Johnston Ignit Sports Complex Developer Faces $3.8M Repayment Demand

City seeks reimbursement after developer defaults on agreement and fails to complete land sale

Published on Feb. 12, 2026

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The city of Johnston, Iowa is seeking over $3.8 million in reimbursements from Ignit Johnston LLC, the developer of a proposed youth sports complex, after the developer defaulted on its development agreement and failed to complete a required land sale by the February 1 deadline. The project has faced financial hurdles, including a foreclosure filing by Lincoln Savings Bank and lawsuits from two investors claiming the developer defaulted on promissory notes.

Why it matters

The city's actions demonstrate its commitment to recouping public funds invested in the project and adhering to the terms of the development agreement. The situation highlights the risks inherent in large-scale development projects and the potential for financial complications that can derail plans, even those initially approved by local government.

The details

In 2022, the Johnston City Council approved a development agreement with Ignit Johnston LLC for a 30-acre youth sports complex north of Interstate 80/35. However, the developer failed to complete the land sale by the February 1 deadline. The city is now seeking reimbursement of over $3.5 million in predevelopment grants and up to $300,000 in related costs. Ignit Johnston LLC has 30 days to repay the city, or face potential further legal action.

  • The Johnston City Council initially approved the development agreement with Ignit Johnston LLC in 2022, with initial plans for completion in spring 2023.
  • On December 1, the Johnston City Council found Ignit Johnston LLC in default and initiated remedies outlined in the development agreement.
  • Ignit Johnston LLC now has 30 days from February 1 to reimburse the city more than $3.5 million in predevelopment grants and up to $300,000 in related costs.

The players

Ignit Johnston LLC

The developer of the proposed youth sports complex that defaulted on its development agreement with the city of Johnston.

Lincoln Savings Bank

The bank that filed a foreclosure against Ignit Johnston LLC, alleging a mortgage default of more than $3.56 million as of October 23.

Johnston City Council

The local government body that initially approved the development agreement with Ignit Johnston LLC in 2022 and has now found the developer in default.

Chad O'Meara

The co-founder of Ignit Johnston LLC who stated the company continues to work with the city, lenders, creditors and investors on the best paths forward.

Josh Laraby

The city of Johnston's director of economic development, who noted the area is part of the Merle Hay Gateway Plan envisioned as an 'entrance to a vibrant retail and experience-based corridor.'

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.