State moves to provide $36 million to Des Moines convention hotel
Des Moines officials can expect up to a $36.4 million boost from the state for a planned convention hotel downtown.
The Iowa Economic Development Authority Board gave preliminary approval Friday to redirect future tax money to the $130 million hotel -- a move city officials said is necessary to bring the hotel to fruition.
City officials and business leaders have tried for the better part of a decade to bring the hotel to downtown. Once complete, it would connect to the Iowa Events Center, have 450 rooms and multiple conference rooms.
Des Moines convention hotel: 7 things to know
State financing for the projects is not yet final, however. The authority board cautioned that final numbers could change, but for now city officials can use the state's promise when working on the hotel's budget.
The board will not officially award the money until Des Moines officials comes back to the table with finalized plans later this year. The board also gave provisional approval of up to $10 million for Muscatine and up to $12 million for Waterloo for their own projects.
Des Moines Assistant City Manager Matt Anderson said he thinks the city would be ready to come back within the next six months. Before then, the city needs to figure how the remainder of the project will be paid for.
"At this point, we have a 30,000-foot view of the project...you've got a lot of work left to do," Anderson said in an interview.
When applying to the state, Des Moines officials indicated $79.3 million of the hotel cost would come from a combination of a mortgage, the developer and the hotel's brand. That leaves about a $49 million gap that Des Moines and Polk County need to fill before the hotel's cost is fully covered.
All three cities have to come back to the table with finalized plans by March 2015 before money is awarded. Representatives from all three expect to come back long before that deadline.
The state's promise is a boost for Des Moines, where city officials are looking to compete against Omaha, Kansas City and St. Louis for large events – all larger cities with more hotel rooms.
"We are losing events to surrounding states…over and over one of the reasons we are losing those events is because of the lack of an attached hotel," said Anderson.
Iowa Events Center General Manager Chris Connolly said an attached convention hotel is crucial for drawing in larger events because it is closer for attendees and event organizers.
Currently, Connolly said Des Moines doesn't have a hotel close enough to the events center to fit many organizers' needs. He said if a conference attendee wants to take a break for 20 minutes in between panels, "the way we're situated now, you can't make it to your hotel room and back in time."
"It's really that proximity," Connolly said. "We need it. We really, really need it."
A timeline from the city indicates Des Moines officials would like to see the open by March 2017.
The state money comes from the Iowa's new Reinvestment District program. Under the program, the state can permit cities to establish 25-acre zones from which they can redirect future tax money over a 20-year period to finance projects within that zone.
Earlier this year, 10 Iowa cities, including West Des Moines and Johnston, applied. Only three – Des Moines, Waterloo and Muscatine -- moved ahead, however.
Des Moines' proposed district includes the $130 million hotel at the northeast corner of 5th Avenue and Park Street that would connect to the Iowa Events Center.
The Des Moines district also includes plans for a $27.8 million Hy-Vee at 420 Court Ave., $16 million in renovations at the Randolph Hotel and $6.8 million in parking and streetscape improvements.
Reported by: Desmoinesregister.com
The Iowa Economic Development Authority Board gave preliminary approval Friday to redirect future tax money to the $130 million hotel -- a move city officials said is necessary to bring the hotel to fruition.
City officials and business leaders have tried for the better part of a decade to bring the hotel to downtown. Once complete, it would connect to the Iowa Events Center, have 450 rooms and multiple conference rooms.
Des Moines convention hotel: 7 things to know
State financing for the projects is not yet final, however. The authority board cautioned that final numbers could change, but for now city officials can use the state's promise when working on the hotel's budget.
The board will not officially award the money until Des Moines officials comes back to the table with finalized plans later this year. The board also gave provisional approval of up to $10 million for Muscatine and up to $12 million for Waterloo for their own projects.
Des Moines Assistant City Manager Matt Anderson said he thinks the city would be ready to come back within the next six months. Before then, the city needs to figure how the remainder of the project will be paid for.
"At this point, we have a 30,000-foot view of the project...you've got a lot of work left to do," Anderson said in an interview.
When applying to the state, Des Moines officials indicated $79.3 million of the hotel cost would come from a combination of a mortgage, the developer and the hotel's brand. That leaves about a $49 million gap that Des Moines and Polk County need to fill before the hotel's cost is fully covered.
All three cities have to come back to the table with finalized plans by March 2015 before money is awarded. Representatives from all three expect to come back long before that deadline.
The state's promise is a boost for Des Moines, where city officials are looking to compete against Omaha, Kansas City and St. Louis for large events – all larger cities with more hotel rooms.
"We are losing events to surrounding states…over and over one of the reasons we are losing those events is because of the lack of an attached hotel," said Anderson.
Iowa Events Center General Manager Chris Connolly said an attached convention hotel is crucial for drawing in larger events because it is closer for attendees and event organizers.
Currently, Connolly said Des Moines doesn't have a hotel close enough to the events center to fit many organizers' needs. He said if a conference attendee wants to take a break for 20 minutes in between panels, "the way we're situated now, you can't make it to your hotel room and back in time."
"It's really that proximity," Connolly said. "We need it. We really, really need it."
A timeline from the city indicates Des Moines officials would like to see the open by March 2017.
The state money comes from the Iowa's new Reinvestment District program. Under the program, the state can permit cities to establish 25-acre zones from which they can redirect future tax money over a 20-year period to finance projects within that zone.
Earlier this year, 10 Iowa cities, including West Des Moines and Johnston, applied. Only three – Des Moines, Waterloo and Muscatine -- moved ahead, however.
Des Moines' proposed district includes the $130 million hotel at the northeast corner of 5th Avenue and Park Street that would connect to the Iowa Events Center.
The Des Moines district also includes plans for a $27.8 million Hy-Vee at 420 Court Ave., $16 million in renovations at the Randolph Hotel and $6.8 million in parking and streetscape improvements.
Reported by: Desmoinesregister.com
