Legacy Plaza greenspace provided $50K from city despite scrutiny over funding

Despite knowing there would be a shortfall in a TIF district fund balance, the Newton City Council felt it necessary to provide DMACC Newton Campus with $50,000 in order to better the college’s chances of acquiring a Community Attraction & Tourism (CAT) Grant for the Legacy Plaza greenspace project.

The CAT Grant was established by the State of Iowa as a way to assist projects that provide recreational, cultural, entertainment and educational attractions. The funds are used to help communities create transformational projects that can enhance the vitality of a region and the state overall.

In October 2024, DMACC launched a multi-million-dollar fundraising campaign for the Legacy Plaza greenspace project. At the time of its announcement it was revealed that more than half of the fundraising goal had already been contributed by alumni, area residents and businesses. But there is still more to go.

DMACC leaders attended a recent council meeting to advocate for the project.

Joe Pugel, DMACC’s longest-serving board president who recently resigned from the college’s board of trustees, spoke in favor of the project and the allocation of funds from the city. Pugel has been involved with the development of Legacy Plaza for some time, and he said it is important to keep momentum going.

“We are committed in continuing our fundraising,” Pugel said during the July 7 city council meeting before officials took the matter to a vote. “…We have picked most of the low-hanging fruit, and it’s come time now we need to pursue grants available, which brings us to the subject today: the CAT Grant.”

The Vernon Company, a local and family-operated promotional products supplier that has been around for more than 120 years, backed the greenspace project in a big way by offering a $600,000 gift, which will go toward the centerpiece sculpture. Pugel estimated the art piece will be installed sometime in September.

“With the city’s help and your approval of $50,000 CAT Grant match, we can all be proud to be a part of this transformative project,” Pugel said. “And it does go with your city’s goal of economic development, placemaking, making Newton a better place to live, work, play and learn, and (improve) quality of life.”

Rob Denson, president of DMACC, is very proud of the relationship the college has with the Newton community; its campus continues to do very well. As a board member of the Iowa Economic Development Authority, Denson said other economic development leaders in the state are excited about Legacy Plaza.

Plant 1 Lofts is offering unique living spaces for tenants. Gezellig Brewing Co. and Murph & Mary’s Pub are consistently bringing customers to the courtyard for pizzas and beer. Denson said these inclusions to Legacy Plaza are creating an exciting atmosphere, and the greenspace will no doubt enhance that.

“It’s going to be really great access for everybody that wants to use it,” Denson said to council members. “Clearly the farmers markets have been there for a couple weeks and we’re really excited about growing more attention to that area. The greenspace itself is a $2.9 million project.”

In addition to the art piece, Denson said the greenspace will also have a pavilion that will double as an ice skating rink in the wintertime.

To date, DMACC has collected more than $2.3 million in donations, grants and in-kind contributions for the greenspace project. Denson said the $50,000 from the city could generate $580,000 from the state, allowing DMACC to finally move the project toward completion.

Even though the resolution was for a $50,000 allocation to DMACC, city staff recommended council only approve the $10,000 funding level.

Council member Mark Hallam was ultimately in favor of the $50,000 allocation. With Denson retiring and Pugel, a Newton resident, now resigned from the board, Hallam said it is important for council members to demonstrate how excited they are about Legacy Plaza. However, Hallam knows there is a tradeoff.

“Coming from the North Central TIF this would require some tradeoffs to consider. I think we should consider those tradeoffs,” Hallam said. “It might be necessary to delay street projects or parts of street projects for a year or two in order to finance this. But I’m certainly willing to consider those tradeoffs.”

Limited funds from the North Central Urban Renewal Area is the main reason why council members Stacy Simbro and Steve Mullan were against the $50,000 allocation. Even more so when MercyOne Newton Medical Center was requesting the same amount of money that same night.

MercyOne Newton Medical Center was also asking for $50,000. To Simbro, he felt more comfortable putting the North Central TIF balance in the negative if the funds went to the hospital’s expanded emergency room project, which he said is more of a need in the community.

“That puts us, I believe if I remember right, $75,000 in the hole on that TIF if we do both the hospital and DMACC,” Simbro said. “So it is a tradeoff, but what don’t we want to spend money on coming up? …I don’t understand how we can have a TIF be in the negative. How do we support that?”

While not opposed to giving money to both organizations, Simbro was concerned about adding more debt to the TIF. Hallam argued both projects are important and that the only tradeoff would be a one- or two-year delay in street projects in that area. Council member Randy Ervin was hesitant at first.

“Then I started doing a little digging and research and talking with people,” Ervin said. “I’m one to move forward, and we’ve talked about that a lot as a city council. Where is the city going? What do they have to offer? Who are we partnering with and why? I think DMACC is a great partner.”

Ervin also commended the Vernon Company for getting the sculpture secured. He recalled a recent visit to the Newton Farmers Market, likening it to a “major festival atmosphere” and emphasizing that location’s role in providing a positive experience for both residents and non-residents.

“I’d be very proud partnering with Vernon and DMACC to give them the $50,000,” he said. “Let’s grow this city with an area that would invite people to town.”

Council member Melissa Dalton also had positive comments about the farmers market, which only just recently moved to Legacy Plaza and has consistently drawn hundreds of people every Tuesday to the greenspace. Dalton said it is a great space to have in the city that has the potential for more opportunities.

Mullan agreed both projects are noble, but he pressed the council to find the money and identify the projects that will have to be delayed to finance their decision. Council member Joel Mills sided with Hallam, Ervin and Dalton, saying a $50,000 contribution from the city strengthens DMACC’s chances of get the CAT Grant.

Newton City Council voted 4-2 in favor of providing $50,000 to DMACC.