The Marion County Board of Supervisors is set to further discuss a request from the City of Pella relating to a potential indoor recreation facility at their meeting Tuesday.
This follow up session will come two weeks after Pella Mayor Don DeWaard and City Administrator Mike Nardini made a request for a $10 million bond over 20 years from county funds and extension of the current Local Option Sales and Service Tax redistribution agreement to support the estimated $51.4 million project, which includes a new rec center and extension of University Street east toward 250th Place. DeWaard and Nardini made an extensive presentation to the Board of Supervisors at the June 13th meeting.
Click here for audio from the presentation and from public comments that followed.
The City of Pella is seeking to close the gap on overall funding for the project — approximately $15 million has been raised with private funds so far, and the Pella City Council is committing to $22 million from Pella’s funding — $17 million of which is coming from the 20-year Local Option Sales and Service tax approved by voters in 2022. DeWaard is seeking additional funding from Marion County, the State of Iowa, and U.S. Government as well — a gap of nearly $13 million. The Marion County Board of Supervisors has also been asked to continue a redistribution agreement with Pella that would see 8% of the county’s sales tax revenue come back to Pella. According to Board of Supervisors member Mark Raymie, the Tulip City is responsible for 60% of all tax revenue in the county via the property tax levy and sales tax generation.
Board of Supervisors Chair Kisha Jahner expressed concern at the first meeting about the land acquisition required to connect 240th to 250th Place via University Street. The City of Pella owns the land necessary for construction of the facility and has supportive property owners or the right of way already acquired for most of the land needed to the east — however, it does not have any access currently to the west of the Pella Sports Park and proposed construction zone for the indoor recreation facility. Jahner was also concerned with funding other major projects in the county and how the request could impact future proposals for assistance on projects of larger scale from other communities in Marion County and for overall tax levy flexibility.
At the first presentation, Nardini highlighted the potential economic impact of the project, which according to Ballard King & Associates, would be $5 million annually, and a construction projection made by Impact DataSource estimates nearly 700 jobs created during the building of the facility, and just under $100 million in total economic output.
Financial Advisor Michael Maloney with D.A. Davidson, who is contracted by the City of Pella, said on June 13th that “conservative” projections for the rec center project and support from Marion County would remain tax neutral and wouldn’t increase the levy rate, due in part to the economic impact generated and several housing developments coming online from expiring tax increment financing debt in the Pella community that will come onto the tax rolls in coming years.
According to the agenda, there is no action scheduled heading into the session. The Marion County Board of Supervisors meeting will be held at 9 a.m. Tuesday at their main room at 3014 East Main Street in Knoxville.