Iowa Department of Natural Resources Conservation and Recreation Division For Immediate Release March 29, 2007 HONEY CREEK PROJECT WILL BE RE-BID DES MOINES - A first-of-its-kind resort project destined for Honey Creek State Park will be re-bid after all of the bids received last week were rejected due to cost. Only one bid was received for construction of a 108-room hotel-convention complex. Hanson Co. of Johnston bid $24,350,000 for that project which carried an engineer's estimate of $13,500,000. The bid was also rejected for not meeting a bid requirement of providing unit prices for the proposal. Also rejected was the low bid of $4,929,000 from Vieco Development and Construction of St. Joseph, Mo., for construction of 28 cabins that were estimated at $4,250,000. "We are going through with this project and are fully committed to seeing a resort complex constructed at Honey Creek," said Ken Herring, administrator of the Conservation and Recreation Division for the DNR. Herring said that anyone who has been involved in a bidding process knows that occasional surprises, both good and bad, are inevitable sometimes even in the same project which has been the case at Honey Creek. In December, the low bid for first phase of the project that included construction of an 18-hole golf course came in at just over $6 million, more than $700,000 less than the engineer's estimate. The low bid allowed for the addition of several conservation-friendly additions to the project such as expanding the native grass plantings in the rough areas of the golf course by 23 acres and installing a more efficient irrigation system that will reduce water usage by 20 percent. The DNR will now be working with its consulting engineers to review the project and re-bid it in the very near future, according to Arnie Sohn, Honey Creek project manager for the DNR. "We are totally committed to providing a first-rate resort complex that Iowans can be proud of, but we are also very aware that we need to be fiscally responsible in the development of this project,"said Sohn. Sohn said the DNR is already looking at a variety of options to reduce costs of the project and to attract more construction firms to participate in the next round of bidding. "We are going to notify a lot of likely prospective contractors about the upcoming bid process. We will also be casting a wider net, making sure that we are advertising the project to as many potential bidders as possible," Sohn said. Sohn said it is still possible to reach the goal of a Memorial Day 2008 opening because the initial land grading and extension of utilities such as electricity and water has already been completed. "Essentially, we are ready for construction to begin right away," said Sohn. The 108-room lodge, conference center, indoor aquatic center, 18-hole golf course and 28 family and group cabins are all components to the overall plans for the resort. In addition, the normal array of state park facilities will be provided: semi-enclosed picnic shelters, paved multi-purpose trails, hiking/nature trails, boat ramp, boat-docking facilities, and an upscale RV campground. These facilities will be located on an 850-acre tract of land on the north shore of Rathbun Lake. The existing Honey Creek State Park (an additional 850 acres) lies across the bay, and development plans include a pedestrian trail bridge to link the two parcels. The principle financing source for the project is $28 million in bond proceeds that will be paid off over a 30-year period with revenues generated by the resort. Rathbun Regional Water, Chariton Valley Electrical Cooperative and Iowa Telecom will contribute more than $2 million in utility systems. Appanoose and Monroe counties, Rathbun Lake Resort, Inc. and private contributors have provided more than $2 million in cash advances to be repaid from hotel/motel tax receipts. Additional information on the Honey Creek Resort State Park project can be found at http://www.iowadnr.com/parks/honeycreek/index.html For additional information, contact Arnie Sohn at 515-281-5814. -30- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - To unsubscribe from the IOWA-TOPICS list, send any message to: [log in to unmask] Check out our Listserv Lists support site for more information: http://www.sierraclub.org/lists/faq.asp To view the Sierra Club List Terms & Conditions, see: http://www.sierraclub.org/lists/terms.asp