Surf District ‘reimagined’ in application for state grant funding

A design which “celebrates Clear Lake’s past just as much as it creates opportunity for the future” has been created for the community’s Surf District.

Monday night, City Finance Director Creighton Schmidt shared an overview of the Surf District vision which will be used in an application for Destination Iowa grant funding.  The signature project of the Surf District plan is a new “reimagined” Oaks Boutique Hotel.  The 45-room hotel would be constructed at the site of the current Hilltop Motel, which has already been acquired, according to Schmidt.  Although the hotel itself would not be eligible for any grant funding, it represents a very necessary level of private investment and development required to leverage State grant funding for various aspects of the overall project, such as a new “Enhanced Music Enrichment Center,” Buddy Holly Place Streetscape Enhancements and gateway features.

The Creative Placemaking Grant the City is seeking has a maximum award of up to 40 percent of the signature project, Schmidt noted.

According to City Administrator Scott Flory, the vision of the boutique hotel is that the City would be the lender to the non-profit 501c3 to provide the necessary capital to build and own the hotel.  The nonprofit would then contract with a third party manager to operate the hotel. 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.  

“Without the hotel as a signature project, the prospective grant application from the City does not leverage the kind of private investment that other projects will likely contain and our application would be viewed less competitively,” Flory stated. “There are a few examples in Iowa that are similar, Storm Lake would be the closest in population to Clear Lake; the others are Polk County, Coralville and Cedar Rapids. Clear Lake’s is a little different twist on those in that here the City could be the “lender: and the nonprofit the owner.  A similar model exists with the Park Inn Hotel (Mason City) being owned by a nonprofit.”

Aside from the hotel, other aspects of the Surf District’s updated design include acquisition of private property located directly across from the Surf Ballroom entrance.  The removal of a home on the site would provide for an unobstructed view and walkway to be created from the ballroom to the lake.  Schmidt told the Council the walkway would combine Clear Lake’s two greatest assets — a National Historic Landmark with the lake.  A park-like setting and public dock space would be created.

An Enhanced Music Enrichment Center (MEC) would provide expanded space for ballroom activities with a rooftop deck, concessions, meeting/conference rooms, offices, retail space and storage.

A Surf District Lighthouse Visitor Center is envisioned for 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.

“If the trend of marginal properties, that are beginning to show signs of blighting in the Surf District are to be reversed, it’s going to take some bold initiative by the City government to make that happen,” stated Flory. “This is highly unlikely to happen on its own; the margins are simply not attractive enough for a private party to undertake such a project. A boutique hotel in the Surf District can be a catalyst to synergies private interest elsewhere in the District and create a more positive environment and “place” surrounding the venerable Surf Ballroom.”

The City Council will meet in special session at 6 p.m., Monday, Sept. 26, to approve the final draft of its Destination Iowa Placemaking Grant application.

The application deadline is Sept. 30.