BettPlex

Scott County opposed to use of new tax incentives for hotel, retail and commercial service businesses in proposed urban renewal area

The agreement providing millions of dollars in tax rebates for expansion of the sports complex at Forest Grove and Middle Roads was released Friday afternoon (2/11), less than three days before the Bettendorf City Council holds a public hearing and votes on it.

The council has discussed the agreement in so-called "3-on-3 meetings" outside the public view for months, but has yet to talk publicly about the multi-million-dollar Tax Increment Finance (TIF) deal with developers Doug Kratz, Kevin Koellner and Ryan Hintze.

It is possible the city council could approve the deal without any members even expressing their views on the agreement.

The agenda for the council's committee-of-the-whole meeting at 5 p.m. Monday (2/14) includes a presentation by the city's Director of Economic Development Jeff Reiter. No public comments are allowed at those sessions.

The council is then expected to hold a public hearing and approve the development agreement at its 7 p.m. Feb. 15 meeting.

CLICK HERE to download the proposed development agreement.

Despite being the hottest commercial corridor in Bettendorf, city officials are planning to dole out nearly $20 million in taxpayer subsidies to developers looking to expand the "bettplex" sports complex at Forest Grove and Middle Roads.

In addition to tax rebates totaling $14 million, the city would give developers $5.8 million in outright grants and agree to pick up the tab for all infrastructure improvements in the area at an estimated cost of $25 million.

In just the next two years, the agreement calls for the city to complete $5.3 million in public improvements including $1.5 million for a pedestrian bridge across Middle Road, $2 million for an extension of Forest Grove Road and a roundabout, $1 million for internal roads and trails in the development and $800,000 for storm water and sanitary sewer work.

And, unlike the first development agreement, the new deal would not require that developers share sales tax rebates with the city nor pay a $5 per night fee on hotel rooms planned as part of the expanded sport complex/urban renewal area on the northeast corner of Forest Grove and Middle Roads. (In the agreement released publicly 2/11, a clause to share sales tax rebates, if granted by the state, is included. The city would get a 45 percent cut of those rebates. And, a provision has been added to require hotels in the TIF area to charge a $5 per night room fee to be paid the city.)

Bettplex developer Doug Kratz – signing emails "frustrated" and demanding city legal staff rather than his attorneys draft revisions for an amended development agreement – stands to get an additional $1 million subsidy from city taxpayers for his sports complex.

The amended development agreement – scheduled for consideration by the city council Tuesday (March 5) – increases the city's cap to pay for streets, sewers, sidewalks and storm water infrastructure at the sports complex from $3.78 million to $4.65 million.

Eight months after the Bettendorf sports complex opened for business, the city has yet to determine how much developers will contribute to the $760,000 cost overrun for streets, sewers and storm water detention for the facility.

The city has paid $4.63 million for the project's entry roads, interior walkways, sewer and storm water facilities to date. That's $760,000 more than the city agreed to pay under its development agreement with BettPlex developers Doug Kratz and Kevin Koellner.