and Mayor felt that we can help."
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Jessica Rish is an entertainment, dining and business reporter for the Iowa City Press-Citizen. She can be reached at JRish@press-citizen.com or on X, formerly known as Twitter, @rishjessica_
This article originally appeared on Iowa City Press-Citizen: Coralville City Council paves way for esports facility development
