The Sheldon City Council has had an operation study done to find out more about a number of issues including whether the area has the market support such a facility, according to Sheldon City Manager Scott Wynja.
He says a big part of the analysis was cost of operation.
He says the study tried to come up with ways the facility could be used. Wynja says sometimes it’s hard to imagine just what the facility could be used for besides the obvious, wedding receptions, and so forth.
Wynja tells us about the cost of building the proposed facility.
He tells us about some of the ways it could be funded.
Wynja says one of the main reasons TIF is being discussed is to keep from raising taxes for the proposed facility. He says they see the proposed facility as a development tool, and the facility itself doesn’t generate taxes or create a tax base, but . . .
Wynja says the town also stands to benefit through folks coming to town and staying in Sheldon’s hotels, eating at the restaurants, buying gas and other items in the convenience stores, and so forth.
Wynja says the estimates they received were basically a worst-case scenario, but those indicated that the facility would probably lose $100,000 per year. Experts say that facilities such as this are not meant to turn a profit, but to bring people to town. Nevertheless, expenses need to be covered. Wynja says the council has not talked about this angle very much yet, but he tells us a few ways this could be covered.
He says the city has also been trying for a $1.325 million Community Attraction and Tourism or “CAT” grant for the construction of the proposed facility, and they have been invited to the next step in the process to decide whether they get the grant.