The council voted Feb. 10 to buy the building for $10,117,066 from 3 & 1 Properties, of Fort Dodge, with plans to lease it to its original developer, M and M LLC, of Ankeny.

Monday’s borrowing completed the financing for the purchase. The city had money from a previous tax increment financing bond issue to make up the difference between the purchase price and the $9.5 million borrowed Monday.

The city’s plan is to use rent revenue received from M and M LLC to pay off the debt.

City Manager David Fierke has said that rent payments, other payments from M and M, sales tax revenue generated at Corridor Plaza and tax increment financing will be used to pay the debt. Property taxpayers would have to pay off the debt only if all of those other sources of money did not materialize, he said.

But on Monday, Mike McCarville, a former mayor and former leader of Webster County Development, challenged the notion that M and M will sign a lease.

“I don’t think anybody in their right mind is going to sign a lease,” he said.

He based that assumption on financial research he did on the monthly debt payments, property taxes, utilities, insurance cost, maintenance costs and employee wages for operating the pavilion.

He calculated the pavilion’s monthly expenses at $129,348 and its monthly revenue from renting out basketball and pickleball courts at $73,680.

Based on those figures, he estimated that the pavilion will lose $55,668 a month.

“This thing is going to go bankrupt quicker than a Trump casino,” he told the council.

He asked Fierke if there was a draft lease agreement with M and M LLC.

Fierke replied that there was not, but there would be one available for the March 24 council meeting or the April 14 council meeting.

McCarville said he is skeptical that anyone will sign a lease for the facility and suggested that the city government should just take charge of running it. He proposed a 14-member committee to oversee the site. It would include representatives of the city, Iowa Central Community College, Fort Dodge Community School District, St. Edmond Catholic School, Greater Fort Dodge Growth Alliance, Visit Fort Dodge and some local businesspeople.

“I don’t see how any reasonable person would sign a lease, so I think the city ought to recalibrate,” he said.

The City Council stepped in to buy the pavilion when it became clear that M and M LLC was struggling to get private financing for the project. The sports pavilion has been envisioned as a magnet that would draw people to Corridor Plaza, and the council indicated it did not want to see it fail.

The borrowing approved Monday is classified as a taxable general obligation annual appropriation urban renewal bond issue.

The money was borrowed from D.A. Davidson & Co., of Des Moines.

The firm offered interest rates ranging from 4.812 percent to 5.838 percent.

Councilwoman Jen Crimmins was absent from the otherwise unanimous vote to approve the bond.