Shellsburg, Iowa Local Business Exchange

Eleven Iowa communities will receive a combined $1.1 million in state grants to help transform underused downtown buildings into commercial spaces, housing, and new business locations.

The Iowa Economic Development Authority announced the awards November 5 through its Main Street Iowa Challenge Grant program.

The selected projects represent more than $4.3 million in estimated total investment, combining state assistance with other project funding.

Communities receiving awards include Boone, Centerville, Fairfield, Fort Dodge, Grundy Center, Lansing, Mount Vernon, Nevada, Newton, Ottumwa, and West Des Moines.

Vacant Buildings Will Gain New Commercial Uses

Several projects involve converting vacant or underutilized historic properties into spaces for independently operated businesses.

In Boone, a commercial building dating to 1895 will undergo improvements that include restoring its stone facade. Plans call for a cheese and cocktail lounge on the first floor and two apartments above.

Grundy Center will see another historic property returned to commercial use. A building constructed in 1887 as a department store has remained vacant for an extended period.

The redevelopment will accommodate a furniture and home decor showroom, along with a hair and nail salon.

In Ottumwa, a fire-damaged building dating to 1890 will be rehabilitated for a steakhouse on the ground floor and three upstairs apartments.

These projects illustrate how older commercial buildings can accommodate new businesses without requiring entirely new construction sites.

West Des Moines Project Will Create 20 Salon Suites

One of the announced projects involves converting a vacant church building from the 1930s into commercial space.

The West Des Moines property will be redeveloped into 20 salon suites intended to provide affordable space for independent businesses.

Salon-suite arrangements can allow individual service providers to operate in smaller spaces within a shared property.

The planned conversion represents a different approach to downtown redevelopment, focusing on accommodating multiple small businesses within one existing building.

The state has not announced specific opening dates or identified the future tenants of every suite.

Matching Grants Support Local Investment

The Main Street Iowa Challenge Grant program provides financial assistance for eligible building rehabilitation projects in participating communities.

Funding is administered through the Iowa Economic Development Authority’s Iowa Downtown Resource Center and awarded as matching grants to local Main Street programs for selected projects.

The $1.1 million announced November 5 represents state grant awards rather than the entire cost of the redevelopment work.

The combined estimated project cost exceeds $4.3 million.

The announcement does not establish that all construction has been completed or that every proposed business has opened.

Individual projects will proceed according to their development schedules.

More Than Two Decades of Downtown Investment

Iowa established the Challenge Grant program in 2002 to support the rehabilitation of downtown properties and encourage additional private investment.

Since its creation, the program has awarded more than $17.6 million, helping leverage over $76.8 million in additional investment.

The program focuses on established commercial districts where older buildings can be restored for productive use.

For local entrepreneurs, the resulting projects may eventually provide new storefronts, service-business locations, and opportunities to participate in revitalized downtown areas.

The November awards also demonstrate the role of local Main Street organizations in coordinating economic development projects.

Eleven Communities Selected

The 2026 awards extend across multiple Iowa regions, including smaller communities and larger cities.

While some projects will introduce new commercial tenants, others focus on restoring buildings and creating additional residential space above storefronts.

The state has not published a combined job creation estimate for the 11 projects in its announcement.

The immediate development is ...

Iowa Workforce Development announced $1,391,547 in grants to 16 manufacturing businesses on October 13. The agency estimates the awards will support training for 631 workers.

Recipients will develop training programs addressing production, machine maintenance and other workforce needs. They include Blackhawk Engineering in Cedar Falls, ConAgra Brands in Waterloo and Raining Rose in Cedar Rapids.

The awards are the first round of the Advanced Manufacturing Pathways Development program, which anticipates distributing approximately $4 million. Applications remain open on a rolling basis until funding is committed.

Eligible employers can receive reimbursement for up to 80% of qualifying training expenses, capped at $4,000 per employee and $250,000 per employer. Both newly hired and existing workers can receive training. 

Five Iowa manufacturers are receiving approximately $4.85 million in federally supported pass-through loans for equipment, facility construction and production expansion.

Combining the USDA’s project estimates, the investments are expected to support 165 new jobs:

• Rosenboom Machine & Tool in Milford: $1 million for production equipment and 78 anticipated jobs.
• Iowa Pipe Fittings near Oakland: $1 million for equipment, technology and training space, with 68 anticipated jobs.
• Hawkeye Molding in Roland: $1 million for molding equipment and 10 anticipated jobs.
• MBN Pallets in Sibley: $884,800 toward a wood-bedding production facility and six anticipated jobs.
• Industrial Hardfacing in Lamoni: $961,596 for a building expansion and equipment, with three anticipated jobs.

The financing is being routed through rural electric cooperatives under the USDA Rural Economic Development Loan and Grant program. These are loans supporting specific projects—not direct grants to the manufacturers—and the employment totals remain projections.