City Council approves grant application for Surf District proposals
City officials celebrated what Mayor Nelson Crabb described as “one of the most important and positive decisions regarding the Surf District in the history of Clear Lake,” with their enthusiastic approval of an application to the Destination Iowa grant program Monday night.
The City Council met in special session Sept. 26 to formally adopt two resolutions dealing with submittal of an application for the Iowa Economic Development Authority Creative Placemaking Program. The City and North Iowa Cultural Center and Museum (NICCM), the 501c3 non-profit which operates the Surf Ballroom, are seeking 4.3 million for improvements to the Surf District.
City Administrator Scott Flory reviewed the application, which must be submitted to the State by Friday, with the Council. Flory said he believes the Surf District proposal laid out in the application, is a perfect fit for the Placemaking Grant criteria.
Chief among the qualifications for the grant, which would fund up to 40 percent of a project, is that both public and private investment must be demonstrated. That is being accomplished with a “bold initiative” which has the City as the lender to the non-profit 501c3 to provide the necessary capital to build and own a 45-room boutique hotel. The nonprofit would then contract with a third party manager to operate the hotel.
“The Oaks” would be reminiscent of the former hotel by the same name which stood on the site of the Hilltop Motel from 1893 to 1922. The Hilltop Motel has already been acquired for the potential project.
Flory noted the City will be able to utilize tax-exempt interest rates which will help the hotel be more feasible and sustainable.
Due to the City’s excellent financial status, the project would not affect Clear Lake’s bonding capacity at all, he added. The City would issue bonds for the overall hotel project in the amount of $10 million to fund construction, furnishing and equipping the hotel, as well as the City costs associated with legal and financial work.
With the hotel representing private investment in the area, not eligible for any grant funding, State grant money is eyed for various aspects of the overall Surf District project, including a new “Enhanced Music Enrichment Center,” Buddy Holly Place Streetscape Enhance-
ments and gateway features.
A waterfront component of the plan is considered very significant. Although the original Surf Ballroom was built on the lakeshore with large windows facing the lake, a rooftop garden and boardwalks, the current ballroom across the street from the original site has no view of the lake.
The new Surf District plan would use the yard of the Fox home across from the ballroom which the Surf already owns, and expand it by acquiring a residential property next door.
“This plan and the associated budget envision using the Fox House yard for access. The promenade and pavilion would contain public art related to the musical heritage of the Surf District. A city-owned and maintained floating dock with boat slips would connect to the Fox House property and the promenade. The dock would provide quick pick up and drop off for boaters and have temporary mooring available. Boaters can park in one of the short-term boat slips and enjoy the lake.”
The dock may also become a Lady of the Lake excursion stop, officials noted.
A new Music Enrichment Center (MEC) for the Surf is also proposed immediately west of the ballroom, replacing smaller buildings east of the ballrooms which are currently used It would provide expanded space for ballroom activities with a rooftop deck, concessions, meeting/conference rooms, offices, retail space and storage.
Other components of the plan include a Surf District Lighthouse Visitor Center at the site of the current Surf-owned restaurant known as the Legacy Grill. The lighthouse would be a nod to the A&W Light House Drive Inn which was located in the Surf’s parking area in the 1960s. A new lighthouse would hold a welcome center, exhibit space, restrooms, and possible food service and small theater.
The City is hopeful mixed use development would also take place in the area where under-used and somewhat blighted properties exist. Commercial business on the street level with housing above is proposed, similar to what already exists in the 200 block of Main Avenue.
“This is a really bold initiative to leverage our two greatest assets” said Flory, pointing to the Surf Ballroom and the lake itself.
The total cost of projects identified in the City and NICCM application to the State (gateway streetscape, waterfront development and MEC) is $10,924,000. A grant award of 40 percent would provide $4,370,000.
Funding for the Destination Iowa Grant Program comes from the American Rescue Plan Act. Governor Kim Reynolds set aside $100 million to support new tourist attractions and enhance existing sites; $20 million was originally designated for Placemaking Grant.
Flory said he expects two or three proposals to be funded, so the process will be very competitive. He noted Iowa Economic Development Director Debi Durham will make the awards following a single round of applications scored by an appointed committee. That scoring will be based on economic impact, promoting a sense of place and diversity in funding sources.
“In talking with Debi Durham early on, she described the Placemaking Grant as something you couldn’t duplicate somewhere else,” said Flory. “There is only one community that has Clear Lake and only one community with the Surf Ballroom.”
Flory said he anticipates a decision about the grants to be made by the end of the year.
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