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Council approves joint resolution and memorandum to extend innkeeper's tax support for Old National Bank Plaza amid debate over capital exclusions
Summary
The Vanderburgh County Council approved a joint resolution and a memorandum of understanding tied to the county's innkeeper's tax and the Old National Bank Plaza, including a $1 million threshold and a provision that excludes capital improvements from the rebate calculation. Council members debated taxpayer risk and asked for clearer exclusions; d
The Vanderburgh County Council approved a joint resolution and a related memorandum of understanding (MOU) that seek to extend and revise how a portion of the county’s innkeeper’s tax is allocated for support of the Old National Bank Plaza. The measures were approved in separate votes during the meeting; the joint resolution passed by roll call and the MOU was later approved, each recorded as unanimous in the transcript.
Why it matters: The actions affect how up to 2% of the county’s innkeeper (hotel) tax is treated, whether a 1% portion may be rebated to Explore Evansville under specified conditions, and how shortfalls in Old National Bank Plaza operations are counted over an extended period agreed among stakeholders. The measures are intended to limit immediate losses to county taxpayers while encouraging coordinated oversight by hotels, Explore Evansville and county officials.
What the council approved - A joint resolution (listed in the agenda as R-01-25-002) to pursue an extension and allocation plan tied to the innkeeper’s tax. That resolution passed on a roll call vote (recorded in the transcript as seven ayes, no nays). - A memorandum of understanding among county entities and Explore Evansville describing a $1,000,000 operating-loss target and a process by which, if the target is reached within the three-year extension window, the county will consider rebating 1% of the innkeeper’s tax to Explore Evansville and directing funds into the tourism capital improvement fund. The MOU as provided to the council was approved by the council in a separate motion, also recorded as unanimous.
Key details recorded in debate - The MOU sets a $1,000,000 threshold as the target for operating losses (the transcript identifies that $1,000,000 as a planning target discussed by stakeholders). Council members and presenters repeatedly discussed that the 2% innkeeper tax brings in roughly $1.2 million per year and that about 1% of that tax equates to roughly $600,000 in revenue. - Multiple speakers described recent annual subsidies to the plaza that are larger than the target; one presenter noted operating shortfalls in recent years in the order of “$1.7 million” or higher depending on the accounting used. The MOU language presented to the council excludes “capital improvements” from the calculation used to determine the rebate, which several council members criticized as insufficiently specific.
Concerns raised - Council member Raven (recorded in the transcript) objected to vague exclusion language and urged that any exclusions be spelled out, saying taxpayers’ funds must be treated like other county accounts and that the county needs a clear, detailed list of what will be excluded from the operating-loss calculation. Raven said, in part, that “this is taxpayers’ money. ... we need to treat this like we do every other account that we budget for.” - Other council members and presenters emphasized that the agreement was the result of extended negotiations among Explore Evansville, the Hotel/Motel Association and county officials and said the three-year extension represented a compromise that would provide time for oversight and pipeline rebuilding.
Votes and next steps - The joint resolution passed by roll call (transcript records seven ayes, no nays). The MOU was approved in a separate vote later in the meeting (also recorded as seven ayes, no nays). The council and presenters said they would continue to refine the MOU language, with an explicit pledge in the meeting to return with clearer definitions of excluded items so the council would know precisely what counts as an operating cost versus capital expense.
The council askedExplore Evansville, the Hotel/Motel Association and county staff to continue negotiations and report back with refined language and financial reporting for oversight. The MOU and resolution will be used by proponents in discussions with the state legislature; council members said a unified local position would improve chances for favorable statutory treatment.
