The City of Grimes City Council met on May 12, 2026, for a regular meeting that included action on development, public safety funding, transportation planning, population growth, and other city operations. The meeting included approval of routine agenda items, public comment, and several significant decisions affecting future city services and infrastructure.
One of the primary development discussions involved a proposed Goodwill Store site plan at 361 SE Gateway Circle. City staff presented details of the proposed commercial development, including a planned approximately 16,000-square-foot building on a 3.64-acre property. The proposal included access points, parking, stormwater management, landscaping, screening, and building design elements intended to meet city zoning and Highway 141 overlay requirements. The council approved the site plan following staff review and discussion.
The council also completed the second consideration of Ordinance 812, which establishes a 3% franchise fee on certain utility revenues from electricity and natural gas providers. Staff explained that the fee is expected to generate approximately $700,000 annually and that the city intends to dedicate the funds specifically toward public safety needs, including firefighter and deputy positions. The discussion also addressed a resident question about how long the fee would remain in place. Staff explained that the fee would continue unless the council later repeals the ordinance.
Transportation planning was another major focus. The council approved a pre-design agreement with the Iowa Department of Transportation related to future Highway 44 improvements. Staff explained that the agreement begins a long-term planning process and establishes responsibilities between the city and the DOT. Future work is expected to address traffic capacity, roadway improvements, utilities, sidewalks, lighting, stormwater, and other urban infrastructure needs.
The council also certified the results of the 2025 special federal census. Staff reported a population count of 17,809 residents, compared with the prior decennial census count of 15,392. The updated population is expected to increase annual road use tax revenue by approximately $314,000.
During public comment, residents asked questions and provided community input. A resident asked about the duration of the new franchise fee. The council deferred the response until the related agenda item was discussed. Representatives from the Grimes Area Chamber of Commerce also introduced new leadership and discussed continued collaboration with the city and local business community.
The meeting also included recognition of ongoing city operations, discussion of future tax law changes, and updates from staff and council members. Staff noted that additional analysis would be needed regarding new property tax legislation and its possible effects on city operations.
Overall, the meeting reflected continued growth in Grimes, with decisions focused on accommodating population increases, supporting public safety services, managing transportation needs, and encouraging new commercial development.
Major Discussion and Action Items
Goodwill Store Site Plan at 361 SE Gateway Circle
The council reviewed a site plan for a proposed Goodwill Store development at 361 SE Gateway Circle. Staff explained that the property is approximately 3.64 acres and is zoned C-2 General and Highway Service Commercial, with Highway 141 Overlay Zone requirements also applying.
The proposed project includes an approximately 16,000-square-foot commercial building, two full-access driveways onto SE Gateway Circle, a rear loading dock, a covered customer drop-off area, approximately 55 parking stalls, and sidewalk connections.
Staff reviewed stormwater plans, explaining that runoff would be directed to a detention basin on the south side of the property, with overflow directed to the public storm sewer system. Landscaping and screening plans included evergreen plantings and a six-foot wood fence intended to reduce visibility of the loading area from Highway 141.
The proposed building design was reviewed for compliance with C-2 zoning and Highway 141 overlay standards. Staff reported that the building would primarily use brick and precast materials, with a metal canopy feature near the entrance and drop-off area.
Staff recommended approval subject to staff comments. Council members discussed cooperation between the applicant and city staff during the review process and expressed support for the project. Formal action was taken, and the site plan was approved unanimously.
Utility Franchise Fee Ordinance 812
The council considered the second reading of Ordinance 812, establishing a 3% franchise fee on certain electricity and natural gas utility revenues. The ordinance applies to revenues from utility sales within city limits under Iowa Code authority.
Staff explained that the proposed franchise fee was discussed during previous budget workshops and meetings. The council had adopted a resident purpose statement limiting use of the funds to public safety purposes.
Staff estimated that the fee would generate approximately $700,000 annually. The discussion indicated that the funding would support public safety staffing needs, including firefighter and deputy positions.
