CyTown Announcement - Monday 9/19 (Links in OP)

MJ271

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With infrastructure for phase 1 being completed next year I wonder when we hear about some tenants. From a previous podcast Pollard was on it sounded like tentative agreements may be in place with at least a couple anchors (guessing the brewpub and medical building. Very interested to hear who those will be.
I definitely think you're right on those two already having tentative agreements, otherwise they wouldn't be referencing what they'll be. I assume the medical building would be a new McFarland Clinic location since Pollard mentioned athletes getting treated there.
 
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CloniesForLife

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Holy **** this is exciting! Can't wait. I know it's just a few days a year but that place will be very busy during career fair days with all the employers in town
 

GMackey32

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I definitely think you're right on those two already having tentative agreements, otherwise they wouldn't be referencing what they'll be. I assume the medical building would be a new McFarland Clinic location since Pollard mentioned athletes getting treated there.
McFarland Clinic and Toppling Goliath are the two I've heard from an extremely reputable source
 

Urbandale2013

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You can't think of, or haven't heard, any alternatives between no investment and CyTown as laid out?

You think CyTown design should be exactly as planned pre pandemic even though interest rates and business occupancy rates have changed dramatically?

Again, part of project is great. Need hotel for recruiters badly.
No your suggestion is just absolutely horrific and would be a huge money loser. As others said it would look bad too.

It shouldn’t be exactly as planned and it has changed significantly since then. Interest rates are a constantly evolving thing. I’m not sure how that affects what you build there. It may affect when stuff gets done but not what gets done.

Occupancy rates are an issue nationwide but again I don’t think that is an issue here. Retail is a different animal and the types of places that will be here are not going to have problems. Office space is a concern but as others said there is a lot of demand with the research park. I think the office leasing demand will be there because of the school.
 

Linusvanp3lt

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Are you suggesting that these are permanent and not fluid?
Are you suggesting WFH won't be higher than pre pandemic permanently? Are you not aware of this consensus and pull back if office build outs? There are hundreds of examples of letting leases expire, cancelling builds. I've seen estimates at 30% wfh moving forward.

Interest rates are higher, and likely will be during next 3 year timeline when they would take on debt than when project was originally announced. Who knows on permanent, but cost to service debt has gone up.
 

2speedy1

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I am thinking they would have employee parking and that's it. I can't see someone wanting to deal with football gameday traffic to drive to a retail shop there, shop for 30 minutes, then drive out again.
Yeah that is my thinking, but those would be on specific game days, ie 6 or 7 days per year. Only football do we use that much parking.

The rest of the year they probably would have specific parking for fans and for businesses. Also I assume the Garage spaces talked about would be for specific lease holders of the suites and businesses, apart from a specific public garage being built in the area for the convention/hotel/stephens etc.
 
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GMackey32

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Are you suggesting WFH won't be higher than pre pandemic permanently? Are you not aware of this consensus and pull back if office build outs? There are hundreds of examples of letting leases expire, cancelling builds. I've seen estimates at 30% wfh moving forward.

Interest rates are higher, and likely will be during next 3 year timeline when they would take on debt than when project was originally announced. Who knows on permanent, but cost to service debt has gone up.
ISU research park is out of space. If you think Jamie hasn't forecasted ANY of this into the project before revealing this, I've got beach front property in Arizona to sell you.
 

cyIclSoneU

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If Jamie didn't take it over, it was going to die anyways. The City of Ames and its residents enjoy all of the extras Iowa State brings to their community but want no part in helping fund it. So Jamie bluntly told them how its going to be.

That’s no different than the softball stadium.

I’ve said repeatedly I understand why a performance venue is at the bottom of the AD’s priority list. I also think a performance venue is a really important piece of our campus.

Maybe it was an idle threat but it’s one that he was blasted for and has since entirely backed away from, so it seems like it only put egg on his face for no apparent reason.
 
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theshadow

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Maybe it was an idle threat but it’s one that he was blasted for and has since entirely backed away from, so it seems like it only put egg on his face for no apparent reason.

Mostly because the projected $30-35M deficit ended up being around half that when it was all said and done, so the most drastic measures didn't need to be taken.
 

ribsnwhiskey

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You can't think of, or haven't heard, any alternatives between no investment and CyTown as laid out?

You think CyTown design should be exactly as planned pre pandemic even though interest rates and business occupancy rates have changed dramatically?

Again, part of project is great. Need hotel for recruiters badly.

My advice is, don't worry about it.
 
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GMackey32

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That’s no different than the softball stadium.

I’ve said repeatedly I understand why a performance venue is at the bottom of the AD’s priority list. I also think a performance venue is a really important piece of our campus.

Maybe it was an idle threat but it’s one that he was blasted for and has since entirely backed away from, so it seems like it only put egg on his face for no apparent reason.
I agree it's a really important piece of our campus. Nobody else was willing to step up to the plate to save it so Jamie decided to. It was an idle threat but nobody was willing to see eye to eye with him until they had skin in the game. There was a lot of animosity between athletics and academics during that time.
 
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trevn

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Way too much capital investment. P&L is empty 200+ nights a year. And the mega districts like this are actually becoming out of favor nationally.

I like idea of business between stadiums, it's lacking. Cut down bldgs/capital investment 75%, add in scale up/scale down infrastructure (like power for food trucks, string lights, crushed limestone). Beer gardens with shared large wooden tables, plant some trees, could make a cool atmosphere for less cost.

For business office space, is it adding jobs in Ames? If not, it's just competing with downtown Ames and Campustown.

For consumer spend, will it cause more to spend in Ames? I think could get similar spend if all outdoor with a lower cost option (scalable up and down detailed earlier). This plan does not seem to be optimized for ROI. If want year round spend, need climate control for winter. Wild to me to see this much infrastructure, but no 4 seasons atrium for a significant portion of middle area.
Crushed limestone and string lights? You serious? County fairs have better set ups than that.
 

CascadeClone

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Are you suggesting WFH won't be higher than pre pandemic permanently? Are you not aware of this consensus and pull back if office build outs? There are hundreds of examples of letting leases expire, cancelling builds. I've seen estimates at 30% wfh moving forward.

Interest rates are higher, and likely will be during next 3 year timeline when they would take on debt than when project was originally announced. Who knows on permanent, but cost to service debt has gone up.

I think the amount of space being built, in Ames, in that location, is going to be fairly resistant to the macro-level trends you are talking about.
 

CapnCy

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That’s no different than the softball stadium.

I’ve said repeatedly I understand why a performance venue is at the bottom of the AD’s priority list. I also think a performance venue is a really important piece of our campus.

Maybe it was an idle threat but it’s one that he was blasted for and has since entirely backed away from, so it seems like it only put egg on his face for no apparent reason.
A lot of credit to Wintersteen for making the move....my guess is at that time (where JP took some heat) he hadn't fully thought through all of the messaging....because the parking additions and now revenue to "reinvest" in the arts seems to be in a better spot than years ago (and Wintersteen would have had to figure that out, no matter if Athletics was the one doing it).

It probably isn't unique to Ames/ISU regarding surrounding areas concerns with what the university is doing...but i remember the softball/track "fears"...you would have thought they'd have the lights on full blast all night, every night and it'd be filled with wild people. I promise you, there was probably more concerns in the 70s-90s due to Towers than the low key events they are hosting out there.....and I for one will remind those types of people that all the hotels/meals/gas bought during those events helps the Ames community.