Council earmarks $3.575 million in hotel-motel taxes, including $100,000 commitment for NewBo City Market expansion

On Sept. 9 the Cedar Rapids City Council adopted a resolution authorizing FY2026 hotel-motel tax allocations totaling $3,575,000 for existing city commitments. Abideshmandi, the city finance director, told council the city's prior resolution committed $100,000 to the NewBo City Market grocery expansion as $20,000 annual payments over five years. The item before council earmarks the $100,000 within the hotel-motel fund over the next two years: $50,000 in the current year and $50,000 next year. Abideshmandi said the earmark does not immediately disburse cash; payments for eligible expansion expenses will be processed on a reimbursement basis when receipts are submitted. Council member Poe asked for confirmation that the commitment is reimbursement-based; Abideshmandi confirmed and said some hotel-motel grant funds are handled the same way. Council member Meyer announced a recusal from agenda item 8 before the discussion; the meeting record shows the resolution was adopted by voice vote after council discussion, with the motion moved by Van Orny and seconded by Poe and the motion carrying. City staff described the hotel-motel fund accounting action as reserving funds for previously approved commitments and requiring eligible receipts for disbursement to the NewBo grocery expansion project.