Iowa Department of Natural Resources
Conservation and Recreation Division

For Immediate Release                                                    
June 28, 2007

IT’S A GO! CONTRACT FOR CONSTRUCTION OF LODGE AT HONEY CREEK DESTINATION 
PARK APPROVED

DES MOINES — Completion of the centerpiece portion of Iowa’s first 
destination state park is on schedule for the summer of 2008.

The announcement of the planned opening date follows action taken Thursday 
by the Natural Resources Commission to approve awarding a contract to Hansen 
Construction, Inc. of Johnston for $19.3 million to construct a resort 
complex at Honey Creek State Park in Appanoose County.

The Honey Creek Resort State Park will initially include a 105-room lodge, a 
convention center accommodating up to 300 people, restaurant, lounge, indoor 
aquatic center, 18-hole championship golf course, boat docking facilities 
and hiking and biking trails. The resort complex will be across the bay from 
the existing 850-acre state park on the shore of Lake Rathbun.

“This is another important step in turning a long-time dream into reality,” 
said Terry Montgomery, administrator for the Honey Creek Destination Park 
project.

Another portion of the destination park plan, the construction of 28 family 
cabins, will now be part as a later phase in the project. The commission 
rejected a low bid of $4,224,000 from Vieco Development and Construction, 
Inc. of St. Joseph, Mo. on Thursday.

Due to costs of the project exceeding initial estimates, Montgomery said 
additional funding is being pursued.

“The construction of cabins is still very much in our plans for the 
destination park, but at this point, we want to devote our energy and our 
resources to ensuring the lodge convention center, restaurant, aquatic 
center, golf course and marina are completed at a level of quality that 
Iowans can be proud of,” Montgomery said.

Montgomery told the commission on Thursday that several potential funding 
sources have been identified and will be vigorously pursued in the next 
couple of weeks.

“We recognize the importance of cabins to the long-term success of this 
project, both financially and in creating the best possible destination park 
for the citizens of Iowa,” said Liz Garst who chairs the Natural Resources 
Commission.

“For a project this important to Iowa, we need to find the best possible 
solution as quickly as possible,” said Garst.

Montgomery said construction for the project with the centerpiece lodge, 
restaurant and aquatic center should begin yet this summer. Construction of 
the golf course is already underway.

The resort complex has been designed to accommodate groups and families with 
a wide range of outdoor interests and experience. The project also 
highlights a strong conservation ethic with the lodge facilities designed to 
meet Leadership in Energy and Environment Design (LEED) certification 
standards and the golf course being built to meet Audubon Cooperative 
Sanctuary Program certification.

“Honey Creek Resort State Park is being designed as the ultimate outdoor 
recreation destination in Iowa. We believe this experience will be the 
springboard to a greater appreciation and lifelong participation in our 
natural resources, from wildlife watching, hiking and biking to fishing and 
hunting,” said Montgomery.

In addition to the mixture of family-oriented activities such as the golf 
course, trails and aquatic center, Montgomery said the destination park will 
showcase the expertise of DNR staff with educational opportunities to foster 
a greater understanding and admiration of Iowa’s natural resources.

Montgomery said the goal is to be able to open the family cabins in the fall 
of 2009 or early 2010. In the meantime, the DNR has recently constructed 
four cabins in the existing state park across the bay on Lake Rathbun where 
the resort complex is being developed. Future plans call for a pedestrian 
bridge to link the two parks.

The principal financing source for the project is $28 million in bond 
proceeds that will be paid over a 30-year period with revenues generated by 
the resort. Rathbun Regional Water, Chariton Valley Electrical Cooperative 
and Iowa Telecom are contributing more than $2 million in utility systems. 
Appanoose and Monroe counties, Rathbun Lake Resort, Inc. and private 
contributors have committed more than $2 million in cash some of which will 
be repaid from hotel/motel tax receipts.
For more information, contact Terry Montgomery at 515-402-7413.

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