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Council approves 2% CID and incentives for Holiday Inn Express renovations
Summary
The City of Mayes approved an ordinance creating a 2% Community Improvement District (CID) and authorizing incentives tied to up to $2.25 million in renovations at the Holiday Inn Express; the CID term was set for up to 22 years and includes a 2% rebate of the city's transient guest tax for the property.
The City of Mayes voted unanimously Thursday to establish a Community Improvement District to fund renovations at the Holiday Inn Express at 10750 Hampton Lake Street.
City staff told the council the developer plans to invest about $2,250,000 in renovations and improvements and asked the council to establish a 2% CID sales tax limited to the hotel parcel, together with a 2% rebate of the city's 8% transient guest tax for up to 22 years to help reimburse eligible project costs.
City manager (speaking at the meeting) said the CID is structured as a pay-as-you-go reimbursement: "Under this proposed agreement, the developer will invest approximately 2,250,000 in renovations and improvements to the Holiday Inn Express," and the city will remit CID funds annually after the developer submits certificates of eligible expenditures and supporting invoices. He added the agreement includes provisions to protect the city if the hotel changes ownership or loses its franchise flag.
The ordinance approved by the council authorizes a 2% CID tax levied only on the hotel parcel and establishes a reimbursement cap of $2,250,000. Council discussion clarified that the CID would terminate earlier if the reimbursement cap were reached or if the property failed to meet conditions such as maintaining its franchise designation; council member and counsel described transfer and delinquency provisions that would allow the city to end the CID in some circumstances.
Mitch Walters, who assisted drafting the development agreement, described the mechanics: developers will submit a certificate of eligible expenditures with invoices; the city will review and remit CID funds as they become available. He confirmed payouts would be withheld until contractual completion of required work.
The council opened the public hearing on the CID and, after hearing no public comments, closed it and adopted the ordinance; the mayor called for ayes, and the motion carried.
What happens next: the development agreement and CID ordinance are in place and the city will process developer reimbursement claims under the terms of the agreement. The council said it will revisit the arrangement if the hotel loses its franchise flag or if ownership changes.
