Springfield voters in November could vote on a 3% hotel/motel guest license tax increase to help pay for a convention and event center in the city.
During a council lunch meeting Tuesday, council members heard from city staff and discussed the proposed tax increase. It would be paid by overnight visitors staying in the city’s hotels, motels, tourist courts and short-term rentals.
The City said in a statement that a critical driver in the timing is the chance to secure $30 million in state funding for the project. That funding is currently on a state withhold list pending stability of state revenues and demonstration of a local $30 million match and project readiness.
The proposal follows the release earlier this month of the Hunden Report, which found that a new 125,000-square-foot convention center downtown could drive $1.3 billion in spending.
When the bill goes before council on July 28, a public hearing and a vote will be held that night.
Councilman Craig Hosmer asked why city officials wanted to address it all in one night to which Mayor Jeff Schrag responded "I can give you my opinion on that and that is to show the State of Missouri that we mean business and to move forward with dispatch to show the State that we want our match and that the City means business."
Hosmer expressed concern that council wouldn’t have time to consider any comments that might be made during Monday night’s public hearing. Councilman Brandon Jenson pointed out that they could always table the measure if they need to and that the public would be able to make their choice at the ballot box.
Amanda Ohlensehlen, director of economic vitality for the City of Springfield, laid out some financing options for building a new event and convention center. They include the proposed tax increase, a ½-cent sales tax for transformational projects approved by voters last November, state funds, reallocation of existing hotel/motel tax revenues and additional public-private partnerships as well as naming rights, sponsorships and event-related revenues.
In a statement she said of the new tax that "Springfield’s proposed increase to 16.10% would still keep it competitive and below average compared to many regional destinations, while moving it closer to the mid-range of hotel tax rates in the region."
If council votes Monday night to place the measure on the ballot, the city will begin an educational campaign the next day.
