A three-story golf range, bar and restaurant, hotel, and more athletic fields will expand the TBK Bank Sports Complex in Bettendorf to double its size.
The about 75-acre development east of the current sports complex across from Middle Road and north of Forest Grove Drive is set to begin construction April 1.
The Bettendorf sports complex brings in thousands of visitors on the weekends for sports tournaments and leagues, and has drawn in retail shops and restaurants since it opened four years ago.
Now, the complex will add to its roster: new multi-use recreational fields for sports like baseball, softball, and soccer, a three-story golf entertainment facility with at least 60 hitting bays, a restaurant, bar, entertainment center, at least one new hotel with a minimum of 80 rooms, and additional retail and restaurants.
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According to Visit Quad Cities, the TBK Sports Complex attracted 1.5 million visitors in 2021.
Like in 2017, when the complex was first, the city and developer are proposed pursuing another multi-million-dollar economic development agreement to make it happen. The city council is expected to review and approve the resolution of the agreement Monday and a press conference is scheduled for Wednesday morning to announce the agreement.
When reached by phone, Kevin Koellner, one of the developers on the project, declined to comment until the press conference Wednesday.
This go around, the city of Bettendorf has committed at least $5.8 million in economic development grants, infrastructure improvements, and a 75% tax-increment-finance rebate for 20 years. The city expects the rebates to total $14 million over 20 years on at least $32 million of development, as called for by the agreement.
According to the agreement available on Tuesday’s city council agenda, the city and developers expect the recreational fields and golf entertainment center to be completed by Dec. 31, 2023 and a hotel by July 1, 2025.
Under the proposal, Bettendorf would give the developer $3 million in economic development grants, paid in two installations. The first, the city plans to pay Jan. 3, 2023, and the second once the developer completes the golf entertainment facility, as long as it’s completed by Sept. 1, 2024. That’s more than the city’s $1.9 million in grants it gave five years ago.
On top of that, the city will pay the developer $350,000 each year for eight years, starting July 2022 and lasting until July 1, 2029, totaling $2.8 million.
The sports complex is already part of a tax-increment-finance district, an economic development incentive tool that cities use to collect taxes on increases in land value as it adds development. Cities then earmark all or part of that increase in tax revenue for infrastructure projects in the area or in rebates for the developer to offset upfront costs.
In Bettendorf’s case, 75% of incremental taxes generated by the golf entertainment facility, fields, and entertainment area will be issued in the form of up to 40 semi-annual grants to the developer, which the city estimates to total $7 million. A strip of commercial retail, a hotel, and convenience store, has an identical agreement, which the city expects to carve out another $7 million in rebates from the TIF fund. That total is $14 million that the city expects to award the developer from taxes on increased land value over the 20-year agreement. But that isn’t a limit.
According to the agreement, the city and developer expect the new fields, golf facility, and commercial development to be valued at $32 million once completed.
Economic Development Director Jeff Reiter told the council members on Monday that the he expected the city to pay $10.9 million in incentives to developers, and total revenue to the city over 20 years would be $14.4 million, gaining the city $3.5 million over the 20 year agreement .
A letter by Scott County Board of Supervisors Chair Ken Beck said that the board supported the use of TIF for the plan to develop the athletic facilities and the three-story golf entertainment center, writing that “the continued development in this area should attract more sporting events and visitors to the Quad Cities area and help grow our tourism economy.”
But, Beck said the board didn’t support the use of TIF for developing hotel, retail, or commercial service businesses that “compete or overlap with other existing businesses for the same Quad Cities area markets.”
Beck wrote that the board noted the proposed rebates of TIF revenues generated by the development is “uncapped and open-ended as to the amount of revenue to be rebated. It is only limited by the 20-year maximum lifetime of the TIF.”
“The Board has always encouraged TIF rebates to be for the least amount and the shortest length of time necessary to make a project feasible,” Beck wrote in the letter.
Reiter thanked Beck for the comments and endorsement and wrote that: “in this instance, knowing the nature of this development, and its overall position as a ‘one-stop shop’ destination, makes it truly one of a kind with no other comparable model anywhere in the Midwest.”
Because some of the increase in taxes will be diverted from bodies like the county, Bettendorf sought the opinions of the Board of Supervisors and Pleasant Valley Schools. No communication between the city and school district was included in the agenda packet, but city staff made a presentation to the district at its board meeting Monday night.
The developer would pay a $5 per room per night fee to the city of Bettendorf. Any sales tax rebate awards from the state government will be split 55% to the developers and 45% to the city.
Also this summer, the city plans to spend about $11.4 million to redo the intersections on Forest Grove Drive and Middle Road to add three roundabouts and walking paths. The city is paying $5.5 million and a federal grant covers $5.9 million of the project. The city has already spent more than $1 million for utility burial.
According to the agreement, the city would complete construction projects on the entry and interior roadways and recreational trails, roundabouts and road-widening on Forest Grove Drive and Middle Road, sanitary and storm sewer, and erosion control, by Jan. 1 2024. The city also plans to build a pedestrian bridge over Middle Road to connect the two complexes by Jan. 1, 2025 — the city is pursuing a federal grant to off-set those costs.
The agreement also resolves to pursue building an Olympic-sized competition indoor swimming pool at the TBK Sports Complex.
“The City, developers and BettPlex will use their best efforts to pursue and secure federal, state, and/or third party funding to assist with the development and construction of the Pool,” the agreement reads.
For fiscal 2023, the city plans to issue a total of $19.7 million in general obligation bonds to pay for road improvements, capital improvement projects, and other items across the city.
Of that, the city plans to issue up to $7 million in debt for the I-80 economic development area. That includes $2.915 million in bonds for public roads and infrastructure at interest cost of 1.92% and $3,095 million for an economic development to private developers at 2.44% interest.