Coralville ice arena project makes the first cut for state funding

The list of eight Iowa communities vying for millions of dollars in state funding has been reduced to five.

Coralville's proposal for $12 million to help create a 7,000-seat arena with an attached sports performance center is on that list of projects still in the running for the Iowa Economic Development Authority's state-funded Reinvestment District program.

'We are very excited to get to the next step with this project,” Coralville City Administrator Kelly Hayworth said in an email. 'We have a long way to go but this is one more important step.”

Marion's $24 million project proposal was was less fortunate and was removed from the IEDA list. Marion city officials wanted to fund plans for a new downtown library, an expanded and rejuvenated central square park, as well as a new hotel and conference center and other projects.

Marion City Manager Lon Pluckhahn said he was disappointed by the news that Marion's proposal failed to receive enough points to advance. He added that plans for the overall project aren't dead in the water, but rather slowed down.

'The state funding would have made a big difference on the timing of the project,” he said. 'In our case, several of the projects are ones that we can still pursue independently, it just will take a little bit more time to get them off the ground.”

Nick Glew, director with Marion Economic Development Co., also acknowledged a disappointment over Marion's failure to reach 70 points.

'Obviously we're disappointed that they scored our projects the way that they did. We feel like they missed out in really identifying the true uniqueness of our project as a whole and really how transformative it would have been,” he said. 'We know that every community worked hard to put together strong applications across the state, but I guess we're still left scratching our heads about their standpoint.”

The IEDA Reinvestment District program allows for state hotel/motel and sales tax revenues to be 'reinvested” within approved districts,” according to the state's Economic Development Authority website. To receive the money, the city must create or use an existing Enterprise Zone or Urban Renewal Area. The city would look to work with a private developer to fund the project and secure additional funding.

Proposals are graded on a number of criteria, including uniqueness, economic impact, project feasibility, capital investment and funding leverage.

Projects receiving 70 points or more advanced to the next stage. Proposals by Grinnell, Mason City, Davenport and Sioux City are also moving forward while applications from Waukee and Cedar Falls failed to reach the 70-point mark.

IEDA spokesman Tina Hoffman said representatives with each city will make presentations on their proposals next month, with the IEDA Board considering provisional awards by the end of June. Chosen cities will have until March 2016 to submit their final applications with economic studies and solidified financial plans before the final funds are awarded.

Hoffman said it's possible the number of state funds available in this round will be around $41 million.

With the five remaining cities requesting $65.5 million in funding, IEDA officials will either narrow down the list of finalists further, or award lesser amounts to all proposals, she said.

'Obviously something is going to have to give there,” Hoffman said.

Josh Schamberger, president of the Iowa City/Coralville Area Convention and Visitors Bureau, said the Coralville's project, which has been in the planning process for years, would be a cultural and economic boon to the community.

'I think the application was very strong and I think the vision is sound. It's something that‘s been in Coralville's master plan since the late 90s,” he said. 'The project is certainly unique.”

That said, Schamberger added there still is a ways to go before funding is granted from the state.

'There's a lot of hills left to climb, but this is the most important first step, I think, for Coralville,” he said.