A resident asked during public comment whether the franchise fee would be temporary or permanent. Staff later explained that the fee would remain in effect unless the council takes future action to repeal the ordinance.
The council approved the second consideration of Ordinance 812.
Highway 44 Pre-Design Agreement
The council considered a resolution approving a pre-design agreement with the Iowa Department of Transportation for future Highway 44 improvements. Staff described the agreement as an initial framework that will guide future design and project development work.
Staff explained that Highway 44 is an important regional route connecting Grimes with surrounding communities and the broader transportation network. Previous improvements have widened portions of the corridor, but significant portions remain limited compared with future transportation needs.
A prior Highway 44 study completed between 2020 and 2022 evaluated future needs and recommended a divided five-lane section to provide future capacity. A later evaluation completed between 2024 and 2025 helped refine expectations for the corridor and prepare for discussions with the DOT.
The agreement outlines responsibilities for both the city and DOT. The city will lead consultant selection, design coordination, bidding efforts, and portions of project funding related to local infrastructure such as utilities, sidewalks, lighting, curb and gutter, and stormwater improvements. The DOT will assist with right-of-way and easement activities and highway-related work.
The council approved the resolution and provided general direction for staff to begin the process of selecting a design consultant.
2025 Special Federal Census Certification
The council reviewed certification of the 2025 special federal census results. Staff reported that the Census Bureau completed its work and determined that Grimes had a population of 17,809 residents.
The updated count represents an increase of more than 15% compared with the previous decennial census count of 15,392. Staff estimated that the increased population count would generate approximately $314,000 more in annual road use tax revenue.
The council approved the resolution certifying the census results to the Iowa Secretary of State and Treasurer of the State of Iowa.
Votes, Decisions, and Direction
- The council approved the meeting agenda unanimously.
- The council approved the consent agenda unanimously.
- The council approved the Goodwill Store site plan at 361 SE Gateway Circle unanimously.
- The council approved the second consideration of Ordinance 812 establishing a 3% franchise fee.
- The council approved Resolution 05-17-26 approving the Highway 44 pre-design agreement with the Iowa Department of Transportation.
- The council approved Resolution 05-18-26 certifying the 2025 special federal census results.
- Staff received general consensus to begin the process of selecting a design consultant for Highway 44 planning work, with a future professional services agreement expected for council consideration.
Financial Matters
The largest financial discussion involved the new 3% utility franchise fee. Staff estimated the fee would generate approximately $700,000 annually and explained that the funds are intended for public safety purposes.
The council also discussed the financial impact of the special federal census. Staff estimated approximately $314,000 in additional annual road use tax revenue based on the updated population count.
The Highway 44 project discussion included future city costs related to local infrastructure. Staff explained that the city would be responsible for certain improvements outside the DOT’s main highway work, including utilities, sidewalks, lighting, curb and gutter, and stormwater infrastructure.
Policies, Ordinances, Resolutions, and Governance
The council advanced Ordinance 812, establishing a 3% franchise fee on qualifying utility revenues. The discussion focused on the purpose of the funds and the city’s intention to use the revenue for public safety needs.
The council also approved resolutions related to transportation planning and census certification. The Highway 44 resolution begins a long-term planning partnership with the Iowa Department of Transportation.
Reports, Presentations, and Updates
Staff provided a Highway 44 planning presentation describing previous corridor studies, future capacity needs, and preparation for a long-term improvement program.
Staff also updated the council on property tax law changes and stated that additional analysis with financial advisors would occur before specific impacts or recommendations are available.
Personnel, Appointments, and Organizational Matters
The Grimes Area Chamber of Commerce introduced new leadership during public comment. Representatives welcomed the new Chamber president and discussed continued cooperation with the city and business community.
No city personnel actions were reported during the meeting.
Projects, Facilities, Infrastructure, and Operations
The meeting included discussion of several infrastructure-related initiatives.
