The Linc's $150 million development in Ames delayed by inflation, high interest rates
A long-awaited Ames development may start construction by the end of the year.
The Linc on Lincoln Way would transform a section of land between Clark Avenue and Kellogg Avenue into a place ripe with shopping opportunities, restaurants, a hotel, and apartments.
Christensen Development and Hunziker Companies initially hoped to break ground on the $150 million development in 2023, but Hunziker developer and project lead Chuck Winkleblack said inflated material costs and high interest rates have slowed progress.
“We continue to work through our proforma for the project,” Winkleblack said. “We are still very excited about the project and continue to massage different parts of the project to a point where it makes financial sense to go forward.”
Ames Planning and Housing Director Kelly Diekmann said the city still hasn't reached an agreement with the developers nor have final blueprints been approved. Diekmann said a completion date hasn't been established with Christensen Development, either.
"The developer has been in contact with us over the past few months and we expect them to restart interest in the project this spring," Diekmann said. "There is no specific timeline for construction at this time."
The goal, Winkleblack said, is to move the project forward in the second quarter of 2024 and start construction.
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What will be built at The Linc?
Construction is expected to be done in phases.
Phase I is expected to include a hotel and conference center, a mixed-use building on Kellogg Avenue with 14,400 square feet of retail space, up to 130 apartment units, and an open-air commercial plaza at the center of the development.
The hotel is expected have more than 100 rooms, a 15,000-square-foot conference center, a rooftop restaurant and a private parking garage with 200 parking spots, according to the original plans released in 2023.
The Linc's second phase would include a residential building on Clark Avenue with up to 130 apartments that could also include ground-floor commercial space, plus an office and retail building that may also have apartments on its upper floors.
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How will Ames help pay for The Linc development?
Developers estimate the project will generate incremental taxes of up to $52.4 million over 20 years.
The city plans to commit $42 million in tax increment financing over 20 years — the biggest incentive package Ames has ever offered. It would expire in 2045 or when the developers receive $42 million in rebates, whichever comes first.
Ames would use $10.2 million in TIF to construct the 200-space public parking garage north of the train tracks. The garage would be built for possible future expansion.
The city said in December they expect The Linc to generate up to $10 million in sales and hotel tax receipts over 20 years.
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Celia Brocker is a government, crime, political and education reporter for the Ames Tribune. She can be reached at CBrocker@gannett.com.
This article originally appeared on Ames Tribune: Construction on The Linc development in Ames could start in 2024
