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Culver: ‘I bring good news’

Governor weighs in behind local casino

March 5, 2010
By LINDSEY MUTCHLER, Messenger staff writer

Move forward out of the recession by creating jobs.

This is the message Gov. Chet Culver conveyed as he discussed the proposed casino and the I-JOBS grant awarded to Webster County. The governor met with the Webster County Board of Supervisors and members of the public Thursday morning to put an accent on optimism.

"I bring a lot of good news this morning," Culver said. "Some that you know about - and some that you don't know about."

Residents may know that Culver's administration recently awarded Webster County a $1.9 million I-JOBS grant to remodel the Webster County Law Enforcement Center. Now the governor is also offering the county support for its proposed casino project during his Moving Iowa Forward tour.

"The Racing and Gaming Commission is meeting all day in Des Moines today," Culver said Thursday. "Because of that, today I have made it very clear to the commission that I believe all four counties that passed the (gambling) referendum should get the gaming licenses."

The nearly 30 observers in the supervisors room exploded into cheers upon hearing the news.

"Obviously, that includes Webster County and the city of Fort Dodge," Culver said. "I believe the people have spoken loudly and clearly, and these counties should be treated like the other counties that have passed a referendum."

Culver said the referendum was really about economic development and job creation, which, he said, Fort Dodge needs. He cited an unemployment rate that rose from 4 percent to 8 percent.

"You need good-paying jobs whether it's the casino or I-JOBS project we're helping you with," Culver said. "I'm very excited about what the future holds for you here locally."

The LEC project will bring construction jobs to the area when repairs begin in the basement, first and second floors of the Law Enforcement Center.

"Last year the board commissioned a study to assess, prioritize and recommend improvements to the law enforcement center to address safety, energy and maintenance fees," said John Haila, the project's architect, to Culver. "Once they completed it, the main challenge was determining how to pay for the identified projects. Shortly thereafter, you announced the I-JOBS program."

Out of the nearly $500 million dollars available, Webster County's LEC project was one of 1,500 across the state. The money will fund about half of the project's projected $4 million cost.

"The work includes maintaining county and city public safety through desperately needed renovation of the firing range downstairs and enhancing building security by installing new exterior door control systems and locks, reducing energy consumption by replacing 25-year-old-light fixtures attached to control systems, replacing severely deteriorated and leaking water and sewer piping, and addressing sorely needed maintenance on the outside of the building," Haila said.

Culver said that by investing in infrastructure improvements, like the LEC, local economies will be able to create more jobs in the future.

"With this 21st century law enforcement center, you will be making public safety a top priority," Culver said. "This is a short-term investment in a very important project that in the long term will allow you to create more jobs here because you'll have a more connected, more modern, better infrastructure."

"Again, I commend the local officials, architect, engineer and those who've been involved in the important I-JOBS project," Culver added. "You're taking a big step forward in flood preparedness and management because communication is key. To have the Law Enforcement Center up and running in the very near future will go a long way in allowing you to be more responsive, efficient and better connected in terms of dealing with public safety issues across the board, not just related to floods or tornadoes.

"So I do commend you for stepping up and making this decision," the governor said. "You have a lot of really good local projects, and I think you've made an excellent decision in moving forward on this one."

Contact Lindsey Mutchler at (515) 573-2141 or lindsey@messengernews.net

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Article Photos

-Messenger photo by Hans Madsen
Culver announced that he had recommended the state gaming commission approve all four gaming licenses which would include the application from Fort Dodge. The supervisor are, from left, Eddie Peterson, Phil Condon, Keith Dencklau and Bob Singer.

 
 
 
 

Fact Box

Supervisors will hold hearing on jail

By LINDSEY MUTCHLER, Messenger staff writer

Constructing a new jail in Webster County is back on the table.

During a meeting Thursday, the Webster County Board of Supervisors voted 3-0 to set a public hearing to use local option sales tax to fund the possible construction of a new jail.

Two weeks ago the supervisors informally decided to postpone constructing a new jail because there was not "overwhelming" public support to pay for the project with a combination of property tax debt levies and a general obligation bond.

For this reason, the board decided not to hold a special election.

"We determined we didn't want to spend money on a vote because we were thinking it was obvious people didn't want to spend that kind of money," Supervisor Eddie Peterson said. "I've never really heard much from people coming up and saying 'we need a jail' or 'we don't want to spend that kind of money.' I didn't really hear anything."

However, after a meeting with architect John Haila and Scott Stevenson with Ruan Securities, other financing options, as well as the size of the jail, were discussed.

"This is my crystal ball," Haila said. "I don't think you're ever going to find a better time to bid a project."

"Best of times to bid, but worst of times to pay," Supervisor Keith Dencklau said. "Where do we go from here?"

The option presented was to fund the project entirely from a half-cent local option sales tax backed by general obligation bonds.

Assuming the county's sales tax receipts total $700,000 - which is a conservative estimate since the county brought in $875,000 last year - it could fully fund the project.

"I thought it would be best to use a conservative view and use $700,000 to find what you can fund based on that," Stevenson said. "For a larger jail at $7.6 million, as well as matching (the I-JOBS) grant, the total comes to about $9.5 million. Debt service would be about $685,000, which is essentially a one-to-one ratio in terms of insurance, assuming you have $700,000 in revenue. Based on that assumption you could still fully fund the project through a G.O.-backed sales tax bond."

But perhaps the board would like to have some "built-back balance left over," Stevenson said, to offset additional operating costs or just to have.

"We could downsize the project and fund a new jail to the tune of $6 million, which would give a total of $8 million in terms of covering the grant for the LEC and a new jail," Stevenson said. "Debt service would be $570,000, leaving $130,000 on an annual basis to have in your budget, more or less, to do with what you want."

By using local option sales tax money, the board would not have to hold a special election since part of the money is designated for construction and maintenance of buildings.

However, public input would not be ignored since the board must hold a public hearing before moving forward, and if 10 percent of the population who voted in the last election signs a petition against the measure, then the project would have to be put to vote.

Stevenson said jails across the state are being paid for with sales tax revenues.

Supervisor Bob Singer suggested appointing a five-person commission to assess the condition of the third-floor jail, as well as the public's mood toward the project, and report back to the board within 90 days.

This proposal was dismissed by other members of the board since the project has been studied extensively.

"A hearing would give us input from the public so we can move this project forward," Dencklau said.

"Contractors are looking for work," Peterson said. "So bids will probably come in lower than expected; that's what we've seen with drainage districts."

"We should let the people come to us, and tell us what they want," Supervisor Phil Condon said.

The board agreed to educate the public about the condition of the LEC's third-floor jail and the plans to build a new jail before the hearing takes place.

Contact Lindsey Mutchler at (515) 573-2141 or lindsey@messengernews.net

 
 

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