Downtown Des Moines water trails plan could generate $104M in tourism dollars in five years
Kim NorvellPlanners of the Greater Des Moines Water Trails project in downtown Des Moines expect to see a return on investment within the first five years, a new study released Wednesday shows.
The project's downtown piece, which includes an adventure park and whitewater rafting, is projected to generate $104.4 million in spending at local restaurants, hotels and stores in five years, according to an economic impact study conducted by Johnson Consulting. That piece will cost about $106 million to build.
"It definitely gives us confidence," said Kristi Knous, tri-chair of Capital Crossroads. "As our consultant said yesterday, 'the weather forecast is bright and sunny; plan the cookout.'"
The new data will be used to seek donations from individuals and businesses. It's information "that many of them would be seeking before they invest," Knous said.
►More:New look at $117 million plan for Des Moines' rivers and streams
The Greater Des Moines Water Trails plan will turn 150 miles of waterways in central Iowa into a recreational amenity. The entire plan will cost about $117 million.
The plan's centerpiece is a series of whitewater features that would replace three dangerous low-head dams along the Des Moines and Raccoon rivers and draw kayakers, paddlers and even surfers to the downtown waters. It also includes out-of-water activities like zip-lining and rock climbing.
The economic impact study focuses solely on the downtown piece since it represents about 91 percent of the project cost, said Gunnar Olson, communications manager with the Des Moines Area Metropolitan Planning Organization.
Johnson Consulting estimates it will attract about 158,000 visitors a year, resulting in:
- $104.4 million spent on local restaurants, hotels, stores and entertainment venues in five years. About $26 million in spending is expected annually after that.
- $8.4 million in new money made by employees who work at the businesses where visitors will spend their money in the first year.
- An estimated 151 new jobs in the first year due to growing business. By year five, that number could grow to 202 new jobs.
- $7.3 million in tax revenue in the first five years from additional sales tax, hotel/motel tax and excise taxes.
"The tourism potential with this project is just huge," said Greg Edwards, president and CEO of the Greater Des Moines Convention & Visitors Bureau. "All tourism studies tell you people want outdoor adventure."
The Greater Des Moines Water Trails plan also includes items to address water quality in central Iowa's rivers, such as encouraging cities to adopt stream buffer ordinances, finding dedicated state and federal funds for watershed improvements and lobbying for statewide policies for source water protection.
Jennifer Terry, executive director of the Iowa Environmental Council, said an "economic argument" is now being made for water recreation, which will likely result in changing the conversation about water quality.
The economic impact study "bolsters our assertion that there is a business case to be made for clean water. Now, we have a clear and compelling business case to invest in water quality," she said.
"These projects get people on the water and, in order to safely get people in the water, we must now improve the quality of the rivers," Terry said.
►More:Hubbell Realty makes major donation to $117 million plan for Des Moines' rivers and streams
Planners, led by the Great Outdoors Foundation, will launch a capital campaign in the next few months. Results of a fundraising feasibility study to see how much of the project can be paid for with private funds is expected soon. Planners hope to raise about one-third of the cost from donations, Olson said. The rest would be paid for with local, state and federal dollars.
The capital campaign is projected to take 18 months. Preliminary design should also start in the new year.
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