Quote:
Originally Posted by Williamoforange
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Are you sure about this? My understanding is that the city is going to forgo the uplift in the property tax for the next 25 years.
In other words, the (roughly) $4M in property taxes is not new taxes, but the status quo. i.e., this $4M is the property tax revenue that the city would be getting over the next 25 years from the un-improved property. If the hotel were NOT built (therefore NOT increasing the property's value, and, thus, the property taxes to $17M over 25 years), then this $4M would continue to be the money received by the city during that time -
assuming that nothing gets built for the entire 25 years.
That last bit is important. If the hotel is built now, then the city knows that it is forgoing about $13M over the next 25 years. But if the hotel is not built now, then staff is assuming that nothing will get built for the next 25 years.
Let's say that the passenger count of the airport continues to increase and a hotel does get built 3 years from now - without the city's 'help'. That would mean a property tax uplift, resulting in the $4M of 'base taxes PLUS the tax on the uplift for 22 years. This could mean an extra $11.5M of taxes over those 22 years.
A hotel has been planned for the past few years. Yes it was put on 'HOLD' while passenger numbers are low, but it is still in the plan. When passenger numbers increase, it will get built. That is my take.
Of course, the previous City Council has already put the grant program in place, so it is fair for the hotel to take advantage of it.
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