Around 100 people attended a forum on Macomb’s proposed economic development project that would be anchored by a sports and events complex.
“There is a lot of work yet to be done,” John Hansen, Managing Director of IRR Corporate and Public Finance, LLC, told TSPR after the forum.
IRR is the firm the city hired to be its financial advisors on the project.
Also after the forum, Mayor Mike Inman said he feels there is support for the project, but skepticism remains.
“I think I saw some people come here with a look when they left of, okay, I get it now. But I also know there are folks, and we understand that, that still believe they need to know some more information before they jump on the happy wagon here,” said Inman.
He said the city will keep striving to provide information as the process continues and that the city will “vet this opportunity to its fullest.” He said he’s prepared to move on to a different plan if this one proves to be unfeasible.
“But I think we still have some due diligence yet to do before we say yes or no,” Inman said.
‘Our hope is that all boats rise’
Hansen said the city has assembled a good team to evaluate the cost and benefits of such a project. He called the forum an “interim update to the public to explain things and strategies that we are evaluating.”
Hansen also told TSPR that IRR is still analyzing the project’s potential impact on the local economy and determining whether visitors will also spend money at the city’s already existing businesses.
“Our hope is that all boats rise with respect to this project and that there’s great benefit to businesses both existing within Macomb and new businesses to come to the area,” Hansen said.
He said they’re looking at a multi-layered approach to funding the project.
Revenue bonds would account for 70%-to-90% of the funding, with donations and grants also providing some money. Hansen said bond holders would be taking the risk, not the city.
The city also expects to generate revenue from a Tax Increment Finance District and through its newly created Business Development District.
Macomb needs to let the state know by June 1 that it intends to file for the STAR Bonds program. The state will inform the city later on whether it will be awarded the bonds.
The city and IRR both say there will be no property tax increases to pay for the project.
$15.5 million in annual direct spending possible
The city’s consultant on the project is The Sports Facilities Companies, which conducted a feasibility study that found the complex would make Macomb a regional sports tourism destination.
The city is still seeking a developer for the complex.
The city’s local partners for the project include the Macomb Park District, the McDonough County YMCA, the Macomb Area Economic Development Corporation, the Macomb Area Convention and Visitors Bureau, and McDonough District Hospital.
The project is expected to lose money during the first four years because such facilities take time to ramp up. Hansen said they start small and then grow to a stabilizing level.
A handout from the partners says that by year five, the project could generate $15.5 million in annual direct spending, more than 156,000 annual visitors, and approximately 24,000 hotel room nights.
The handout says the venue will attract non-local spending that benefits local restaurants, hotels, and retailers. In addition to the sports and events complex, the project could include a family entertainment center, an outdoor swimming pool, hotels, retailers, and restaurants.
The partners say comparable venues include Cedar Point Sports Center in Ohio, Hoover Met Complex in Alabama, and Emerald Acres in Illinois. The handout says each of those has produced $20-to-$90 million in annual economic impact and spurred significant ancillary development such as hotels and restaurants.
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