Coralville arena on hold for county support

DES MOINES - A year after making a pitch for $12 million in state money to boost its proposed $70 million arena and sports center, Coralville was directed Friday to first look closer to home for more financial support.

While offering words of encouragement to city officials, the Iowa Economic Development Authority Board deferred taking a final vote on the city's request - asking in part they reach out to Johnson County for at least a little financial help.

Coralville Mayor John Lundell said he isn't entirely surprised by the deferral, but added he is encouraged by the board's comments.

'I'm more optimistic than ever,” he said. 'They told us more than once that we're very close to approval.”

Board member Larry Den Herder said a final vote could come as soon as the authority's June 17 meeting.

'You have more work to do. You're getting closer,” Den Herder said to Coralville representatives at the meeting in Des Moines. 'If you can get the rest of this stuff together, we're more than likely prepared to move forward at the next meeting.”

Josh Schamberger, president of the Iowa City/Coralville Area Convention and Visitors Bureau, who has been involved with the project, said authority members mentioned in March they'd like to a level of county contribution, but it was originally believed the involvement of the Johnson County Society Historical Museum in the project would suffice.

Friday's meeting showed that financial support from the county might also be needed, Schamberger said.

'It wasn't anything that was part of the rules or application, but it's certainly become a priority,” he said. 'That really was the take-away from today and what's left to figure out.”

Coralville City Administrator Kelly Hayworth said a dollar amount hasn't been determined, but the city will soon draft a request to take to the county board.

Johnson County Supervisor Janelle Rettig said the full board must take vote on that request, but said she personally supports what she called a benefit for the county.

'This is a new twist on it ... While I'm surprised at this point that the county is now asked to be involved, I am completely supportive of the project. I hope we can make this work, I think it will be great for the people of Johnson County.”

Officials first presented the project to the state authority in late May 2015.

The city wants $12 million from the authority's state-funded Reinvestment District program, which allows new state sales taxes and excise taxes - which are sales tax collections at hotels and different from locally collected hotel/motel taxes - to be reinvested within approved districts.

If approved, those funds would go toward construction of a 6,216-seat, multiuse arena and the Iowa Fitness and Sports Performance Institute - projected to cost more than $69 million - at Iowa River Landing.

The state board last summer pledged Coralville about $9.5 million. But with Davenport - which received a pledge for $10.7 million - since backing out of the program, Coralville's request bumped back to $12 million.

While viewed by those involved as a boon for Johnson County, some to the north in Linn County have raised concerns over Coralville's arena plans and the competition it brings to the market. It could put pressure for bookings on the U.S. Cellular Center in Cedar Rapids.

In order to receive state funding, Coralville officials need to ensure the project opens debt-free.

Those state funds are tied to the arena project, but city officials have much larger goals for the 180-acre Iowa River Landing. All told, the area is poised to see a roughly $174 million investment.

Other projects include a $9 million retail building that also would provide a home for the Antique Car Museum.

Hayworth said fundraising efforts for the project continue to move along and, once state funds are granted, an effort seeking smaller donations is to begin.

'That's just as important to us as the larger contributions,” he said.