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Coralville outlines plan to bridge costs for new recreation center, sets timetable for bids and pricing
Summary
Advisors and Parks staff told the Coralville City Council the city will use a short-term loan to cover early Rec Center costs, then issue two bonds of roughly $20 million each; architect review and CMaR pricing are expected within weeks, with a June CIP hearing also on the calendar.
Advisors and Parks and Recreation staff told the Coralville City Council on April 28 that the city plans a short-term loan to cover initial expenses for a new recreation center and later will issue two bonds of roughly $20 million each to finance construction.
Timothy Oswald of Piper Sandler said the city "will receive approximately 15.8% of the LOST revenues received in the County via the current formula," and noted "the City will collect 11 months of LOST in FY2027 because it is collected in arrears." Oswald described a financing approach that begins with a small loan agreement to cover architects, engineering and similar expenses before issuing the bonds.
The timeline for construction procurement and pricing could move quickly. Parks and Recreation Director Sherri Proud told the council that architect Neumann Monson will present plans to the project's core review team on Thursday. Proud said that after the Construction Manager at Risk agreement is awarded, "the CMaR will get its initial pricing data to the City within 30-45 days." Proud also presented the department's annual report to the council via PowerPoint during the session.
The council was also informed that a hearing on the annual capital improvement loan is scheduled for June 8; that date frames when some financing decisions may be finalized. The presentation did not include a formal council vote or final contract awards during the work session.
Next steps outlined by staff and the city's financial advisor include completing the core review, receiving initial CMaR pricing, and advancing the CIP loan process in early June. Specific bond sizes were described as "approximately $20 million each," and staff said the short-term loan would be used to cover pre-bond expenses such as architects and engineering costs.
