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Earthpark report stresses Riverside responsibilities
City must help project obtain $20 million Vision Iowa grant
Mary Zielinski
The Gazette
September 23, 2006
[Note: This material is copyright by The Gazette, and is reproduced here as a matter of "fair use" for non-commercial, educational purposes only. Any other use may require the prior approval of The Gazette.]
The report, with responses by Earthpark CEO David Oman to questions the Riverside City Council asked, stresses the city’s need to help obtain a $20 million Vision Iowa grant by offering the project money.
That is one funding source for the proposed rain forest. The other is a $25 million community match. The Riverside Casino & Golf Resort and its majority owner, the Kehl family, have pledged $12 million and have suggested that $8 million come from the nonprofit Washington County Riverboat Foundation over 10 years.
Earthpark has suggested that it receive one-half of the proceeds from a 7 percent hotel/motel tax for maintaining the facility. The tax is on the November ballot in Riverside.
However, a hotel or motel would have to be built to generate money. The casino’s hotel is exempt from a hotel/ motel tax as part of a negotiated agreement between the city and casino in April.
‘‘While there may be alternative strategies if certain financial assumptions are not met, others may result in a project that is not actionable at the Riverside location,’’ Oman wrote.
He also wrote that he expected the overwhelming portion of the tax to be paid by visitors. ‘‘With up to a million visitors coming to Earthpark each year, it is likely that Riverside would see the development of a variety of new motels,’’ he wrote.
And if the projected traffic does not come, city officials asked. ‘‘It is important for Earthpark to be an integral part of a solid public-private partnership that drives visitation,’’ Oman wrote, referring to the casino and ‘‘other future amenities that can help contribute to Earthpark’s bottom line. . .’’
Oman wrote that Washington County needs to be a partner in the Vision Iowa request and that the Washington County Economic Development Group was helping identify potential ways to tie in with Earthpark beyond education and tourism.
The economic development group’s executive director is Ed Raber, also a member of the Riverside casino’s foundation board.
Riverside and a site near Pella are finalists for the rain forest, which was pulled out of Coralville last year when that city and Earthpark could not reach a land deal.
Riverside Mayor Bill Poch said Oman told him Tuesday it may be October or November before a decision is made on where to locate. Earthpark’s directors are to meet Thursday in Grinnell.
Oman previously told The Gazette he expects some direction out of that meeting on where to locate.
Earthpark must pick a site and have funding in hand by the end of December or lose a $50 million federal grant.