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<br />
<br />Ail hotel/conference center development incentive grant benefits are
<br />designed to be linked directly to local room tax and local option sales
<br />tax revenues received by the City and County attributable directly to the
<br />development of a specific project. Failure of the project to provide
<br />accurate revenue information, or to actually forward payment of collected
<br />room tax and sales tax revenues to the appropriate agency, shall void any
<br />responsibility of the City and/or County to pay incentives to the
<br />developer under the terms of the H/CCD incentive grant agreement.
<br />This incentive grant shall apply only to the room tax and to the first 1
<br />cent and two ~ cent local option sales tax revenues. Revenue from any
<br />additional future local room tax, or local option sales tax, which may be
<br />adopted, shall not be considered as available or applicable for purposes
<br />of any hotel/conference center development incentive grant program.
<br />The distribution of incentive grant payments shall coincide with the
<br />receipt of quarterly sales tax revenues from the State by the County. The
<br />timing of payments to the developer shall be quarterly within 30 days of
<br />receipt of funds from the State and verification documentation of project
<br />revenue performance by the developer. Distribution of the portion of the
<br />grant related to the local room tax shall follow the same timetable.
<br />ALL HOTEL/CONFERENCE CENTER DEVELOPMENT INCENTIVE GRANTS WILL BE CONVEYED
<br />BY A FORMAL AGREEMENT BETWEEN THE DEVELOPER RECEIVING THE GRA/gT AND THE
<br />CITY AND/OR COUNTY, AS APPROPRIATE. THE CITY AND/OR COUNTY, AS
<br />APPROPRIATE, SHALL PROVIDE FOR A PUBLIC HEARING PROCESS TO ALLOW FOR
<br />PUBLIC INPUT PRIOR TO THE FORMAL AUTHORIZATION OF ANY HOTEL/CONFERENCE
<br />DEVELOPMENT INCENTIVE GRANT AGREEMENT.
<br />
<br />IV. EXAMPLE APPLICATION OF THE GRANT PROGRAM
<br />Developer XYZ develops a hotel/conference center facility meeting the
<br />criteria established within the H/CCD addendum to the C/RD Incentive Grant
<br />Program:
<br /> Level I grant 300 rooms, 40,000 sof. conference space with a 15,000 s.f.
<br /> 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
<br /> 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~ of $ 7,000, 000 = $280,000
<br />Local retail sales tax from facility: first 1 cent = $17,000,000 @ 1%
<br /> = $170,000
<br /> two ~ cents = $17,000,000@1.16%
<br /> = $197,200
<br /> total retail sales tax generated = $367,200
<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
<br /> government = $4,614,813
<br /> Second five years ad valorem, sales and room tax to local government
<br /> = $8,724,925
<br />
<br />~iahland Creek Subdivision - Reguest to Extend APpeal of Petition C98-06(S) Until
<br />October 19, 1998
<br />
<br /> Mr. Clifton reported that the Attorney for the developer of Highland
<br />Creek Subdivision had requested an additional 30-day extension until the
<br />Board meeting on October 19. He recommended that the Board grant the
<br />extension, but advise the developer to be prepared to proceed with the
<br />requested appeal at that time if alternative solutions are not presented.
<br />Board members expressed general agreement with Mr. Clifton's recommendation.
<br />
<br /> UPON MOTION of Commissioner Barnhart, seconded by Commissioner Niblock
<br />and unanimously carried, the Board granted the extension until October 19,
<br />1998 for the appeal of Petition C98-06(S) for the Highland Creek Subdivision.
<br />
<br />Consideration of Lease Agreement between Cabarrus County and the L.I.F.E.
<br />Center for the New Facility tO be Built Adjacent ~O ~he SeniQr Center
<br />
<br /> Mr. F. A. "Alex" Rankin, III, Co-Chair of the L.I.F.E. Center Capital
<br />Campaign, advised that negotiations continue regarding a lease that would
<br />allow construction of the new L.I.F.E. Center on County property adjacent to
<br />
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