Hotel and Waterpark Planned Near Racetrack

Newton, IA (April 4, 2006) - Although the Iowa Speedway is still several months away from its first race, it is already acting as a powerful magnet to attract other economic development in the area.

An announcement was made early this morning that Skjodt Thomas & Associates of Indianapolis, Ind., has entered into a purchase agreement with Metro East Corporation Park to acquire approximately 85 acres on the southwest corner of Interstate 80 exit 168. The site will include a 300-room hotel/waterpark and conference center, a national retailer and the development of 15 to 20 outlots for national franchised restaurants. Community Development Director Bryan Friedman said the first development is perhaps the most important.

"We want to ensure that the first project at that interchange sets a high-quality tone for all development in the area," Friedman said.

In discussions with the Newton Development Corporation, Ryan Thomas, operating partner in Skjodt Thomas, estimates that the total investment in the development will be $65 to $70 million. The majority of the business for the operation will come from tourists and visitors to the Iowa Speedway as well as visitors to the hotel/waterpark and conference center.

Newton Development Corporation Executive Director Kim Didier said the hotel developers hope to close the deal sometime this year, with completion expected in the fall of 2008. Didier said she was very pleased with the proposed development.

"With this proposal, Newton grows as a destination location not only for the state of Iowa but for the Midwest region and greater," Didier said. "This also moves Newton one step closer to having a diversified economy that provides its residents with the quality of life that makes Newton a preferred location to raise a family, start an entrepreneurial venture, locate and grow a business and visit!"

Newton's Planning and Zoning Commission has been working on development regulations and design standards for the racetrack area. A "prairie fire" theme is under discussion, which would mix exciting destinations into an attractive landscape, according to a NDC press release. Newton Mayor Chaz Allen is excited about the impact the development could have on the area's economy.

"We believe that this development perfectly complements the Iowa Speedway activities," Allen said. "Capturing dollars from tourists and travelers helps boost our economy, and if we have the local option tax, it will help offset property taxes as well."

Skjodt Thomas & Associates L.L.C. is owned by Paul Skjodt and Ryan Thomas of Indianapolis, Ind. Skjodt also owns the Indiana Ice of the United States Hockey League, and Thomas is the operating partner in the company.

Others show interest

In addition to the hotel/waterpark, others are showing interest in the Interstate 80's 168 interchange.

Newton's Zoning Board of Adjustment is slated to discuss a zoning variance request from Love's Country Stores in early April. The application for a variance to the sign regulations of the zoning ordinance is to allow a Love's travel plaza and two restaurants to have a total of 1,300 square feet of signage on one interstate sign. Didier said Love's has applied for permits to purchase approximately 10 acres of land on the southeast corner of the 168 interchange, with groundbreaking expected in mid to late spring.

Current zoning regulations allow a maximum of 390 square feet for a joint business sign. The application is also for a 400-square foot sign along East 44th Street South and six on-site directional signs.