McDonald's Submits Building Permit for New Location in Jefferson, Iowa

City officials confirm the fast-food giant is eyeing a former funeral home site along Highway 4.

Mar. 15, 2026 at 3:34pm

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McDonald's has submitted a building permit application to construct a new restaurant in Jefferson, Iowa, on the site of the former Hastings Funeral Home. City Building Official Chad Stevens says the project is projected to cost around $3.2 million, with a tentative construction start date this summer. While the sale has not closed yet, city officials are optimistic the deal will go through, welcoming the new business to the community.

Why it matters

The arrival of a McDonald's in Jefferson, a community of around 4,200 people, represents a significant economic development for the city. It signals that the fast-food giant sees growth potential in the area and is willing to invest in a new location, which could drive increased foot traffic and tax revenue for the city.

The details

According to the building permit application, the proposed McDonald's would include a drive-thru area with 28 parking spaces, as well as two entrances and exits from East Reed Street on the north end of the property and from East Adams Street on the south end. City Administrator Scott Peterson says this will be a new experience for the community, as Jefferson has not previously been home to a McDonald's restaurant.

  • McDonald's submitted the building permit application in March 2026.
  • The project is tentatively scheduled to begin construction this summer.

The players

Chad Stevens

The Building Official for the city of Jefferson, Iowa.

Scott Peterson

The City Administrator for the city of Jefferson, Iowa.

McDonald's

The iconic fast-food restaurant chain that has submitted a building permit application to construct a new location in Jefferson, Iowa.

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What they’re saying

“And they haven't closed on the property yet. It was for about $3.2 million was the projected cost of the project. They do have a tentative construction date of starting this summer now. Some construction scheduling has kind of pushed that back. But no permit has been issued yet. We are fairly confident that this is going to go through, but it's never a for sure thing until you actually see equipment start moving in.”

— Chad Stevens, Building Official

“It's wonderful to see this. It has really been some big positive news that Jefferson, Iowa is getting a McDonald's. It's just kind of one of those things that maybe you thought wasn't going to happen and that it does go to bigger communities. But we do have this restaurant that wants to come to the community and we'll certainly welcome them with open arms.”

— Scott Peterson, City Administrator

What’s next

The city of Jefferson is awaiting the final sale of the former Hastings Funeral Home property to McDonald's, at which point the fast-food chain can begin the construction process for its new restaurant location.

The takeaway

The arrival of a McDonald's in the city of Jefferson represents a significant economic development for the community, signaling the fast-food giant's confidence in the area's growth potential. While not all small towns are able to attract such major national chains, Jefferson's officials are enthusiastic about welcoming the new business and the potential benefits it could bring to the local economy.