04
May
2004
Kudos to Davenport City Administrator Craig Malin for his eloquent and creative response (Issue 474, April 28-May 4, 2004) to my editorial regarding the newly renovated John O'Donnell Stadium (Issue 473, April 21-27, 2004). While Mr. Malin's pride and enthusiasm for the facility are to be applauded, his spin on its annual revenues is misleading.
Briefly, the $150,000 Malin cited over and above the $102,000 annual lease is the required payment to reimburse the city for issuing bonds to pay for the suites and skyboxes, for which Seventh Inning Stretch will enjoy 100 percent of the revenues. That figure is also accounted for as part of its overall investment in the project.
While the city is paying $6.5 million - 47 percent of the total project cost (a mere 3 percent shy of 50 percent, so hardly a bragging point) - taxpayers are still on the hook for the majority of the cost when you add in the state's grant of $1.2 million and Scott County's contribution of $400,000.
That said, did the community get a $13.8-million baseball stadium? Absolutely! But only time will tell if residents will sustain it with their discretionary dollars reserved for entertainment ... because if they don't, their tax dollars will have to. With concession prices at major-league prices, I wouldn't bat on it.
Pay Attention Time
Residents of Davenport and Bettendorf need to get in the game relative to city governance, several potential development projects on the horizon, and specific issues that involve our tax dollars.
The first red flag is the current discussion in Davenport to increase aldermanic terms from two to four years and reduce the council size from 10 aldermen to five. There is also some debate about disbanding the Levee Commission, which governs activity along the riverfront. The timing is reflective of a new riverfront-development plan in the works that could potentially meet with resistance from the Levee Commission.
The second red flag is the Isle of Capri's intention to develop both its casino properties with hotel, parking, and a convention center expansion in Bettendorf and the possible construction of a new hotel and parking along the riverfront where the old Dock restaurant is currently located.
The red flag is not that there are new development plans on the table. The devil's in the details, and those details are typically about what level of subsidy taxpayers have to shoulder and at what risk.
The Bettendorf project would require $8 million in taxpayer subsidies, with an additional $10 million over 10 years from the Scott County Regional Authority (SCRA). While the City of Bettendorf would own portions of this project, citizens should inquire which portions and what level of return they can expect on their investments.
In Davenport, a new riverfront hotel would potentially block the spectacular view of the lock-and-dam system located at the Arsenal Bridge, not to mention potentially limiting access to the riverfront from the bridge to LeClaire Park. In addition, will a new riverfront hotel partner with the Radisson across the street in providing room blocks that allow the RiverCenter to fully compete for meetings and conventions? Is there any incentive for a new riverfront hotel to help fill up the RiverCenter when the same property owners are planning to build their own convention center in Bettendorf? Is there room for two convention centers? Perhaps if the Blackhawk Hotel is re-energized. But is that part of the negotiations?
It's been impossible to get a straight answer from anyone regarding where Rhythm City Casino wants to build its new riverfront hotel. Hargreaves & Associates has done at least two studies that include this area around the old Dock restaurant: one for the joint Rock Island and Davenport River Vision study and one for the Museum of Art Foundation regarding Arts Walk. But neither study is clear as to where a hotel would go, or what size. What is clear is meetings are being held amongst many of the stakeholders. The citizens of Davenport should not have to suffer a repeat performance of the Mississippi Plaza financing package for any new proposed hotel. You may remember that the city council had less than one month to debate before the public and vote on a 20 year $2.9 million TIF in order to secure the leases for Ryan Company of McGladry and Lee Enterprises. Advocates of the give-away claimed they had been discussing this package with the council for as much as nine months. Well, it wasn't before the public for those nine months. Perhaps that's the impetus to marginalize the Levee Commission. Stay tuned for a roll-out that's been in the wings for months but may require fast action on the council's part.
The additional concern that appears to be under city leaders' radar is the loss of any economic multiplier enjoyed by Davenport's downtown when tourists visit the boat. A hotel at this location would have the effect of virtually isolating the casino, allowing it to provide everything necessary to keep visitors at its location. Visitors would have no reason to leave the property; all their needs would be met for eating, drinking, sleeping, generally being merry, and gambling. Perhaps an analysis of Bettendorf's property in these terms would be useful. What economic impact has occurred as a result of the casino, over and above the SCRA's obligation, and how has such impact been measured?
In addition, the plans being discussed for Davenport's casino include a new parking ramp for casino guests. Not only would this additional ramp further isolate visitors, any revenue from casino parking in the two new city-owned ramps currently projected would be lost.
