City Administrator Decker Ploehn

Bettendorf taxpayers to pay far more for sports complex streets, sewer and stormwater detention

Bettendorf taxpayers will pay far more for streets, sewers and stormwater detention than the $3.87 million stipulated in the contract with the Bettendorf sports complex developer.

In private 3-on-3 meetings with aldermen July 5, city officials outlined a summary of estimated infrastructure costs for the sports complex showing construction bids received so far are $844,000 above the cap set in the development agreement between the city and developer Douglas Kratz.

Bettendorf sports complex developers to get more than $7 million in upfront grants and loans; no plans to conduct 'due diligence' review of development

Even though Bettendorf will upfront more than $7 million in cash, grants and land acquisition to developers of a $45-million sports complex, city officials say they do not intend to conduct any detailed financial review of the project or project partners.

Asked via email if the city had in the past, or planned in the future, to conduct any due diligence review of the finances of developers involved in the project, City Administrator Decker Ploehn replied with a one-word answer: "No."

In past Tax Increment Financing (TIF) development deals, city officials have been unconcerned with developer finances because city tax rebates wouldn't occur unless the development was completed at the agreed upon investment by the developer.

If the project was not completed, city officials reasoned in the past, there would be no "incremental tax" to then rebate back to the developers.

However, the development package prepared by city officials and scheduled for a public hearing and approval May 2 by the city council, would provide $1.9 million in cash, a $4.9 million upfront grant, plus $600,000 to buy 10-acres from the developers when the building permits for the sport complex are issued this summer.

Emails indicate mayor, city administrator pushed TIF's for downtown apartments for past year

For more than a year, Bettendorf Mayor Bob Gallagher and City Administrator Decker Ploehn have been telling their economic development staff and developers they would support use of city tax incentives for projects involving downtown apartments.

In emails obtained by bettendorf.com through a Freedom of Information request, both Gallagher and Ploehn were focused on redevelopment of eight apartment buildings in the downtown known collectively as the Carling Apartments.

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