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Over 56 percent of tax rebates to sports complex developers would come from PV school taxpayers

on Sat, 01/29/2022 - 07:46   by news

Of the $14 million in tax rebates earmarked for developers of the bettplex sports complex expansion, more than 56 percent – nearly $8 million – are expected to come from the pocket of Pleasant Valley School District taxpayers.

That's because the Tax Increment Financing (TIF) planned by the City of Bettendorf for the northeast corner of Forest Grove and Middle Roads would allocated 75 percent of the "incremental" taxes from the development back to the developers Doug Kratz and Kevin Koellner over a 20-year period up to a maximum of $14 million.

When the city employs a TIF, all "incremental" property taxes (except those levied for debt service) are rebated back to the developers.

Those aren't just property taxes levied by the city, but by all taxing bodies within the TIF area, including those for the school district and county.

City officials plan more taxpayer subsidies for Bettendorf's hottest commercial corridor

on Fri, 01/21/2022 - 01:44   by news

Despite being the hottest commercial corridor in Bettendorf, city officials are planning to dole out nearly $20 million in taxpayer subsidies to developers looking to expand the "bettplex" sports complex at Forest Grove and Middle Roads.

In addition to tax rebates totaling $14 million, the city would give developers $5.8 million in outright grants and agree to pick up the tab for all infrastructure improvements in the area at an estimated cost of $25 million.

In just the next two years, the agreement calls for the city to complete $5.3 million in public improvements including $1.5 million for a pedestrian bridge across Middle Road, $2 million for an extension of Forest Grove Road and a roundabout, $1 million for internal roads and trails in the development and $800,000 for storm water and sanitary sewer work.

And, unlike the first development agreement, the new deal would not require that developers share sales tax rebates with the city nor pay a $5 per night fee on hotel rooms planned as part of the expanded sport complex/urban renewal area on the northeast corner of Forest Grove and Middle Roads. (In the agreement released publicly 2/11, a clause to share sales tax rebates, if granted by the state, is included. The city would get a 45 percent cut of those rebates. And, a provision has been added to require hotels in the TIF area to charge a $5 per night room fee to be paid the city.)

Bettendorf sports complex developer wants to split future sales tax rebates rather than pay $556,000 due under development agreement with city

on Fri, 01/11/2019 - 21:43   by news

The developer of the Bettendorf sports complex wants the city to accept a portion of state sales tax rebates over a 10-year period, rather than pay $556,000 now owed under terms of the 2017 agreement.

The agreement with developer Doug Kratz set a cap of $3.87 million on city paid infrastructure for the so-called Bettplex at Middle Road and I-80. However, the cost of the streets, sewers, storm water detention and walkways exceeded that by $844,000.

Bettendorf sports complex infrastructure costs reach $4.6 million; city has yet to seek any reimbursement for $760,000 overrun of development agreement

on Wed, 12/12/2018 - 21:14   by news

Eight months after the Bettendorf sports complex opened for business, the city has yet to determine how much developers will contribute to the $760,000 cost overrun for streets, sewers and storm water detention for the facility.

The city has paid $4.63 million for the project's entry roads, interior walkways, sewer and storm water facilities to date. That's $760,000 more than the city agreed to pay under its development agreement with BettPlex developers Doug Kratz and Kevin Koellner.

Sports complex owner wants extra large sign to make sure motorists will see from interstate

on Tue, 02/06/2018 - 23:13   by news

The sports complex being built at Forest Grove and Middle Roads is asking the Bettendorf Board of Adjustment to approve an extra large sign so motorists won't miss it as they whiz by on Interstate 80.

The sports facility – initially known as the Bettplex and recently renamed TBK Bank Sports Complex – wants a sign nearly four times larger than the permitted 300 square feet.

The city's board of adjustment will consider the request for a variance to permit the 1,146 square foot sign at its Thursday (2/8) meeting.

Bettendorf sports complex developers to get more than $7 million in upfront grants and loans; no plans to conduct 'due diligence' review of development

on Wed, 04/19/2017 - 20:37   by Editor

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.

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