City of Des Moines Ends Negotiations of Development Agreement with Krause Group for Downtown Soccer Stadium District

Des Moines, Iowa - Wednesday, August 26, 2026 - The City of Des Moines has ended seven years of negotiations with the Krause Group to bring a soccer stadium and surrounding development to the former DICO site in downtown Des Moines.

Negotiations began in 2019 for development of the DICO site and surrounding area, with a potential soccer stadium that would bring a professional soccer team in the USL league to Des Moines as well as a professional women's soccer franchise. Negotiations lasted through headwinds brought on by the Covid pandemic and economic challenges of the past several years. The City offered and committed funding for environmental remediation of the EPA Superfund site, and a global plaza for city festivals as a part of the project.

However, recent property tax legislation leading to a $12 million budget gap for the City in Fiscal Year 2028 and a further $5 million gap the following year have changed the City's negotiating position, leaving a significant funding gap for the proposed stadium district that the City can no longer responsibly commit to.

"The City has been committed to finding a solution to build this soccer stadium at this location for the majority of the past decade," Mayor Connie Boesen said. "Despite the economic opportunities this stadium and surrounding district presented, the terms that the City had been considering at earlier points in negotiations are no longer feasible or responsible to our taxpayers."

Despite this project not moving forward, the City continues to see momentum build as the downtown area transitions from a weekday office environment to a more vibrant residential and entertainment district.

"We continue to have strong economic development projects underway throughout the City, and public-private partnerships will continue to be a vital piece of those efforts as the City moves forward," Economic Development Administrator Carrie Kruse said. "The City will enthusiastically evaluate and explore opportunities for both the development of the DICO site and for bringing professional sports like men's and women's soccer to Des Moines."

Moving forward, the City has not yet identified future plans for the city-owned DICO site on the southwest side of downtown.

"In this new environment of fiscal constraints, the City must evaluate every major commitment not only for its economic-development potential, but also for its long-term financial exposure, opportunity cost, and effect on the City's ability to sustain core services," Boesen said.

Contact
Peter Zemansky
Communications Manager, City Manager's Office
(515) 210-6586
[email protected]

About the City of Des Moines
The City of Des Moines is Iowa's capital city, and our 17 departments serve more than 214,000 residents and 46 neighborhood associations. Des Moines is a leader in sustainability and provides its residents with vibrant neighborhoods, a lively downtown, and abundant leisure opportunities.
Des Moines continuously improves neighborhoods, public safety, and quality of life by offering exceptional city services and reliable infrastructure while fostering an involved and compassionate community for all who visit and live in Des Moines.
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