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HomeMy WebLinkAboutA004 - Memo to Mayor and Council and Parks and Recreation Commission dated August 9, 2001 i Memo A City Manager's Office TO: Mayor and City Council Members Parks and Recreation Commission Members FROM: Steven L. Schainker, City Manager DATE: August 9, 2001 SUBJECT: Vision Iowa Grant Update On Wednesday, staff from the City and Iowa State University appeared in Des Moines before the Vision Iowa Board to present our "Connect Iowa" proposal for a$22 million grant request. Board members had a number of questions/concerns that are summarized below: • There was a question about the lack of documented support by the officials from the Des Moines Botanical Center and Iowa Arboretum for the Reiman Gardens component. • There was a concern expressed that the County Board of Supervisors had not contributed enough to the project. This concern is due to an apparent disagreement as to whether or not the Story County Conservation Board's commitment of "in-kind" support is the type of direct contribution they expect from a County. • There was a question as to what other federal or state grants were available for the Hallett's component, and had we explored these possibilities first. • There was a question on the level of private support that was being committed to our proposal and, specifically, how much of the private donations identified for the Reiman Gardens component was obtained from City of Ames residents. • There was a question asked about how the community would prioritize the components of our proposal. It is apparent that the Vision Iowa Board is concerned about the level of funding that is being requested in our proposal. Clearly, like the City Council, this Board is facing requests for funding that significantly exceed the amount of funds available. i t The Board seemed to believe that two of the three components of our "Connect Iowa" grant proposal fit more appropriately in the Community Attraction& Tourism (CAT)program rather than the Vision Iowa program for which we originally applied. It should be understood that, within the overall Vision Iowa program, there are two funding streams administered by the 13-member Board. The CAT program is budgeted at $12.8 million annually for each of the next three years. The Vision Iowa program received $180 million for a one-time granting period. Only $15 million remains in this program, and several other large projects are also vying for those dollars (Waterloo,Newton, Ottumwa, Clinton, etc.). It was my impression that they were not enamored with our Wellness/Aquatics Complex component. As a result of these factors, the Vision Iowa Board took the following actions: 1) Shifted our request from the Vision Iowa program to the CAT program. 2) Asked the City to prioritize the three components of our request. 3) Established a"fact-finding" sub-committee to meet with City staff to clarify the issues presented above and to report back to the full Board by the next meeting on September 12. I am sure you would like to know how much money will be made available for all three components of our proposal. While I do not know for certain what this total will be, my best prediction is that we should not expect to be offered more than $6 million for all three components. Given this total, it is crucial that we prioritize the components so that we can make the best use of the limited funding that could be offered us. It is apparent that there are supporters for each of the components of our proposal and, therefore, any prioritization of the components will upset one group of advocates. To make this task even more difficult, staff believes that each of these components is worthy of your support and would improve the quality of life for our citizens. To assist you in setting these priorities, I would offer the following comments. --It is my belief that even if all of the funds awarded by the Vision Iowa Board could be directed towards the Wellness/Aquatics Complex, the total amount would not be sufficient to garner enough support to pass a bond referendum for this component. The limited funds that we can expect to receive from the CAT process will have a more significant impact on the less expensive Reiman Garden and Hallett's Open Space components. --Time is a crucial factor for both the Reiman Gardens and Hallett's Open Space projects. Our purchase option with Hubbell expires on December 15, 2001. Furthermore, a companion purchase option between Hubbell and the new owner of the quarry expires in January, 2002, and there is no guarantee that this owner will be inclined to extend the option yet another time. Furthermore, having raised a significant portion of their project already, ISU is poised to begin construction on the Reiman Gardens expansion. Because all work completed prior to the approval of this state grant will not be eligible to meet the local match requirement, ISU does not want to lose this opportunity. They would prefer to move ahead as soon as possible. 2 --The Reiman Gardens and Hallett's components appear to have similar appeal in terms of a regional draw for tourism and educational benefits for the state. It is, therefore, difficult to choose between these two strong proposals. As a result of these three factors, I would recommend that the City Council prioritize the components of our grant proposal as follows: First Priority—Halletts Open Space Project &Reiman Gardens Conservatory Complex Second Priority - Wellness/Aquatics Complex This prioritization does not signal a lack of support for the Wellness/Aquatics Complex, but merely a realization that funding for this facility, from Vision Iowa, is not likely. In anticipation of this reality, I would suggest that we reconsider other strategies for accomplishing this crucial project. Issues to be addressed should include the components of the Complex, the phasing of these components, the possibility of partnering with other entities, and the identification of other funding sources. Towards this end, I would ask that the City Council and Parks and Recreation Commission agree to meet on August 2 1"at 7:00 p.m. in a joint meeting to consider a new strategy for the Wellness/Aquatics project. By prioritizing the three components of our grant proposal, it is hoped that we will increase our likelihood of receiving some level of funding from the Vision Iowa Board and expedite their final funding decision. Remember, in order to stay on schedule to satisfy our purchase contingencies for the Hallett's project,we should have a bond referendum scheduled for the November election date, with a two-month public education process prior to that date. It remains to be seen whether the above action by the City Council will lead to a decision by the Vision Iowa Board by this September deadline. If this can't be accomplished, then the City Council will have to decide in early September whether to seek authorization to issue bonds in the full amount of$6.5 million, pending a final decision of grant funding. \sls c: Teresa McLaughlin, Director of Reiman Gardens Warren Madden, Vice President for Business and Finance, ISU Ben Allen, Interim Vice President for External Affairs, ISU s �