That Open Lot Near Polk City's Town Square Is Up for Sale. Here's What's Actually Being Decided.

How long can a city hold a piece of land it never found a use for? In Polk City the answer so far is fifteen years. That's how long the open grass at the northwest corner of S. 3rd and Davis Streets, a short walk south of Town Square, has sat in city hands. On Thursday, October 15, 2026, at a special City Council meeting, the council holds a public hearing on selling it.

Most of the talk around town has been about what might go there: apartments, maybe a coffee shop. The council's actual question next week is narrower. It is deciding whether to sell, and on what terms. The building plans come later. And if the plan goes ahead in the order the developers propose, the apartments get built first. The commercial space people are hoping for comes last, and nobody has signed on to fill it.

A lot the city bought for one plan and kept for fifteen years

The address is 510 S. 3rd Street, roughly 2.9 acres. On its page about the sale, the city says the land "is not a designated City park, although residents may be familiar with the property as an open green space."

The city bought the parcel in 2011 for $150,000 for a housing project that never moved forward. The city says it hasn't had another planned public use for the land since. This isn't the first attempt to sell it, either. An earlier city request for proposals with a March 18, 2024 deadline pitched the same ground as a spot for a privately owned mixed-use building that would combine shops and housing. That earlier RFP also called for a 10-foot multi-use trail along S. 3rd Street.

The 2026 attempt got further. According to the city's timeline, HBU Development and DEV Partners presented a concept to the council in April. The city then issued a new request for proposals in May, with responses due at 10 a.m. on June 3. Two proposals came in. One arrived on time and one arrived after the deadline. A review committee of the mayor, two council members, two Planning & Zoning commissioners and city staff interviewed the developers and recommended HBU/DEV Partners.

The offer matches the 2011 price, dollar for dollar

The developers are offering $150,000 cash. The city's staff memo calls that out directly. The city paid $150,000 in 2011, and a sale would return the same $150,000.

So the city wouldn't make money on the land itself. The case for selling is about what happens after. The same memo estimates the project would generate $345,113 in property taxes over its first five years, split among the school district, city, county and other taxing bodies. The developers have also stated a $6.2 million investment in the residential buildings. The city's FAQ gives the reasoning: selling "would put the property back on the tax rolls while creating an opportunity for new housing and commercial development."

One more term matters. Under the draft purchase agreement, the developer isn't asking for tax increment financing, or TIF, on the first phase. It keeps the right to request TIF for the second phase. That's a reserved option, not an approved incentive. If it ever comes up, it would come up when the commercial building is on the table.

Apartments come first, the commercial building comes second

The plan has two phases, and the order shapes what changes on the ground.

Phase 1 is two 16-unit apartment buildings, 32 units total. The mix is 20 one-bedroom and 12 two-bedroom units. The developers' proposed rents are about $1,150 a month for a one-bedroom and $1,500 a month for a two-bedroom.

Phase 2 is one commercial pad. The city memo estimates it at 3,500 to 5,000 square feet. The developers' September presentation puts it at about 4,800 square feet at the corner of S. 3rd and Davis.

The concept also shows parking and access from Davis Street and a connection to the planned trail corridor. The city notes that the renderings are conceptual and could change during review.

The local partner explains some of the attention the commercial piece is getting. The city describes HBU Development as Polk City–based, with more than a decade of experience building restaurants and convenience stores. DEV Partners brings multifamily experience across central Iowa. The city's own FAQ addresses the question directly:

"Will there really be a restaurant or coffee shop there? Not necessarily. The developer has identified restaurants, coffee shops, retail, fitness/wellness and professional services as potential uses for the commercial portion of the property. No specific business has been announced or approved."

What a "yes" on October 15 sets in motion

The city has been clear that the hearing is one step, not final approval of the development. If the council approves the sale, here is what still has to happen before anything gets built:

1. The developer buys the land for $150,000 and applies to rezone it.
2. The rezoning goes through Planning & Zoning review.
3. The City Council holds another public hearing on the rezoning.
4. The city reviews and approves a detailed site plan.
5. Building permits and the rest of the normal administrative reviews follow.

That gives residents at least two more formal chances to weigh in after next week. If the council votes no, the city keeps the land and it stays as it is. The city also notes that the council has said it wants to sell the land for private development and could look at other development opportunities.

Why the hearing moved to a Thursday in October

The hearing was first set for the regular council meeting on September 28. The city moved it to the October 15 special meeting "to ensure all required steps in the public hearing process are completed and to allow for additional public awareness and participation." If you can't attend, the city is taking comments ahead of time at [email protected] and will pass them all to the council. The sale page also lists the city manager's office at (515) 984-6233 for questions. The rescheduling notice and the full background are on the city's public hearing notice and its 510 S. 3rd Street sale page.

This vote is also happening alongside a bigger planning effort. Since late June, the city has worked with Snyder & Associates on a vision study for Polk City's main transportation corridors and Town Square. The study focuses on safety, accessibility, connections, local businesses, and keeping the town's character. That study is a plan, not a construction project. Still, a new building at the S. 3rd and Davis corner, with a trail connection, would sit right on one of the corridors the study is about.

The square this lot would connect to

Town Square is the one-acre park at 107 S. 3rd Street, ringed by local businesses. The developers' list of possible commercial uses can be read against what's already open there. City records from 2026 name Fenders Brewing, Papa's Pizzeria, Hacienda Vieja and Polk City Pub as participants in this summer's square events. April council minutes also record a retail alcohol license for Arcadia, effective May 27, 2026.

Two days after the hearing, the square fills up anyway. Fall Fest runs Saturday, October 17, from 2 to 6 p.m. on Town Square, with kids' activities, seasonal vendors and food. Polk City's annual Trick-or-Treat Night is Saturday, October 31, from 6 to 8 p.m. Participating homes are asked to turn on their outdoor lights.

The year's other new gathering spot is on its last few weeks. The Soggy Frog Marina Bar opened at Saylorville Marina, 6170 NW Polk City Drive, by Memorial Day weekend. It serves food, has live music, and holds up to 500 people. KCCI described it as a seasonal venue running from Memorial Day to late October. Polk City's newest place to eat sits on the lake. A possible one on S. 3rd Street is still a line in a Phase 2 plan.

If you'd like to know how a project like the one at S. 3rd and Davis tends to affect the blocks around it, from the rezoning hearings to the years after construction, the team at Boutique Real Estate follows Polk City's council agendas closely and is happy to talk it through, whether or not you're thinking about a move.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.