By Tracy Overstreet
tracy.overstreet@theindependent.com

As currently worded, the legislation calls for the community of Grand Island to contribute $8.5 million toward that move.

Where would the money come from?

Grand Island City Administrator Jeff Pederson said that during the past two weeks "discussion has shifted to a possible increase in the occupational tax (motels) as a means to service the debt on a bond issue of $5 million to meet the major portion of the community cash requirement."

"The city has not anticipated to be in the position of issuing bonds," Pederson said Tuesday. "I'm not saying that there's not a prospect for that it's just too early" to tell.

Don Dunn, chairman of the Grand Island Area Chamber of Commerce, said state statute allows a bond of up to $5 million for such capital improvements.

That's a bond that could be issued by the city, the county or by both through an interlocal agreement.

Dunn said the bond is just one of a number of funding ideas.

But it's an idea that Hall County Convention and Visitors Bureau Director Renee Seifert said puts a burden on the very hotels and motels that have already helped financially in the creation of the Heartland Events Center.

"If they increase the tax on the hotels, I don't think the hotels will go for that," Seifert said. "I think the lodging community has stepped up to the plate two times before and they have given an awful lot."

The lodging community already charges a 2 percent city occupation tax and a 2 percent county visitor promotion tax, both of which go toward the Heartland Events Center at Fonner Park.

All told, Grand Island hotels and motels charge a 14 percent tax, compared to 14 percent on rooms in Kearney and 13 percent on Hastings rooms.

Instead, Seifert suggested another sector of the travel and tourism industry be taxed the food and beverage industry.

While the county's 2 percent lodging tax is paying off a $2.3 million events center bond over 15 years, Seifert said just a 1 percent food and beverage tax could have paid off that same bond in three to five years.

Taxing restaurants could be tricky, though.

"You have to be uniform," Dunn said. "What is a restaurant?"

Other ideas for funding include seeking property tax dollars from the Community Redevelopment Authority that collects about $500,000 a year, seeking property or sales tax dollars from Grand Island's Local Option Municipal Economic Development Fund that collects $750,000 a year, and seeking county keno proceeds that collect about $300,000 to $400,000 a year, once the county's contribution to the events center is complete.

County supervisors pledged $1 million to the Heartland Events Center in 2003 to be paid $150,000 a year for six years and $100,000 the seventh year.

The city also collects keno revenues, but Dunn said no talk has centered on using those funds as part of the $8.5 million community match because the city will need to match state lottery proceeds that go into the State Fair. That match is estimated to cost about $200,000 a year.

Pederson said he believes the State Fair will generate an increase in the city's sales tax revenues that can offset the lottery fund match.

The other major consideration to come with Grand Island's $8.5 million share is raising the Hall County Agricultural Society's property tax asking.

It's currently at nearly $5 for a $100,000 home. That .004643 levy raises nearly $153,000 annually for the county fair board.

Dunn said bumping that up to $10 for a $100,000 home would generate an additional $150,000 a year and would go a long way toward servicing bond debt.

Any increase in the levy is something of concern to Hall County, though.

County board assistant Stacey Ruzicka said the county is subject to both revenue growth restrictions and tax levy lids.

The county can have a cumulative levy of .50 (50 cents on $100 of valuation) for its general operations, the largest fire district in the county, the airport, ag society, Stuhr Museum and other entities such as the Educational Service Units. The county is currently at .458660.

That doesn't leave a lot of room for increases and the county and city both are facing additional costs with new buildings such as the library, Law Enforcement Center and the jail.

The local committee pursuing the State Fair said government funds aren't the only ones being studied.

"A portion of the funds would be from private donors," Dunn said. "We haven't actually pursued private donations until there was something to donate to."

While various funding ideas are being tossed about, no commitment has to be made until year end.

The Legislature wants $3 million committed by Grand Island by Oct. 1. A total of $6 million must be committed by Feb. 1, 2009, and all $8.5 million must be committed by July 1, 2009.

"I can't tell you what the final program will look like for funding," Dunn said.

Motel/hotel taxes

Here's how the taxes stack up on Tri-City hotel/motel rooms.

Grand Island

5.5% State sales tax

1.5% City sales tax

1% State lodging tax

2% County lodging tax (operates the CVB)

2% City occupation tax (for the HEC)

2% County visitor improvement tax (for the HEC)

14% Total

Hastings

5.5% State sales tax

1.5% City sales tax

1% State lodging tax

2% County promotion fund

0.5% City occupation tax

1.5% City occupation tax (for Hastings Museum)

1% City occupation tax (incentive fund)

13% Total

Kearney

5.5% State sales tax

1.5% City sales tax

1% State lodging tax

2% City occupation tax

4% County lodging tax

14% Total

Sources: Hall County Convention and Visitors Bureau, Adams County Convention and Visitors Bureau, Buffalo County Convention and Visitors Bureau.