AG 1998 11 16 - Laserfiche WebLink

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Exhibit 2B attributable directly to the development of a specific project. Failure o[ 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 ageement. This incentive grant shall apply only to the room tax and to the lb'st 1 cent and two ~4 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 fqnds frem 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 foltow the same timetable. ALL I-IOTEL/CONFERENCE CENTER DEVELOPMENT INCENTIVE GRANTS WILL BE CONVEYED BY A FORMAL AGREEMENT BETWEEN THE DEVELOPER · RECEIVING TI-IE GRANT AND TI{E CITY AND/OR.COUNTY, AS APPROPRIATE. ~ CITY AND/OR COUNTY, AS APPROPRIATE, SttALL PROVIDE FOR A PUBLIC I--~ARING PROCESS TO ALLOW FOR PUBLIC INPUT PRIOR TO FORMAL AUTHORIZATION OF ANY HOTEL/CONFERENCE DEVELOPMENT INCENTIVE GRANT AGREEMENT. IV. EXAMPLE APPLICATION OF TIlE 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 15,000 s.f. main ballroom $40 million investment (taxable value) 25% sales tax and 4% room tax combined grant Year one - $17,000,000 gross retail sales including $7,000,000 room revenues Subsequent years increase as business increases Local room tax from facility Estimated room tax based grant = 5% of $7,000,000 = $350,000 = 4% of $7,000,000 = $280,000 Local retail sales tax from facility: first 1 cent = $17,000,000 @ 1% = $170,000 two'V2 cents = S17,000,006 '~t1.16% = $ J. 97,200 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= $372,800 (Subsequent years increase as business increases)