PEOSTA, Iowa — Peosta City Council members this week approved a development agreement with the owners of Round 2.

The new family entertainment center, featuring a bowling alley, is slated to open the day before Thanksgiving at 8412 Peosta Commercial Court across from Fareway.

The project will receive tax-increment financing benefits and could garner up to $440,000 during the 15-year agreement. This financing method incentivizes property owners to improve or renovate their buildings by giving them back a portion of the increased property taxes they would have incurred as a result of the improvements.

Council members also approved a $50,000 forgivable loan for the new business.

“The council took a tour a couple weeks ago, and it looks fantastic,” said City Administrator Whitney Baethke. “It will be pretty huge for us. We don’t have a lot of entertainment out here.”

The 17,500-square-foot facility will feature 12 bowling lanes, an arcade, bar, dining area and outdoor patio.

Round 2 is being built by owners Dave and Tracie Pettera. Their previous business, Cascade Lanes & Lounge, and an attached Happy Joe’s Pizza suffered heavy damage in a fire in August 2019, and the couple landed on Peosta for their new enterprise.

Dave Pettera said the project cost more than likely will exceed $3 million. He hopes to have the bar, bowling alley and arcade open the night of Wednesday, Nov. 26, with the restaurant opening shortly after.

“This has been a long time coming since everything we’ve been through,” he said. “My wife and I are both interested in getting this open.”

Pettera said the bowling equipment is being installed, and they are working to finish the kitchen floors.

“We are on the downhill slope,” he said.

Council members this week also approved tax-increment-financing benefits for Spiegel Family Realty, which developed the infrastructure in Peosta’s Commercial Court area. The company will receive up to $200,000 until the five-year agreement ends.