Bettendorf taxpayers will pay far more for streets, sewers and stormwater detention than the $3.87 million stipulated in the contract with the Bettendorf sports complex developer.

In private 3-on-3 meetings with aldermen July 5, city officials outlined a summary of estimated infrastructure costs for the sports complex showing construction bids received so far are $844,000 above the cap set in the development agreement between the city and developer Douglas Kratz.

In a libel lawsuit filed last week, ex-Davenport City Administrator Craig Malin claims the Quad City Times published false and misleading statements to "run him out of town" because of "his leadership in expanding access to public information, which the Quad City Times openly opposed."

The lawsuit filed June 15 in Scott County District Court names Lee Enterprises, owner of the Quad City Times, in addition to the newspaper and reporters Barb Ickes and Brian Wellner.

More than 150 years of newspaper competition in the Quad Cities will draw to an end later this month with purchase of the Dispatch-Argus and its digital portal QCOnline.com by Lee Enterprises, Inc., owner of the Quad City Times.

The $7.15 million acquisition (including an adjustment for working capital) was announced today (6/19) and is expected to close by the end of the month.

CLICK HERE for observations on the newspaper sale by John Beydler, who recently retired from the Dispatch-Argus after a career of more than 40 years.

Iowa's leading anti-tax group – Iowans for Tax Relief – claims thousands of grassroots supporters but in reality the vast majority of its funds come from revenue – all untaxed – generated by multi-million dollar charitable endowments and private trusts established by the organization's founder, David M. Stanley.

Stanley, of Muscatine, died in August 2015, but his endowment funds and trusts continue to pour millions of dollars into the operation of Iowans for Tax Relief (ITR) and four other charitable organizations espousing a similar mantra of limited government and anti-tax messages, and funding like-minded conservative politicians for state and federal office.

The endowments underwrite more than a dozen management and staff positions in organizations pumping out a steady stream of propaganda on tax and government spending issues.

Upgrades to the jointly owned Davenport/Bettendorf sewage system over the past four years has led to "marked reductions" in untreated and partially treated sewage being dumped into the Mississippi River during flooding and after heavy rainfalls.

According to the annual report to the Iowa Department of Natural Resources (IDNR) filed April 1, the improvements to the sewage treatment plant and sewage collection systems in the two communities have "reduced sewer backups and overflows.

Lee Enterprises – owner of the Quad City Times – reported second quarter earnings Thursday (5/4) of $6.4 million, down 67 percent from the same period a year ago when a one-time insurance settlement added more than $13 million to the company's bottomline.

Net income for the three months ended March 26 was 11 cents per share compared with 36 cents per share for the same period a year ago.

Bettendorf Mayor Bob Gallagher – apparently fearing fellow city council members might reject millions in taxpayer funded incentives for a proposed sports complex – sent an email to friends and associates last week urging them to lobby the city council in support of the venture.

"I have learned that people who detract from projects organize and gather to be heard," Gallagher wrote in the email. "While those who trust their elected officials and support wonderful projects, usually don’t make it a point to be heard. That is human nature. I need you to please be heard on this one!"

Gallagher attached a copy of a "city incentive versus city benefits" memo which claims the $45-million sports complex would provide a $2.95 million "net benefit" to the city. However, the analysis failed to include an estimated $14 million in tax rebates the developers would receive under the 20-year Tax Increment Financing (TIF) deal.

Developers of the proposed Bettendorf sports complex would receive more than $14 million in property tax rebates over the 20-year life of the Tax Increment Financing (TIF) deal with the city. That's in addition to $7 million in upfront incentives from taxpayers contained in a development agreement on the fasttrack for approval by the city council Tuesday (5/2).

In a "talking points" memo given aldermen by City Administrator Decker Ploehn, the city claims the "net benefit" from the sports complex (if a 100-room hotel is built) would be $2.95 million. However, the "city incentives vs. city benefits" overview fails to include 20 years of "incremental taxes" which will be rebated back to the developers.

Without the TIF, those "incremental taxes" from the development would otherwise go to the city, the county and the Pleasant Valley school district.

Even though Bettendorf will upfront more than $7 million in cash, grants and land acquisition to developers of a $45-million sports complex, city officials say they do not intend to conduct any detailed financial review of the project or project partners.

Asked via email if the city had in the past, or planned in the future, to conduct any due diligence review of the finances of developers involved in the project, City Administrator Decker Ploehn replied with a one-word answer: "No."

In past Tax Increment Financing (TIF) development deals, city officials have been unconcerned with developer finances because city tax rebates wouldn't occur unless the development was completed at the agreed upon investment by the developer.

If the project was not completed, city officials reasoned in the past, there would be no "incremental tax" to then rebate back to the developers.

However, the development package prepared by city officials and scheduled for a public hearing and approval May 2 by the city council, would provide $1.9 million in cash, a $4.9 million upfront grant, plus $600,000 to buy 10-acres from the developers when the building permits for the sport complex are issued this summer.