By Susan Stapleton, Des Moines Register
As Merle Hay Mall prepares to embark on a multi-phase transformation to become a modern mixed-use entertainment and sports destination, vendors in the Local Eats Food Court are discovering that their days as a food court vendor may be limited.
Four restaurants now call the area in the northwest corner of the mall home, and each will need to decide what to do once mall owners close the area to make way for a multi-use arena and volleyball facility with an estimated $41 million to $56 million budget.
The food court could close as soon as March, tenants and mall management said. The food court will be part of the volleyball league and training facility.
“We met with all of the food court tenants earlier this month to discuss the options for relocating throughout the mall — primarily near exterior mall entrances — similar to Five Guys and Auntie Anne’s locations near the main east entrance,” said Liz Holland, CEO of Abbell Associates, the Chicago-based company that owns Merle Hay Mall.
Construction on the arena and sports facilities is expected to begin in early 2026 and wrap up by mid- to late 2027. The standalone 3,500-seat arena replaces the former Younkers space, with a facility designed for ice sports for Drake University club hockey, youth and figure skating, indoor hockey, volleyball and even soccer for the Iowa Demon Hawks.
A full demolition of the old Younkers building is planned to make way for the arena that can accommodate concerts, tournaments and performances.
The Iowa Economic Development Authority approved a revised agreement in November 2025 that will allow the mall to receive $26.5 million in state sales and hotel tax rebates for the project. The city of Urbandale plans to use the money to finance bonds backing the construction.
Abbell Associates of Chicago will need to show it has secured the financing for the $41.7 million project by March 31.
The plans also call for a $27 million hotel, new retail space north of Kohl’s, estimated as a $17 million investment, and other improvements.
What happens to the Local Eats Food Court restaurants?
The food court closure has prompted several vendors to reassess their futures at the mall. Maid-Rite, Tamale’s Industry, Turkish Feast and Vietnam Café reside in the food court now.
For German Tejeda, who opened Tamale’s Industry in the food court in 2014, that means finding a new home for the restaurant that has struggled in 2025. Tejeda is preparing to take his business on the road.
After a difficult year — “the worst year that I have had,” he said — Tejeda is moving away from a food-court model that no longer delivers steady traffic and toward a food truck that can meet customers where they are.
Tejeda is aiming for a truck that reflects the quality of his tamales, not a bargain-basement rig, though he’s realistic about loan limits.
Timing is tight. Construction at the mall could start by March, and Tejeda has set that month as his personal deadline to transition out of the food court. Even if the mall offers more time, he says the numbers don’t make sense to stay. He’s skeptical of moving to a pricier renovated space inside the mall, where rent would likely jump far beyond his current rate.
The decision caps a year of headwinds. Tejeda says changing customer patterns and on-site alcohol at other venues have siphoned off diners — competition he can’t match in a food-court setting. Utilities alone run around $400 a month, pushing him to trim hours while he prepares to pivot. Still, he’s confident in the product and loyal following that have sustained Tamale’s Industry at farmers markets and events, and he’s targeting winter markets and local pop-ups to bridge the gap during the transition.
“My goal is by March,“ he said. “When you have a goal, then you really push to get it done.”
Other restaurants may move out
Turkish Feast opened in December 2025 and is evaluating a move off-site — potentially to a downtown Des Moines location with sit-down service.
A downtown space would not be “high scale,” partner Veysel Kadir Yilmaz said, but a dine-in restaurant that keeps the menu accessible. For Turkish Feast, the choice now is whether to invest in a new brick-and-mortar buildout or consider other formats, under a tight calendar driven by construction at Merle Hay Mall.
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