Council increases minimum assessment of proposed softball complex in Newton

Newton City Council on June 22 agreed with a developer’s request to raise the minimum assessment of the proposed indoor-outdoor softball complex from $25 million to $36 million. Years ago the city agreed to provide tax increment financing assistance to the developer, but the project has not yet broke ground.

Two public hearings were held in regard to the indoor-outdoor softball complex. The first public hearing amended the 2019 Sports Entertainment Urban Renewal Area while the second amended the development agreement between the city and The Circle Development, LLC to make changes to the minimum assessment.

Council member Stacy Simbro said although there is no infrastructure in place at the Sports Entertainment Urban Renewal Area, it will bring in taxable assets at some point. But it will take considerable time to get through it. He also noted the tax rebate does not exclude taxes to the county and school district.

Which is also a point council member Vicki Wade wanted to emphasize, too. The council action was related to a tax rebate and not a tax abatement. Wade asked city finance officer Lisa Frasier to explain the difference. A tax abatement, Frasier said, would mean the property would not pay any taxes at all.

“So if their value was $10 million and we abated that full value, their value — according to taxes — would be zero,” Frasier said.

Newton would not receive any debt service tax if that was the case, and neither would the school or the county. But since it is a tax rebate, the tax assessment is the same as it would be and the property taxes would have to be paid. The city can then rebate a portion of that back to the developer.

According to Frasier’s calculations, the property would generate about $93,000 in debt service tax to the city, allowing council to create more projects or lower the levy. Council member Joel Mills confirmed with Frasier that cities use these rebate incentives to remain competitive when attracting large projects.

Developers are committed to constructing a $60 million facility allowing for indoor and outdoor field space.

Frank Mulbrook, a Newton resident, thought the project was for city-owned ball fields and he argued such a project would increase taxes. It was explained by the mayor that this is a private project. Council member Randy Ervin went on to say it is not only Newton investing in the project but also the state.

“This will bring people not just from Iowa but from states — all 50 states — and even some foreign countries,” Ervin said, noting the softball fields the city has are not comparable to Project Fastpitch fields. “People don’t understand the scope in what we’re trying to do in Newton. We’re trying to make this a destination town.”

Project Fastpitch was announced in 2019. At the time, it was thought to be an estimated $32 million tournament-style facility. Shortly after, the pandemic hit and drove fundraising to a screeching halt. In that time, Ervin argued, the price tags have raised on everything, including the softball complex.

“I’m telling you right now, folks, this is a big event,” Ervin said. “And we either need to start getting into some of these big events or we as a town need to realize we don’t want to grow. And I’m not here to watch us die. So I, personally, support this … It will blow your mind away when you see the size and scope.”