HomeMy Public PortalAbout2016-09-16 Handout - Joe Lauber - Finance GraphJefferson City, MO
Proposed Truman Hotel TIF
Lodging Tax Pledge
Where the Money Comes From
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Over it's term, it is estimated that the Truman Hotel TIF will generate $12.5 million in Lodging Taxes. Under
the proposed agreement with the developer, the city will contribute toward payment of the Reimbursable Project
Costs an amount equal to 50% of the Lodging Taxes collected within the TIF district. This will enable an equal
amount of property tax increment to be declared surplus and returned to the taxing entities in proportion to their
share of the overall tax rate.
However, only 47% of the Lodging Taxes flow to the city, per city ordinance. The remaining 53% goes to the
Convention and Visitors Bureau. Therefore, distribution of the $12.5 million in estimated Lodging Taxes
collected within the Truman Hotel TIF is anticipated to be as illustrated in the following chart.
The city's anticipated Lodging Tax receipts from the newly constructed hotels of $5.9 million will not be
suffiicent to cover the $6.25 million commitment to the project. Therefore it is anticipated that the balance will
be paid from new Lodging Tax revenues from the annexed hotels.
Annexed
Hotels,
$350,000
Should proposed annexation of the developer's existing hotels not occur, the estimated $350,000 over the
life of the project would have to come from another source. This could be Lodging Tax receipts from existing
hotels, the property tax increment that would be received from the Truman Hotel TIF project, or other legally
available funds.
Springsted Incorporated
September 15, 2016