7 things to know about Des Moines' new convention hotel
A set amount from the state has yet to be determined, but Des Moines officials have asked for $36.5 million in financial backing from the Iowa Economic Development Authority.
Here are seven things to know about the convention hotel:
What would it include?
For the better part of a decade, city officials have tried to bring a convention "headquarters" hotel to downtown Des Moines. The hotel would connect to the Iowa Events Center.
The hotel would have 450 rooms and be 16 stories tall.
It would include ballrooms, meeting rooms, a full service restaurant and bar, a pool, exercise facility and skywalk connections.
How much would it cost?
About $130 million. To be exact, the city estimates the hotel would cost $128.4 million. A majority of that cost -- $88 million – would go toward construction of the hotel.
Where does that money come from?
A combination of state, city and county funding, as well as ownership from the developer and the hotel's brand company.
Des Moines is still waiting to hear from the state how much money it will receive. City officials have asked for about $36 million over 20-years. Those officials have also said Des Moines would need the full amount from the state to move ahead.
As for the developer, Mortenson is expected to kick in about $15 million in equity, according to the city's application to the Iowa Economic Development Authority. The brand company, would kick in another $1.5 million through an equity stake.
A mortgage would make up another $63 million.
How much the city and county will kick in has yet to be determined.
Where would the hotel be located?
At the northwest corner of 5th Avenue and Park Street in downtown Des Moines. A branch of the skywalk would connect the hotel to the Iowa Events Center.
Currently, that spot is occupied by a vacant office building. The city plans to tear down the building, which is only valued at $400, according to the Polk County Assessor's website.
Who is developing the hotel?
Mortenson Development. Based in Minneapolis, Mortenson has completed a number of projects in Iowa, including Des Moines' iconic skyscraper, 801 Grand.
Why does Des Moines need the hotel?
When speaking about the hotel, city officials and local business leaders have said a headquarters hotel would help Des Moines draw in larger conventions.
Chris Connolly, the general manger of the Iowa Events Center, said Des Moines is competing against Omaha, Kansas City and St. Louis for regional and national conventions.
The lack of a connecting hotel to the Iowa Events Center puts Des Moines at a disadvantage, he said.
The hotel that connects to Omaha's CenturyLink Convention Center, for example, has 600 rooms. That means Omaha has 2,704 hotel rooms within a mile of the convention center.
Des Moines, meanwhile, only has 1,957 rooms in a one-mile radius and no convention hotel.
When would it open?
City officials want the hotel will open in March 2017, according to a timeline provided in Des Moines' application for state funds.
Timelines for major projects tend to be fluid, however. Progress on the convention hotel could be delayed depending on weather, funding or a number of other issues.
Reported by: DesMoinesRegister.com
Here are seven things to know about the convention hotel:
What would it include?
For the better part of a decade, city officials have tried to bring a convention "headquarters" hotel to downtown Des Moines. The hotel would connect to the Iowa Events Center.
The hotel would have 450 rooms and be 16 stories tall.
It would include ballrooms, meeting rooms, a full service restaurant and bar, a pool, exercise facility and skywalk connections.
How much would it cost?
About $130 million. To be exact, the city estimates the hotel would cost $128.4 million. A majority of that cost -- $88 million – would go toward construction of the hotel.
Where does that money come from?
A combination of state, city and county funding, as well as ownership from the developer and the hotel's brand company.
Des Moines is still waiting to hear from the state how much money it will receive. City officials have asked for about $36 million over 20-years. Those officials have also said Des Moines would need the full amount from the state to move ahead.
As for the developer, Mortenson is expected to kick in about $15 million in equity, according to the city's application to the Iowa Economic Development Authority. The brand company, would kick in another $1.5 million through an equity stake.
A mortgage would make up another $63 million.
How much the city and county will kick in has yet to be determined.
Where would the hotel be located?
At the northwest corner of 5th Avenue and Park Street in downtown Des Moines. A branch of the skywalk would connect the hotel to the Iowa Events Center.
Currently, that spot is occupied by a vacant office building. The city plans to tear down the building, which is only valued at $400, according to the Polk County Assessor's website.
Who is developing the hotel?
Mortenson Development. Based in Minneapolis, Mortenson has completed a number of projects in Iowa, including Des Moines' iconic skyscraper, 801 Grand.
Why does Des Moines need the hotel?
When speaking about the hotel, city officials and local business leaders have said a headquarters hotel would help Des Moines draw in larger conventions.
Chris Connolly, the general manger of the Iowa Events Center, said Des Moines is competing against Omaha, Kansas City and St. Louis for regional and national conventions.
The lack of a connecting hotel to the Iowa Events Center puts Des Moines at a disadvantage, he said.
The hotel that connects to Omaha's CenturyLink Convention Center, for example, has 600 rooms. That means Omaha has 2,704 hotel rooms within a mile of the convention center.
Des Moines, meanwhile, only has 1,957 rooms in a one-mile radius and no convention hotel.
When would it open?
City officials want the hotel will open in March 2017, according to a timeline provided in Des Moines' application for state funds.
Timelines for major projects tend to be fluid, however. Progress on the convention hotel could be delayed depending on weather, funding or a number of other issues.
Reported by: DesMoinesRegister.com
