The Des Moines City Council approved a $10 million guarantee on Monday to help build a convention hotel connected to the Iowa Events Center downtown.
The city’s bolstered commitment accommodates a restructured financing package that will replace a foreign investment program initially proposed for the project. Polk County approved nearly $30 million earlier this month as part of the revised stack of public and private backers approved by the Iowa Events Center Corp. board.
Des Moines originally committed $5 million as part of the anticipated EB-5 foreign investment program. The nonprofit board overseeing the hotel abandoned that course this month due to timing issues.
The new financing model upped the city’s commitment to $10 million partially because this type of guarantee is considered less risky, according to city officials.
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