The Bettendorf sports complex under construction at I-80 and Middle Road was awarded up to $2.5 million in state sales tax rebates recently (10/11) based on the developer's estimate more than $66 million in sales will be generated over the next 10 years by the project.
The application for the Enhance Iowa sales tax rebates included a 10-year projection the complex will generate a total of $7 million a year in sales from: concession stands ($1 million), bowling/laser tag/arcade games ($3 million), sports bar/restaurant ($800,000), outdoor Tiki bar ($600,000) and sporting good/clothing ($600,000). Even for the first six months of operation after the complex opens in mid-2018, a total of $3.5 million in sales are projected.
In the application, developer Douglas Kratz stated he is investing $5 million, borrowing $37 million from TBK Bank, SSB (where he's a board member), plus getting nearly $11 million in incentives from the city to complete the project.
The city has approved a 20-year tax increment (TIF) rebate for the complex which is to repay nearly $4.9 million in taxpayer-funded improvements at the site, including stormwater detention, sewers, streets and walkways.
As part of the development deal approved earlier this year, the city purchased 10-acres of land from Kratz for $600,000 and gave him a $1.4-million economic development grant.
The application to Enhance Iowa did not include a profit/loss statement which would show projected expenditures for payroll, debt service, utilities, maintenance, advertising/marketing, and other operating costs.
Somewhere between 16 to 22 salaried full-time employees and 135 to 182 hourly employees would be employed at the complex, according to the grant application.
CLICK HERE to view the BettPlex application for state sales tax rebates.
