Lakin Foundation gives $165M to reshape Southwest Iowa

ATLANTIC — Revitalizing a small town can mean cleaning up vacant lots, sprucing up downtown and holding some events to boost foot traffic for local shops.

The vision for revitalizing about 50 communities in Southwest Iowa goes much further than that — with millions of dollars of investment anticipated each year toward addressing what an official describes as "a stark reality of depopulation, economic stagnation and the looming threat of extinction" for many of the cities.

Last week, the Charles E. Lakin Foundation announced a $165 million gift, endowing 23 funds targeting goals set by the larger communities of Pottawattamie County, excluding Council Bluffs, as well as Cass, Fremont, Mills, Montgomery and Page counties.

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Steve Wild, president of the Lakin Foundation — named after the man who at the time was the largest single landowner in the state — contrasted the development of Southwest Iowa over the 120 years with eastern Nebraska, fueled by growth in Omaha and more recently suburban communities near it.

"The census numbers tell a heartbreaking story," Wild said at an event Tuesday in Atlantic. "The contrast is stark. If you look at the rural population in Southwest Iowa, it's decreased by a staggering 40 percent. But, in the meantime, the rural population in east-central Nebraska has grown by 16 percent.“

An analysis of census data shared by the Lakin Foundation found the peak population in Southwest Iowa was in 1930, and that population has dropped by 26,000 people — or 12.5 percent — between 1930 and 2000. But the decline is even more stark when Pottawattamie County, which has grown in the region around Council Bluffs, is excluded.

"This difference between our two regions paints a sobering picture. It is one that we refuse to accept," Wild said. "Today, we are here to change the narrative."

Donna Dostal, president and chief executive officer for the Community Foundation for Western Iowa, said the priority for the funds will be affordable and workforce housing, along with access to child care.

"Today is an announcement of the true transformation of Western Iowa," Dostal said. "We feel that this philanthropic investment will help jump-start not only economic stability but also other philanthropic investments into those communities."

Gov. Kim Reynolds praised the "transformative investment" in Southwest Iowa, noting that the foundation's objectives aligned with that of the state government.

"Anyone who wants this quintessential Iowa experience will find it driving through the rolling hills, stretching farmland and rural town of southwest Iowa," Reynolds said. "These are places where community comes first, neighbors look out for each other and 'Iowa nice' — it is a way of life. In so many ways, this region embodies our state at its best."

With the rise of remote work and rising cost of living, Reynolds said communities like Atlantic have "more to offer than ever before," including their "uniqueness, affordability, opportunity and small town charm."

"More housing, as you heard, is a key piece of the puzzle," Reynolds said. "It is so much more than four walls and a roof. It's the foundation of a growing workforce, unmatched quality of life, thriving local economy and a more prosperous future for the entire region."

Wild said the aim of the Lakin Foundation's major investment is to stabilize the populations of the communities and then to start growing them and bringing businesses back to Southwest Iowa through addressing housing and child care shortages.

Each community will have an annual infusion of cash, starting next year, Dostal said, with 5 percent of the endowment expected to be given in grants to nonprofits and organizations in the communities each year, while additional gifts and investment revenue continue to grow the resources into the future.

Additionally, the dollars are available to loan toward larger projects that would be expected to pay back the funds.

The Lakin Foundation identified 23 "anchor cities," each of which will receive their own fund and many of which will work with smaller surrounding cities — dubbed "member cities" — on grant proposals.

The largest, Atlantic, will have $23 million in initial funding, meaning $1.15 million in grant funds would be available on an annual basis — with that amount expected to grow. That's on top of investments in big projects, such as the current 144-unit housing development being built alongside a child care center and expanded YMCA in Atlantic.

"We really are not focusing necessarily at all on low- to moderate-income (housing)," Dostal said. "We're looking at market rate housing that really does help build communities and build generational wealth."

Christina Bateman, president and cofounder of Vision Atlantic, said the people in her community are the best thing about Atlantic.

"But like all communities, we have challenges: a lack of quality, affordable child care, an old and limited housing stock and limited quality-of-life amenities, all of which have contributed to a population decline of about 500 people in the last 25 years," she said.

The Vision Atlantic revitalization effort will bring a significant expansion of the YMCA into a regional hub of activity, along with a child development center that can provide care to up to 300 children and a subdivision that will build 144 residences — including a mix of duplexes, tiny homes, three-story townhomes and various single-family homes — over the next four and a half years.

"This $23 million fund, which also provides approximately $365,000 for our neighboring community of Marne, will not only provide us with the capital to create this massive housing project but will bless us with the ability to continue to expand housing and essential commercial development in our community for generations to come, serving as a catalyst for growth and prosperity in our community," Bateman said.

While the impact will be felt for generations, Bateman noted the ability to have that profound of an impact on the community doesn't come around that often.

"We often talk about this remarkable gift of the Lakin Foundation as a once-in-a-lifetime opportunity, but really it's an opportunity that doesn't even come around once every lifetime," Bateman said.