The Highway 44 project planning process will involve future roadway improvements, utility coordination, and transportation planning. Staff explained that preliminary projects may be needed before major widening work to improve traffic circulation and reduce future disruption.
The Goodwill Store project represents a new commercial development planned for SE Gateway Circle. The project includes site improvements, stormwater management, landscaping, parking, and building design elements reviewed by city staff.
During public forum, a resident asked how long the proposed franchise fee would remain active and whether it was intended as a permanent or temporary measure. The council indicated the matter would be addressed when the franchise fee agenda item was discussed.
Representatives from the Grimes Area Chamber of Commerce introduced new leadership and expressed interest in continued partnership with the city.
Questions and Answers
A resident asked whether the franchise fee would have a fixed end date or remain in place indefinitely. Staff later explained that the ordinance would remain active unless repealed by future council action.
Council members asked questions and discussed Highway 44 planning, including coordination with the school system and future transportation impacts.
The franchise fee decision may affect utility customers within Grimes city limits while providing additional funding intended for public safety services.
The Goodwill Store project may bring a new commercial development opportunity, additional services, and changes to the SE Gateway Circle area.
The updated census count may increase state road use tax funding available for city transportation needs.
Future Highway 44 improvements may affect transportation patterns, utilities, property access, and roadway conditions as planning advances.
- How will the city track the use and results of franchise fee revenue?
- What public safety staffing changes will be supported by the new funding?
- When will residents see future Highway 44 design milestones?
- How will the city communicate construction impacts related to future roadway improvements?
- What additional costs may be associated with local infrastructure improvements along Highway 44?
- When is construction expected to begin on the Goodwill Store project?
- How will the updated census count affect future city planning and funding decisions?
- What future actions will be required before Highway 44 construction begins?
Important Dates and Next Steps
- The Highway 44 pre-design process will continue with future consultant selection and project planning work.
- A future professional services agreement for Highway 44 design work is expected to return to the council after consultant selection.
- Staff will continue reviewing new property tax legislation and potential effects on city operations.
- The approved census certification will be submitted to state officials to support updated funding calculations.
Key Takeaways
- City Council approved a Goodwill Store site plan for 361 SE Gateway Circle.
- The proposed Goodwill project includes a 16,000-square-foot building on approximately 3.64 acres.
- The Goodwill site plan includes approximately 55 parking stalls and two access points.
- Stormwater management will include a detention basin and overflow connection.
- Council approved a 3% utility franchise fee through Ordinance 812.
- Staff estimated the franchise fee will generate approximately $700,000 annually.
- Franchise fee revenue is intended for public safety needs.
- The franchise fee remains in place unless future council action repeals it.
- Council approved a Highway 44 pre-design agreement with the Iowa DOT.
- Highway 44 planning is expected to be a long-term, multi-phase effort.
- Prior studies recommended future divided five-lane improvements for Highway 44.
- The city expects to manage local infrastructure components such as utilities and sidewalks.
- The DOT will assist with highway-related responsibilities, including right-of-way work.
- The city certified a 2025 special federal census population of 17,809.
- The updated population count increased from the prior census count of 15,392.
- Staff estimated approximately $314,000 in additional annual road use tax revenue.
- The Grimes Area Chamber of Commerce introduced new leadership.
- Staff continues reviewing impacts from new property tax legislation.
- Future Highway 44 design work will return to the council for additional approvals.
Official Sources
About the Public Body
- Name: City of Grimes
- Organization type: municipality
- Government body: city-council
- Location: Grimes, iowa
- County: Polk
- Provider: civicclerk
Keywords
City of Grimes, Grimes City Council, Iowa municipality, city government, May 2026 meeting, Goodwill Store, SE Gateway Circle, commercial development, site plan, Highway 141 overlay, franchise fee, Ordinance 812, public safety funding, utility revenue, Highway 44, Iowa DOT, transportation planning, infrastructure improvements, special census, population growth, road use tax, stormwater management, economic development, Grimes Area Chamber of Commerce, public comment, city planning, roadway improvements
