Coralville to use tax revenue, donations, school district funding to build new $54 million rec center

CORALVILLE — The opening of a new recreation center in Coralville is likely still years away, but efforts to fund the project are well underway. The city plans to use a mix of funds from a local-option sales tax, the Iowa City Community School District and a fundraising campaign.

The 109,700 square-foot space would include three gymnasiums, an elevated track, a spa and three pools: a competition pool with spectator seating, a leisure pool and a recreation and community lap pool.

A new recreation center, east of the existing facility in ST Morrison Park, is estimated to cost upward of $54 million. The plan is to keep the existing center open throughout construction of the new building. The older facility would then be demolished once construction is complete.

Recreation Director Sherri Proud, at a city council work session this week, said the schematic designs are about 60 percent complete.

Proud said the city should have a clearer idea of the final cost, based on what was in the master plan, by the beginning of March.

‘Where People Meet’ fundraising initiative planned

In November, more than 85 percent of Coralville voters approved a 1 percent local-option sales tax that will take effect July 1.

Under state law, 50 percent of local-option sales tax revenue must be put toward property tax relief. Coralville plans to use the other 50 percent to fund the rec center and other city initiatives.

City staff estimate the local-option sales tax revenue could provide up to $40 million for the project over the course of 20 years.

The city also plans to fundraise about $4 million for the project though a campaign called “Where People Meet.” A committee of residents is being assembled to lead the outreach efforts.

“We feel that wraps together what we're doing with the Coralville rec center and what we're trying to do with the civic campus plan and the renovation at heart. It really wraps together, as well, that people have been meeting and gathering in this part of Coralville for we figured out 59 years,” Proud said of the fundraiser name.

Donations for the project are being collected through a fund set up by the Community Foundation of Johnson County.

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Iowa City schools to provide up to $14 million for the project

The Iowa City Community School District plans to partner with Coralville on the new rec center by providing as much as $14 million for the project.

The current rec center pool was built 37 years ago as a partnership between the city and the school district, and the school district’s four swim programs use the rec center pool. The district also pays about one-third of the facility’s operating costs.

A shared use agreement would continue with a new rec center. Both entities plan to review a revised 28E agreement — a contract between government entities — in the coming months.

Construction manager at-risk process

To construct the rec center, the city plans to use a construction manager at risk (CMAR) process for the building. The construction manager at risk process became available as an option for public entities in 2022.

The process allows the city to enter a contract with a construction manager who will manage all subcontractors and other work, as well as work directly with the architect on the project. A construction manager at risk process is often used for projects with a long construction time and the need for several types of specialized work.

The city required prospective contractors to submit qualifications such as experience on similar projects, references and financial information. Companies are required to be able to carry bonding for an amount that’s one and a quarter times the estimated cost of the project.

Once the final contract is awarded, the construction company will be liable for any costs that exceed the agreed upon price of the project.

The city council plans to review the contractor recommendations at its next meeting Jan. 27.

Next opportunity for public input

The city is tentatively planning an open house before the city council meeting March 10 to allow the public an opportunity to review plans for the rec center.

Comments: megan.woolard@thegazette.com

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