Court hears first readings on transient-room-tax-backed bond plan for Grand (Grama) Theater

During the Sept. 24 meeting the Franklin County Fiscal Court heard first readings of ordinances that would authorize the issuance of dedicated tax-revenue bonds to finance renovations at the Grand (transcribed in some materials as the 'Grama') Theater.

Bill Cole and consultants described a conduit financing structure in which Save the Grama, a nonprofit, would take tax-exempt bonds through the county; a 2% additional transient room tax on hotel and short-term lodging receipts would be dedicated to pay bond debt service. Treasurer Amy Kwatman and consultant Keith Brock (referenced) explained the county would act as a conduit so the nonprofit can receive lower-cost, tax-exempt financing. Several magistrates asked for clarification about which county body or commission would collect and remit the special tax and whether the language in the ordinance correctly references that body.

Magistrates also questioned the projected repayment horizon and what happens to the dedicated room-tax revenue after bonds are retired. Bill Cole said the fiscal model anticipates early payoff (estimates cited varied), and the court’s responsibility would be to determine future use of the revenue once the bonds are retired; the revenue does not automatically revert to general fund operations.

The court did not vote on the ordinances at first reading. Staff said they would clarify language (including the named collecting authority) and return for second reading and vote.