The Pleasant Hill city council has approved proceeding with a sports complex. A petition has been filed with the city requesting a vote on the funding for the complex. The city council has set an election date of August 3, 2010 for this vote, open to all qualified voters living within the city limits of Pleasant Hill. Below are some facts about the proposed project. Feel free to contact city hall (262-9368), the mayor or members of the city council if you have additional questions.
- Location. The proposed sports complex is located at the northeast corner of SE 6th Ave. and NE 72nd Street. It consists of approximately 155 acres.
- Cost: The proposal to be voted upon is the issuance of “not to exceed” $9.5 million of General Obligation Urban Renewal bonds (commonly referred to as TIF) bonds. This amount will cover the costs of the land purchase, engineering services, and construction for the initial phase of the project. The actual total cost will not be known until construction bids are received.
- Amenities: This initial phase of the complex will contain 4 baseball fields, space for 5 soccer fields, parking, and one concession stand with restrooms. The site has land for future expansion as the need for more baseball diamonds and soccer fields increases and for other amenities the community may want. The plan for total build out can be viewed at city hall or on the city’s web site at www.ci.pleasant-hill.ia.us
- Ballot language: The language on the August 3rd ballot states:
Shall the City of Pleasant Hill, in Polk County, Iowa, issue its bonds in an amount not exceeding the amount of $9,500,000 for the purpose of paying the cost, to that extent, of the acquisition of real estate for and the development of phase one of a youth sports complex, including soccer fields, baseball diamonds, recreation trails and related facilities?
- Timeline: The city is working with the firm of Snyder and Associates to prepare the plans and specifications for the complex. The project would be bid in the spring of 2011. The construction period would occur from spring 2011 through the summer of 2012. The park could be opened in the fall of 2012, with league play on the baseball and soccer fields beginning in the spring of 2013.
- Funding: The proposal for the public to vote on is the issuance of bonds paid for by tax increment financing (TIF). This will not impact property taxes for residents and businesses in Pleasant Hill. If the voters approve the bond referendum, the city will pursue grant opportunities and fund raisers that could fund additional features in the complex.
- How TIF works: To fund a project such as the proposed sports complex, bonds are sold to have the cash necessary to pay the contractors, engineers and other expenses associated with construction. The bonds are paid off over a period of years. To make the annual payments on the bonds, the city collects tax dollars paid by recently constructed buildings within the city. These properties pay the same amount of taxes they would if the city did not use TIF. The difference is that all the tax money they pay goes to the city for the city to use to pay off the debt, rather then some of the tax dollars going to the county, school district and other taxing agencies. Because the city is able to use all those tax dollars the city is able to pay off the bonds faster then if TIF was not used, thus saving money on the interest that would be paid if the bonds took longer to pay off.
By using TIF for the financing of this project the city can fund the project without an increase in the tax levy rate. The city can rely on tax increment already in place so even without any new construction the TIF revenue is sufficient to pay off the bonds, and the bonds will be paid off over a shorter period of time. The city’s financial advisor did a comparison of the impact of issuing general obligation bonds (GO) repaid by an increase in the property tax levy, and the issuance of TIF bonds. The TIF bonds will not require any increase in the tax levy rate. The TIF bonds can be repaid with the money already generated by TIF, is not reliant upon any additional construction in the city and will not increase the amount of property valuation committed to TIF.
Related attachments:
Attachment
Presentation Sports and Recreation Complex Survey
Survey Results
