Newell’s proposed waterpark may have a shot at six-figure grant funding — but getting there will require more planning, a clearer price tag and some careful decisions about how the project raises and spends its money.
The Newell City Council spent much of Wednesday evening working through those questions with waterpark committee members, City Attorney Gary Armstrong and City Auditor Tim McCartan.
The committee is pursuing a beach-style waterpark on the site of Newell’s 70-year-old former swimming pool, which closed in 2023. The concept calls for a synthetic-lined swimming pond, a sand beach and inflatable attractions, with an estimated total cost of $500,000 to $600,000.
About $300,000 has already been raised, but committee members are exploring additional funding sources — including a potential state grant and the creation of an independent nonprofit.
Committee member Katie Lange said the committee wants to reduce its reliance on city staff when pursuing funding, while creating more opportunities to bring in outside support.
City council member Bill Henrich cited a letter the city received from the Robertson Foundation indicating the organization would need to be recognized by the Internal Revenue Service as a 501(c)(3) public charity to receive funding. The letter referenced $5,000, with the possibility of additional support that he said could reach six figures. That funding has not been awarded.
Armstrong and McCartan explained that the nonprofit would be independent of the city, with its own governing board, paperwork and financial responsibilities. The initial formation cost was estimated at about $1,000, with ongoing administrative and tax-filing requirements.
McCartan drew on his experience with Humboldt Friends of the Parks, an organization formed when that community built its aquatic center. He said it has continued supporting other local projects long after the original fundraising effort.
But establishing a nonprofit would not automatically free up the money Newell has already collected.
Officials discussed how the approximately $300,000 currently held by the city would need to be handled separately from future donations raised by a new organization. They also considered questions about donor expectations and whether contributions could be returned if the waterpark does not move forward.
McCartan cautioned that the city generally cannot transfer public funds to an independent charity simply to help it raise money. The city could, however, potentially use eligible funds already in its accounts toward a project or grant application, depending on the applicable requirements.
That distinction matters as Newell considers Iowa’s Community Attraction and Tourism, or CAT, grant program. The city could apply on the project’s behalf, but the application requires a defined project scope, current engineering or architectural cost estimates and commitments for at least 65% of the total estimated cost.
Before the city can submit a meaningful application, however, the committee needs to establish whether the proposed waterpark will fit at the old pool site on N. Fulton Street and how much the entire project will cost.
That starts with a detailed property survey. Committee members said it would need to map elevations, utilities and other site conditions, rather than simply identify property boundaries. The results would help determine whether the location is suitable and give the engineering firm the information needed to develop final plans.
Waterpark committee member Mike Johnson said those plans are essential to narrowing the project’s current cost range.
The pond itself is estimated at $200,000 to $300,000, depending on site work. The full project would also need to account for items such as inflatables, a bathhouse, fencing, lighting, turf and other amenities. The next phase of engineering is expected to cost between $18,000 and $25,000.
Council members want survey estimates before authorizing that next step. The committee hopes to return with additional information at the council’s Nov. 2 meeting.
Lange also discussed upcoming question-and-answer posts on the committee’s Facebook page and holding another public information meeting once a more detailed design is available, allowing residents to ask questions with a clearer understanding of what Newell could be getting.
The former swimming pool is in the process of being demolished. The area remains cordoned off with yellow caution tape.
