Developer of Failed $55 Million Johnston, Iowa, Youth Sports Complex Files for Bankruptcy

Developer of Failed $55 Million Johnston, Iowa, Youth Sports Complex Files for Bankruptcy

Ignit Johnston LLC filed Chapter 11 after a judge ordered it to pay a bank $4.2 million over the unbuilt youth sports complex near Des Moines. The city still wants $3.8 million.

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The developer behind a youth sports complex that was supposed to rise in Johnston, Iowa, has filed for Chapter 11 bankruptcy, Business Record reported. The filing by Ignit Johnston LLC in the U.S. Bankruptcy Court for the Southern District of Iowa came days after a judge ordered the company and co-founder Chad O'Meara to pay Lincoln Savings Bank $4.2 million plus interest, costs and attorney fees.

What Ignit Johnston Owes

The bank's claim is only part of it. According to Business Record:

The City of Johnston is suing for $3.8 million in grants and fees, saying the developer defaulted on its development agreement. That case is pending in Polk County District Court.
More than $1.8 million in mechanics liens sit against the property.
A sheriff's sale had started. The bankruptcy filing puts it and other collection efforts on hold.

The developer has 120 days to file a reorganization plan, and a statement from its law firm said it still hopes to finish the project.

The $55 Million Plan for a Youth Sports Complex Near Des Moines

The plan called for more than 200,000 square feet of indoor space on about 30 acres off Merle Hay Road, with a competition track and courts for basketball, volleyball, pickleball and futsal. O'Meara described it in 2023 as a $55 million development. Buying Sandlot, which tracks the youth sports business, noted it was meant to open in 2024 and never did.

The Johnston case is a reminder of how much money is chasing youth sports facilities, and how a project can fail before a single game is played. Follow the business side on our youth sports page.