NEWS & ANNOUNCEMENTS

Effingham Selects Site for Proposed Sports Center

Release Date: 10/24/07

The City of Effingham announced Wednesday afternoon the Effingham City Council has selected a site on the northeast side of the City for the proposed sports center.

After closely evaluating three sites in the City, the Effingham City Council agreed the site best suited for the construction of the proposed Effingham Community Sports Center is 22.37 acres of property located northeast of Evergreen Hollow Park and southeast of the YMCA facility.

The City currently has an option to purchase 17.37 acres of the proposed site from a land trust, and the City will finalize an option with the Helen Matthes Library in the near future for the additional five acres. The library had purchased the property as a potential site for a new library, but the library board, which is in support of the sports center project, has other opportunities for a library site that it has been researching for the past several months.

“After considering the possible locations for the sports center, the Effingham City Council believes this site is best for the sports center. Its visibility from the interstate, proximity from Evergreen Hollow Park, and location in the community made it the best choice for the project,” said Mayor John Lange.

The current plans for the approximately 90,000-square-foot facility include a studio-size hockey rink, a competitive pool, a recreation pool, and a multisports area, and the construction of the sports center building is expected to come with a price tag of $9.87 million. Other costs associated with the project include acquisition of land, infrastructure, parking and construction oversight, which are expected to bring the total cost of the project to $12.93 million.

According to City consultant for the project Hank Stephens, the City is in a unique position to fund this project without having to tap into funds generated through property tax or sales tax collected in the general fund. The project will be paid for with $5.5 million in Hotel/Motel tax funds over a 20-year period, with $4 million to be paid from the Tax Increment Finance Fund over a 10-year period, and with $3.5 million taken out of available TIF funds.

Other costs projected with the project include the funds to operate and maintain the facility, which according to project consultant Tom Hillgrove of Rink Management Services is estimated to run at a deficit of $137,000 each year.

As a result of the projected deficit, the Effingham County Community Foundation has agreed to create a $3 million endowment to cover the cost of the projected deficit.

“The Effingham County Community Foundation has set a goal to raise $3 million for the permanent endowment fund for the Effingham Community Sports Center. Income from this fund is designated to provide support for the ongoing operational expenses for the sports center,” said Joedy Hightower, executive director of the foundation. “The establishment of this endowment is a critical component of the project, as there is no intention to have any tax money used at any time for the operation or financing of this facility.”

The advance gift portion of the campaign has generated $1.6 million in pledges, according to Hightower.

“After asking fewer than 30 percent of our identified prospects, we are at 52 percent of the campaign goal,” said Hightower. “Over 50 individuals are currently engaged in the campaign to raise $3 million for the endowment fund, and the findings of a feasibility study indicated overwhelming support from the public for the project.”

Because of the direct benefit to residents and the potential economic impact of such a facility, City officials stand strongly behind the project and plan to continue to support the project as plans are developed.

“The Sports Center is a worthwhile project that will benefit hotels, restaurants, and retails stores, and the project will have a tremendous impact on the community as a tool for economic development,” said Lange.

Lange also pointed out this project is not intended to make money for the City, but rather to benefit the community.

“The City is not building the sports center just to generate revenue for the City. The City is building the sports center to generate revenue in community,” said the mayor. “The sports center will bring in regional visitors who will spend money in our restaurants, stores, and other businesses. The businesses will be the ones who gain the most from this project.”