Henry County officials are taking steps to address a recent state audit finding by establishing a formal 28E agreement with Main Street Mount Pleasant, creating a legal framework for future county support of the downtown revitalization organization.
The move follows an Iowa State Auditor’s report that questioned a $7,500 county contribution to Main Street Mount Pleasant, noting that public funds generally cannot be donated to private nonprofit organizations without proper legal authority or a contractual arrangement outlining services provided in return.
Henry County Attorney Becky Wilson says the new agreement is designed to ensure compliance going forward and clearly define the public benefit the county receives.
“A 28E agreement is an agreement between a public agency and a private nonprofit organization,” Wilson explained. “Since it’s tax dollars going to a private nonprofit organization, there needs to be an agreement in place indicating what the mutual advantage is, particularly what the county receives as a benefit from the donation of the funds.”
Wilson said the agreement will specifically identify economic development benefits provided by Main Street Mount Pleasant, including job development, tourism growth, financial advantages, and increased public investment within Henry County.
“We’re working right now to draft up the necessary agreements for those private nonprofits that do receive donations and assistance from the county so we’ll be in compliance going forward,” Wilson said.
Main Street Mount Pleasant Executive Director Lisa Oetken said the organization and county have worked together for more than two decades, and the new agreement simply formalizes an existing relationship.
Oetken noted that similar agreements are commonly used between local governments and nonprofit organizations throughout Iowa.
Economic development remains at the center of Main Street’s mission, according to Oetken, who says the organization’s work extends well beyond downtown beautification projects.
“Everything we do is economic development,” she said. “From historic preservation to strengthening buildings to business retention and recruitment, that’s what we do.”
Main Street Mount Pleasant operates under the nationally recognized Main Street program and works closely with the Iowa Economic Development Authority. Oetken said the organization assists local businesses, helps recruit new investment, supports property improvements, and creates events and attractions that bring visitors into the community.
“We work with businesses every day of the week to help strengthen their business and bring people downtown,” Oetken said. “We’re creating placemaking and opportunities for people to be exposed to our small businesses.”
She also pointed to long-term growth in downtown property values and commercial investment as evidence of the organization’s impact.
“We have seen an increase in assessed value of our buildings over the last 24 years,” Oetken said. “From sales tax to commercial property tax, it strengthens the county.”
The proposed 28E agreement would allow Henry County to continue supporting Main Street Mount Pleasant while clearly documenting the economic development services and public benefits provided in return for county funding.
County officials say the agreement addresses concerns raised in the audit and establishes a transparent process for future partnerships between Henry County and nonprofit organizations receiving public support.