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$200,000 in state and local funding to revive downtown Algona building

News

August 28th, 2025 by Ric Hanson

(Radio Iowa) – A local business owner with plans to renovate a 77-year-old building in downtown Algona is getting a $100,000 state grant for the project, along with $100,000 in matching funds from the City of Algona. Luke Arrowood already uses the basement of the former State Hotel Building for his “Active Aging” business. “We needed to do something with the building before it was too late,” Arrowood said.

Photo of former State Hotel in Algona that’s undergoing renovation. (City of Algona photo)

Arrowood’s plan is to create retail space in the front of the building for West River Meats, which currently sells beef, pork and beef tallow from a location in Rutland. A studio apartment will be in the back. “Algona’s first A.D.A. compliant apartment for downtown living,” Arrowood said. A wall in the middle of the building will be opened, to create activity space. “My goal is to have it more geared toward kids and more like obstacle-like course things,” Arrowood said. “The main level will be more functional fitness, the basement is more just like a commercial like gym.”

July of 2027 is the target date for completion of phase one of the project. The building’s exterior will be restored and other infrastructure will lay the groundwork for second floor apartments to be developed later.