Iowa Hotel & Lodging Association President: $100M ARPA investment in tourism, community enhancements ‘another way to introduce ourselves’ to nation

(The Center Square) – Iowa will use $100 million in American Rescue Plan Act funds to fund Destination Iowa, the state’s tourism program.

According to Gov. Kim Reynolds, the program aims to improve communities’ quality of life and attract visitors and new residents to the communities and the state.

Cities, counties and nonprofits can apply for the Economically Significant Development and Outdoor Recreation grants. Cities and counties (or nonprofits in coordination with a city or county) can apply for the Creative Placemaking grants.

Communities can apply for four different Destination Iowa grants:

Economically Significant Development.Outdoor Recreation.Tourism Attraction.Creative Placemaking.

“Communities in all corners of the state are creating unique destinations that give visitors a reason to explore and residents a reason to stay,” Reynolds said in a news release. “Destination Iowa will help more communities across the state move forward in their efforts to boost tourism and economic growth while enhancing the quality of life for Iowans.”

Iowa saw record usage of state and county parks and recreational bike trails over the last two years, but the state’s hospitality industry’s employment is just over half of what it used to be, the release said. Visitor spending has decreased 29% because of the COVID-19 pandemic, the release said.

Economically Significant Development funding grant applicants must demonstrate how the project will attract people outside the local community or outside of Iowa. Applicants can receive up to 25% of eligible project costs. The projects must involve vertical infrastructure.

The Outdoor Recreation grants are meant to encourage tourism through development and enhancements for outdoor attractions. They can receive grants of up to 40% of eligible project costs.

Applicants for the Outdoor Recreation and Economically Significant Development funding grants must secure at least 60% of necessary funding by the time they apply. There are no minimum or maximum project costs for these grants.

Projects that do not qualify for those grants may qualify for Tourism Attraction Fund grants, which will aid with construction or remodeling, property and equipment acquisition, and electrical, architectural, and engineering expenses. The awards can fully fund expenses for awards up to $500,000. Awards of more than $500,000 are limited to 25% of the comprehensive proposal or all eligible expenditures, whichever is less.

Creative Placemaking grants are designed to help municipalities develop regionally significant quality of life projects to appeal to the current or future workforce with a substantial regional or statewide economic impact and a “signature project” that is primarily vertical infrastructure available for public use.

This pilot project will award funding to at least one urban and one rural community, for a maximum of three recipients. Minimum investments for cumulative proposals are based on city population. The projects must increase diversity of cultural, arts, recreational, entertainment or educational activities in Iowa and encourage Iowa’s workforce recruitment and retention.

The state will start accepting grant applications May 9. Projects must be completed by July 2026.

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