City of Johnston Sues Ignit Sports Over $3.6M Owed for Failed Sports Complex

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The City of Johnston, Iowa is suing Ignit Sports for $3.6 million over an unfulfilled development agreement. The city alleges that Ignit failed to meet key requirements such as providing construction cost estimates, final site plans, and schematics, as well as starting construction by the agreed upon deadline. The city is seeking to either take control of the project or have Ignit return the $3.6 million it received. Ignit has not yet responded to the lawsuit, which was filed on March 13.

Why it matters

This lawsuit highlights the challenges cities can face when partnering with private developers on major projects. The failure of the Ignit Sports Complex has left a vacant lot and cost the city millions, raising questions about oversight and accountability in public-private development deals.

The details

According to court filings, the Ignit Sports Complex in Johnston was supposed to be completed by now, but the land remains undeveloped. The city claims Ignit failed to meet several key requirements of the original development agreement, including providing cost estimates, final site plans, and schematics, as well as starting construction by the agreed upon deadline. The city is now seeking to either take control of the project or have Ignit return the $3.6 million it received.

• The lawsuit was filed by the City of Johnston on March 13, 2026.
• Ignit had 20 days from March 13 to respond to the lawsuit filings.
• Ignit operated a sports facility in Grimes until it suddenly closed without warning on February 10, 2026.

What’s next

If the court rules in favor of the City of Johnston, Ignit Sports would have to pay back the $3.6 million owed to the city.