AG 1998 10 19 - Laserfiche WebLink

Home Browse Search

ORAFT · Ail hotel/conference center development incentive grant benefits are designed to be linked directly to local room tax and local option sales tax revenues received by the City and County attributable directly to the development of a specific project. Failure of the project to provide accurate revenue information, or to actually forward payment of collected room tax and sales tax revenues to the appropriate agency, shall void any responsibility of the City and/or County to pay incentives to the developer under the terms of the H/CCD incentive grant agreement. · This incentive grant shall apply only to the room tax and to the first 1 cent and two ~ cent local option sales tax revenues. Revenue from any additional future local room tax, or local option sales tax, which may be adopted, shall not be considered as available or applicable for purposes of any hotel/conference center development incentive grant program. · The distribution of incentive grant payments shall coincide with the receipt of quarterly sales tax revenues from the State by the County. The timing of payments to the developer shall be quarterly within 30 days of receipt of funds from the State and verification documentation of project revenue performance by the developer. Distribution of the portion of the grant related to the local room tax shall follow the same timetable. · ALL HOTEL/CONFERENCE CENTER DEVELOPMENT INCENTIVE GR3L~TS WILL BE CONVEYED BY A FORMAL AGREEMENT BETWEEN THE DEVELOPER RECEIVING THE GRI%NT AND THE CITY AND/OR COUNTY, AS APPROPRIATE. THE CITY AND/OR COb/~TY, AS APPROPRIATE, SKALL PROVIDE FOR A PUBLIC HEARING PROCESS TO ALLOW FOR PUBLIC INPUT PRIOR TO THE FORMAL AUTHORIZATION OF ANY HOTEL/CONFERENCE DEVELOPMENT INCENTIVE GRANT AGREEMENT. IV. EXAMPLE APPLICATION OF THE GRANT PROGRAM Developer XYZ develops a hotel/conference center facility meeting the criteria established within the H/CCD addendum to the C/RD Incentive Grant Program: · Level I grant 300 rooms, 40,000 s.f. conference space with a 1S,000 s.f. main ballroom $40 million investment (taxable value) 25% sales tax and 4% room tax combined grant - $17,000,000 gross retail sales including $7,000,000 room revenues - Subsequent years increase as business increases Local room tax from facility = 5% of $7,000,000 = $350,000 Estimated room tax based grant = 4% of $ 7,000, 000 = $280,000 Local retail sales tax from facility: first 1 cent = $17,000,000 @ 1% = $170,000 two ~ cents = $17,000,000@1.16% = $197,200 total retail sales tax generated = $367,200 Estimated sales tax based grant= 25% of $367,200 = $91,800 Year one total room and sales tax based grant = $371,800 (Subsequent years increase as business increases) Five year total of grants to developer = $2,567,674 First five years ad valorem, sales and room tax to local government = $4,614,813 Second five years ad valorem, sales and room tax to local government = $8,724,925 Hiahland Creek Subdivision - Reouest to Extend ADDeal of Petition C98-06(S) Unt~] October 19. 1998 Mr. Clifton reported that the Attorney for the developer of Highland Creek Subdivision had requested an additional 30-day extension until the Board meeting on October 19. He recommended that the Board grant the extension, but advise the developer to be prepared to proceed with the requested appeal at that time if alternative solutions are not presented. Board members expressed general agreement with Mr. Clifton's recommendation. UPON MOTION of Commissioner Barnhart, seconded by Commissioner Niblock and unanimously carried, the Board granted the extension until October 19, 1998 for the appeal of Petition C98-06(S) for the Highland Creek Subdivision. Consideration of Lease Aareement between C~barrus County and the ~.i.F.E. Center for the New Facility to be Built Ad4acent to the Senior Center Mr. F. A. "Alex" Rankin, III, Co-Chair of the L.I.F.E. Center Capital Campaign, advised that negotiations continue regarding a lease that would allow construction of the new L.I.F.E. Center on County property adjacent to