Either we consider our riverfront an asset, a resource, and an amenity in and of itself, or we don't. We don't get to have it both ways. The new Figge Art Museum leveraged its image and location relative to the river. The River Music Experience by its name alone has its focus on the river. To then allow the very riverfront that faces them to be obstructed any more than it already is antithetical to all that we are trying to accomplish through River Renaissance!
Briefly, the $150,000 Malin cited over and above the $102,000 annual lease is the required payment to reimburse the city for issuing bonds to pay for the suites and skyboxes, for which Seventh Inning Stretch will enjoy 100 percent of the revenues. That figure is also accounted for as part of its overall investment in the project.
While the city is paying $6.5 million - 47 percent of the total project cost (a mere 3 percent shy of 50 percent, so hardly a bragging point) - taxpayers are still on the hook for the majority of the cost when you add in the state's grant of $1.2 million and Scott County's contribution of $400,000.
That said, did the community get a $13.8-million baseball stadium? Absolutely! But only time will tell if residents will sustain it with their discretionary dollars reserved for entertainment ... because if they don't, their tax dollars will have to. With concession prices at major-league prices, I wouldn't bat on it.
Pay Attention Time
Residents of Davenport and Bettendorf need to get in the game relative to city governance, several potential development projects on the horizon, and specific issues that involve our tax dollars.
The first red flag is the current discussion in Davenport to increase aldermanic terms from two to four years and reduce the council size from 10 aldermen to five. There is also some debate about disbanding the Levee Commission, which governs activity along the riverfront. The timing is reflective of a new riverfront-development plan in the works that could potentially meet with resistance from the Levee Commission.
The second red flag is the Isle of Capri's intention to develop both its casino properties with hotel, parking, and a convention center expansion in Bettendorf and the possible construction of a new hotel and parking along the riverfront where the old Dock restaurant is currently located.
The red flag is not that there are new development plans on the table. The devil's in the details, and those details are typically about what level of subsidy taxpayers have to shoulder and at what risk.
The Bettendorf project would require $8 million in taxpayer subsidies, with an additional $10 million over 10 years from the Scott County Regional Authority (SCRA). While the City of Bettendorf would own portions of this project, citizens should inquire which portions and what level of return they can expect on their investments.
In Davenport, a new riverfront hotel would potentially block the spectacular view of the lock-and-dam system located at the Arsenal Bridge, not to mention potentially limiting access to the riverfront from the bridge to LeClaire Park. In addition, will a new riverfront hotel partner with the Radisson across the street in providing room blocks that allow the RiverCenter to fully compete for meetings and conventions? Is there any incentive for a new riverfront hotel to help fill up the RiverCenter when the same property owners are planning to build their own convention center in Bettendorf? Is there room for two convention centers? Perhaps if the Blackhawk Hotel is re-energized. But is that part of the negotiations?
It's been impossible to get a straight answer from anyone regarding where Rhythm City Casino wants to build its new riverfront hotel. Hargreaves & Associates has done at least two studies that include this area around the old Dock restaurant: one for the joint Rock Island and Davenport River Vision study and one for the Museum of Art Foundation regarding Arts Walk. But neither study is clear as to where a hotel would go, or what size. What is clear is meetings are being held amongst many of the stakeholders. The citizens of Davenport should not have to suffer a repeat performance of the Mississippi Plaza financing package for any new proposed hotel. You may remember that the city council had less than one month to debate before the public and vote on a 20 year $2.9 million TIF in order to secure the leases for Ryan Company of McGladry and Lee Enterprises. Advocates of the give-away claimed they had been discussing this package with the council for as much as nine months. Well, it wasn't before the public for those nine months. Perhaps that's the impetus to marginalize the Levee Commission. Stay tuned for a roll-out that's been in the wings for months but may require fast action on the council's part.
The additional concern that appears to be under city leaders' radar is the loss of any economic multiplier enjoyed by Davenport's downtown when tourists visit the boat. A hotel at this location would have the effect of virtually isolating the casino, allowing it to provide everything necessary to keep visitors at its location. Visitors would have no reason to leave the property; all their needs would be met for eating, drinking, sleeping, generally being merry, and gambling. Perhaps an analysis of Bettendorf's property in these terms would be useful. What economic impact has occurred as a result of the casino, over and above the SCRA's obligation, and how has such impact been measured?
In addition, the plans being discussed for Davenport's casino include a new parking ramp for casino guests. Not only would this additional ramp further isolate visitors, any revenue from casino parking in the two new city-owned ramps currently projected would be lost.
Either we consider our riverfront an asset, a resource, and an amenity in and of itself, or we don't. We don't get to have it both ways. The new Figge Art Museum leveraged its image and location relative to the river. The River Music Experience by its name alone has its focus on the river. To then allow the very riverfront that faces them to be obstructed any more than it already is antithetical to all that we are trying to accomplish through River Renaissance!
