Des Moines Considers $100 Million Event Center Hotel

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Proposed Iowa Events Center Hotel

Proposed Iowa Events Center Hotel

DES MOINES, Iowa- The Des Moines City Council was presented with a plan Monday morning for a $100 million Iowa Events Center Hotel. The 330 room full-service hotel is projected  to bring a $35 million impact in the first year and draw 3 million additional visitors. One-thousand jobs would be created during construction, and 330 permanent jobs to operate the hotel.

“The ripple effect of all the spending power that comes due to this hotel will be $1.2 billion dollars over 20 years,” said Assistant City Manager, Matt Anderson.

The project would be funded by $14 million in TIF grants from the city over 30 years, cash from Polk County, and loans borrowed against the operating revenue of the hotel. The hotel would be run as a non-profit, governed by a seven-member board of directors.

“Polk county and the City would appoint the seven member board,” said Anderson.  “Were recommending that this board  be a very technical board, a very experienced board, real estate, hotel operations, finance banking, and law.”   Anderson said the working board would be charged with managing a $100 million dollar asset.

The City Council will be asked to consider approving a terms of agreement for the project at Monday night’s Council meeting.

15 comments

  • tom smalley

    ………Last Night KCCI said Nothing About the $39 MILLION of the STATE MONIES………there spendng the GAS TAX before they Pass The Gas Tax ……Iowa’s economic development board on Friday approved $4.4 million for Clear Lake === ONLY $4.4 MILLION …….I got ya beat this is 10 times that…..SO WRONG …DO THE MATH …….HUH a 16 floor 450 room got $36 Million and a 10 floor 300 room gets $39 Million ……..seems Minnesota WINS and IOWA LOOSES …….All Iowans get is to come up with $39 Million …….yet the Gain goes to ONE COUNTY , POLK ……if the state put $39M in bank for 20 years it would be worth a Billion , they will take business away from downtown hotels now ………watch , Iowa is short on roads , BUT how much will be spent on this ?………….11 things to know about the $101 million convention hotel …….. who will own this? and it seems the State should not Hand out tax subsidies? IF WE CANT FIX ROADS we are BROKE , Right? http://dmreg.co/1AYp3XP

  • joe

    non profit huh?? well I am sure they will try another illegal tax to pay for it, and when they are found illegal and ordered to repay, we the taxpayer will have to foot the bill along with the penalties…. sound familiar?

  • Terry Johnson

    why do we have to subsidize this? Meanwhile we screw the working guy by injmcreasing our property tax by over 80% in the last 10 years. How about no compensation for our dirtbag city council.

  • joe

    The state gives them 39 million? I thought the state had to raise the gas tax because thy had no money,,, prairie meadows will send them money out of gaming profits? I thought PM was cutting back paying what they were supposed to because profits were down just a week ago… Hiring out of state companies to build the place, and out of state consultants?? I’m starting to think Iowa’s new motto should be, If we build it Taxpayers will pay for it….

    • do ur job

      Just like the state has little current technology infrastructure, thus the majority of the reason why you have to print then mail a paper application or bring it to the office in person.

  • RJ

    I guess I can’t do math very well. To come up with 3 million additional visitors, the hotel would have to fill every room every night 24-25 people to a room. Only a politician could come up with this number. Great looking building though. Hey, here’s an idea. Why not let the private sector build this. Maybe because it wouldn’t be profitable? Oh well, just let the taxpayers pick this one up-while the taxpayer pays for new roads, bridges, tunnels, whatever we can add.

    • joe

      Go to the url Tom Smalley posted, it is much more informative than this article. For instance it says the new hotel will bring in that many more guests in 20 years, as well as the local hotels not wanting to subsidize a hotel that will take business from them and a lot more different info….

  • TIESSA

    Iowa, and specifically Polk County are draining us. Before long we will be like Detroit…losing our homes because we can’t afford the property tax, and unable to afford to put food on the table for our families. Our government needs a drastic change, the form of government we have now needs replacing, it is not working for “we the people”. The rich get richer and the rest of us struggle to maintain and keep what we have worked our entire life for.

  • John Smith

    Well, I reckon they got that “non-profit” part right, any way.

    You know, I sincerely doubt if a hotel that size would ever justify the staff numbers they’re throwing around, even at minimum wage. Perhaps the City should consider the impact on the “for profit” hotels downtown, and concentrate on projects that DON’T need giant piles of government cash to be viable. These give-aways to real estate developers are getting expensive, especially since the tax-payers end up with ZERO equity in all of these “investments”.

  • Concerned Citizen

    Mauro(Polk) County is a joke. I can’t wait to get out. Between the City of Des Moines and Polk County, they mismanage everything. What am I getting out of all of the money they waste? Nothing.

  • Don

    can you imagine how bad things would already be, if that des moines-polk county unified government went through a number of years back? most ambitious money grab in the states history

    the cronies in the elite circle of that would have robbed us all blind

    those of you who are old enough to remember the prarie medows ‘heads they win. tails we lose’ scam 25 years ago understand exactly what this is all about – it took polk county getting into the casino business forever to bail it out. talk about slippery, slimy slope

  • vinnievincent

    Wells Fargo Arena got railroaded through, if you remember correctly. If it had gone to a county vote we’d still have two great theaters on the site. There were enough signatures to force the vote, but enough crooks in the Polk County legal system ensured those wouldn’t be allowed. Now they think they need a hotel? If some chain wants one, let them foot all of the bill. No more tax subsidies or breaks. When the Polk County and Des Moines government tards give businesses tax breaks the private citizen picks up the slack, and it needs to stop! The Polk County Board of Supervisors and Des Moines City Council are crooked, as crooked as can be. They all need to be voted out.

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