Vandalia surprise doesn’t slow city

EFFINGHAM May 20, 2009 09:57 am

— Vandalia’s recent announcement it has joined forces with a developer to construct a nearly $300 million sports complex and entertainment facility will have no effect on Effingham’s decision to move forward with plans to build the proposed sports center.
“I’m not going to let any community dictate what we think is best for our community. It will take a lot of money to get this (Vandalia’s complex) together, and if I was to put what we were doing on hold, it might take years,” said Mayor John Lange after Tuesday’s Effingham City Council meeting.
In fact, the council moved forward Tuesday with its own sports complex by passing an agreement Tuesday evening in a split 3-2 vote for Holabird and Root to design the sports center with a six-lane swimming pool, three competition volleyball/basketball courts and supporting facilities.
The agreement states Holabird and Root will be paid an hourly rate up to a maximum of $750,000 with the possible addition of up to $30,000 in reimbursable expenses. The city also will hire a project manager to oversee the construction of the sports center.
The agreement was passed with little discussion with Lange and Commissioners Karen Flach and Larry Micenheimer voting “yes,” and Commissioners Alan Harris and Merv Gillenwater voting “no.”
“The only thing I can say is my position hasn’t changed. I would like for this community to have a sports complex. However, , I feel we can’t afford to build and operate one. I’m also not happy with the reduced facilities we appear to be going forward with. The citizens who are talking to me tell me they don’t want to pursue this at this time,” said Gillenwater after the meeting.
Vandalia announced plans for the construction of a 200-million-square-foot sports complex and entertainment facility that far exceeds anything Effingham ever planned for its proposed sports center.
Vandalia entered into a development agreement with Michigan-based Motown Technology and Sports Facility during Monday’s city council meeting. The complex will include a 9,000-seat arena, restaurants, sports courts, surf wave pool, day care, fitness area, family fun center, 400-seat IMAX theater, 300-room hotel and bicycle manufacturing operation.
Economic Development Consultant Hank Stephens doesn’t think Vandalia’s complex will affect Effingham’s because the two complexes have different goals for attracting sports tournaments.
“The scope of the project is enormous, and I don’t think they are talking about the same scope of things as we are doing. I still think we will find our niche in the smaller events like club volleyball, basketball and swimming,” he said.
Vandalia Economic Development Director JoAnn Givens said the city has been in negotiations with Motown since early January. Effingham was not considered for this project.
“This is something that will pull probably 55 percent of the market from out of state. We’re looking at pulling from cities as far away as Chicago, Indianapolis, St. Louis and Louisville,” she said.
The development agreement allows for Motown to receive up to $98.5 million in incentives based on future revenue from the project. Once the developer establishes a commitment of financing by October, Vandalia agrees to establish a 1 percent business district sales tax, special service area tax and rebate a portion of the city sales tax generated at the facility.
The city negotiated a 50 percent reduction in facility fees for Vandalia citizens, YMCA members and the local school district.
The project is estimated to be an investment of $300 million and to provide 900 full-time jobs, along with 2,000 construction jobs. Givens said construction could begin in spring 2010 and would take around three years.
Angie Faller can be reached at 217-347-7151 ext. 131 or angie.faller@effinghamdailynews.com.

Photos

Above is a drawing of the proposed sports complex and entertainment facility to be constructed in Vandalia by Michigan-based Motown Technology and Sports Facility.