CLEAR LAKE — The Clear Lake City Council has approved a development agreement supporting a major expansion of Gabrielson Clinic that city leaders say will bring new medical services, millions of dollars in private investment and dozens of new jobs to the community.
The council approved the agreement at its July 20, 2026 meeting following the required public hearing and amendment to the city’s Consolidated Urban Renewal Area Plan.
The project calls for CLSC Properties LLC, doing business as Gabrielson Clinic, to construct a same-day surgery center and expand the clinic’s existing medical facilities at 401 S. 17th St., also identified as 1601 Fourth Ave. S.
According to city documents, the expansion is expected to cost approximately $10 million and create an estimated 20 to 25 quality jobs while significantly expanding healthcare services available in Clear Lake and the surrounding region.
Under the agreement, the city will provide tax increment financing (TIF) assistance through rebates equal to 90 percent of the new property taxes generated by the expansion for up to five years. The total incentive is capped at $350,000, plus administrative costs not to exceed $10,000.
Unlike a traditional grant funded from existing city revenues, the incentive is based only on the additional property tax value created by the completed project. If the project does not increase the property’s taxable value as anticipated, the rebate would be reduced accordingly.
City officials said the development agreement is intended to encourage private investment while expanding healthcare options for residents.
The clinic plans to construct a same-day surgical center in addition to new clinical space that will allow for expanded medical services. Construction is expected to begin this summer, with completion anticipated in 2027.
The proposal had been under discussion for several weeks.
At its June 15 meeting, the City Council initiated the process to amend the city’s urban renewal plan to include the Gabrielson Clinic project, a requirement under Iowa law before approving tax increment financing assistance.
At its July 2 meeting, council members scheduled the required July 20 public hearing and prepared the formal development agreement with CLSC Properties.
Financial documents presented to the council estimated the city’s total commitment at no more than $350,000 in incremental property tax rebates, with legal and administrative costs capped at an additional $10,000. The project documentation also indicated the city anticipated issuing up to $520,000 in debt associated with the urban renewal amendment, subject to annual appropriation if necessary.
Supporters say the expansion represents a significant investment in Clear Lake’s healthcare infrastructure while helping residents gain greater access to outpatient surgical procedures without leaving the area.
If completed on schedule, the expanded Gabrielson Clinic is expected to begin serving patients in 2027.
(TOP IMAGE Gabrielson Clinic expansion, new surgery center in Clear Lake, Iowa via @Google.)