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IV. EXAMPLE APPLICATION OF THE GRANT PROGRAM <br /> <br />Developer XYZ develops a hotel/conference center facility meeting the criteria established within <br />the H/CCD addendum to the C/RD Incentive Grant Program: <br />· Level I grant 300 rooms, 40,000 s.f. conference space with a 15,000 s.f. main ballroom <br /> $40 million investment (taxable value) <br /> 25% sales tax and 4% room tax combined grant <br /> <br />Year one <br /> <br /> $17,000,000 gross retail sales including $7,000,000 room revenues <br />- Subsequent years increase as business increases <br /> <br />Local room tax from facility= 5% of $7,000,000 = $350,000 <br />Estimated room tax based grant = 4°~ ors 7, 000, 000 = $280,000 <br /> <br />Local retail sales tax from facility: first 1 cent <br /> <br /> two ½ cents <br /> total retail sales tax generated <br /> <br />$17,000,000 ~ 1% <br />$170,000 <br />$17,000,000~1.16% <br />$197,200 <br />$367,200 <br /> <br />Estimated sales tax based grant = 25~ of $367,200 = $91,800 <br />Year one total room and sales tax based grant = $371,800 <br />(Subsequent years increase as business increases) <br />Five year total of grants to developer = $2,567,674 <br />First five years ad valorem, sales and room tax to local government = $4,614,813 <br />Second five years ad valorem, sales and room tax to local government = $8,724,925 <br /> <br />4 <br /> <br /> <br />