The Cedar Rapids City Council on Sept. 9 adopted a resolution authorizing $3,575,000 in fiscal year 2026 hotel-motel tax allocations to cover outstanding city commitments, including a $100,000 commitment toward the NewBo City Market grocery expansion.

Finance Director Abideshmandi told the council the council previously committed $100,000 to the NewBo City Market expansion in a resolution providing $20,000 annually over five years. The action before the council earmarked $50,000 of that commitment in the current year and $50,000 for the following year for accounting purposes; the funds will remain in the hotel-motel fund and will not be disbursed until eligible expenses are submitted on a reimbursement basis.

"That doesn't mean that we are sending that payment at this point. We're just accounting that in our hotel motel fund. That is a commitment from the city," Abideshmandi said. He added that similar hotel-motel grant funds are commonly disbursed on a reimbursement basis.

Council Member Poe asked for confirmation that the commitment will be paid on a reimbursement basis, and Abideshmandi confirmed the plan. The resolution authorizing the $3,575,000 allocation was moved by Van Orney and seconded by Poe and carried on a voice vote.

The resolution documents the city's commitments and earmarks the NewBo City Market grocery expansion funds for eligible reimbursement expenses; no payment schedule beyond the council's prior $20,000-per-year framework was changed at the meeting.