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Council approves lodging-tax rebate to support Home2 Suites hotel
Summary
Council approved an amendment to the economic development agreement with Varish LLC to provide a rebate of 3% of the city's 5% lodging tax for up to five years (or until $500,000 is paid), plus a temporary sales-tax rebate on eligible local construction materials.
The Gadsden City Council on July 28 adopted an amendment to its economic development agreement with Varish LLC to support a Home2 Suites hotel at 101 John Moore Way.
The amendment rebates 3% of the city's 5% lodging tax revenue generated by the hotel for five years from opening or until $500,000 has been paid to the developer, and it also rebates city sales tax paid on eligible locally purchased construction materials for 18 months following contract execution. Council President Beck described the terms on the record: "This is to grant a rebate of 3% of the city's 5% lodging tax revenue generated from the hotel for a period of 5 years commencing from the opening date or until a total of $500,000 has been paid to the developer." The motion to adopt carried on voice vote.
Council members did not record additional conditions or clawback provisions in the public discussion captured in the transcript. The measure links a local lodging-tax rebate to the developer's investment and local purchases of eligible construction materials.
