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Hotel tax would help fund ag expo center
Voters would have to approve 5 percent levy increase
by Ahmad Safi
Thursday, August 7, 2008

On 50 acres just off Interstate 29, county commissioners hope to reclaim Buchanan County’s agricultural envy by constructing a $30 million agricultural expo center.

But a day after voters overwhelmingly voted down a tax to provide expanded assistance to senior citizens, county commissioners are unsure whether to put the issue before voters on the Nov. 5 ballot.

They are proposing a 5 percent increase per night on hotel and motel rooms in Buchanan County to fund about half the cost to build the Buchanan County Ag Expo Center. The center would be a venue for a variety of agricultural events, such as equipment shows and rodeos.

That extra hotel tax would mean a visitor to Buchanan County would pay an additional $3.25 per night on the average $65 per night stay in the county’s 1,120 hotel rooms.

Voters must first approve the extra sales tax on hotel guests before the county could begin collecting for construction.

Eastern District County Commissioner Dan Hausman, one of the center’s main proponents, said the county hopes to begin construction by early 2010 and complete it by mid-2011. Commissioners have until the end of this month to decide whether to include the hotel tax on the November ballot.

If approved by voters, the hotel sales tax is expected to generate a little more than $1 million per year, Mr. Hausman said. It would be overseen by a seven-member board appointed by the Buchanan County Commission.

Currently, people who stay at a hotel or motel in Buchanan County pay a 3 percent tax to the city of St. Joseph.

Nancy France, general manager at the Ramada Inn in St. Joseph, said an 8 percent sales tax would put the St. Joseph area on more equal footing to hotel taxes in other cities in Missouri.

Even though her guests would pay more, she supports a new agricultural expo as a way to bring economic development to the county.

“I really believe (the ag center) will open up a whole new avenue of prospective people coming into town,” Ms. France said.

The 8 percent sales tax compares to 7.5 percent a night sales tax on hotel rooms in Kansas City.

Alan Carr, a spokesman for Kansas City Convention & Visitors Association, said patrons to Kansas City hotels also pay $1.50 to fund the Sprint Center and pay an additional district hotel sales tax in some parts of the city.

Mr. Hausman, who has spearheaded the expo center project since coming into office in 2004, said the Buchanan County Ag Expo Center design is an amalgamation of similar regional centers in cities like Springfield, Mo., and Topeka, Kan.

The design plans have grown from a $10 million fairgrounds into a more comprehensive project. The new plans have a larger arena, an expedition center, holding pens, and a RV park, he said.

The location for construction is east of Interstate 29 and north of U.S. Highway 169, northeast of the Shoppes at North Village.

The parcel of land was voluntarily annexed into the city of St. Joseph when the tax-increment financing for the Shoppes was approved, but the city would have no financial ties to the fairgrounds.

In addition to a hotel tax to partially fund the roughly $30 million project, Mr. Hausman said private donors and government grants are expected to cover the rest.

“A lot of people have said they will donate to it,” he said. “There is a lot of money to be tapped, and we just need to find it.”

Ahmad Safi can be reached at ahmadsafi@npgco.com.

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Posted by wildwest on August 7, 2008 at 2:57 a.m. (Suggest removal)

This is a great idea and I support the construction of it. Funding revenue I am still undecided on, while the tax thing may help, in St. Joseph, we have to get the reputation to command that type of an increase. There has to be more to come to for people to see and do and this should tie into the downtown development. Get a bold plan together and put all the pieces of the puzzle together, new convention center, this project, aggresive new directions for the museums to take to get new business, and incentives to the get the historic districts up to speed so they can truly command respect, that means getting utilization of every derlict property out there and cleaning things up. things to see and do. Run tours by
bringing back the trolleys and work on making an entertainment district a reality, a true entermaintment district, not bits and pieces.

Posted by MichaelH on August 7, 2008 at 7:19 a.m. (Suggest removal)

I'm shackin' up with Wildwest on this one.

Posted by wickedtruth on August 7, 2008 at 8:19 a.m. (Suggest removal)

Ditto!

Posted by heritage on August 7, 2008 at 8:40 a.m. (Suggest removal)

ww....i just do not see how an ag center with holding pens ties in with heritage tourism which you advocate. it doesn't matter because the voters will never approve this tax. maybe if we went with a bond issue........

the city just needs to get out of the way of investors and entrepreneurs, make environment more commodious and sit back and watch capitalism work. the felix street project is a mess, and no one is going to open anything more on felix until the "beautification" is finished. does anyone think that boondoggle will actually be completed before the ground freezes?

Posted by apmastrangelo on August 7, 2008 at 10:06 a.m. (Suggest removal)

IF anyone thinks additional taxing does not impact discretionary spending, like at a hotel, guess again. I travel regularly and when on the road for a 1 night stop do not worry about the tax issue. When at a location for 8,10, or more days, you better believe I will go down the road if saving 30 or 40 dollars.
The Ag Expo is a fine idea for the area but for those not getting the message let me help. People are becoming ever more fed-up with taxes and tax increases and will continue to resist such increases with their vote and spending practices.
Any venue truly worthy of building should also be capable of sustaining itself without added tax moneys.

Posted by AdAstra on August 7, 2008 at 10:08 a.m. (Suggest removal)

Great Idea! I was very against the tax proposal on the ballot, but would 100% support the hotel tax. This would be very good for St J and B County.

Posted by David on August 7, 2008 at 10:15 a.m. (Suggest removal)

I worked on/traveled with a carnival for several years so I've been to a few State and County fairs. This is a win win situation for all area businesses. Fair goers from outside the area will fill our area hotels and motels. Travelers always forget to pack something they will need on their trip so department stores will see an increase in business during the fair. Since everyone eats area restaurants will be packed while the fair is going on. I could go on but I'am sure you get my drift. As a rule it doesn't take me long to decide to vote no on a tax issue/increase but this one I will support. Hope to see you all at the fair.

God Bless America, God Save The Republic.

Posted by devinbroncs123 on August 7, 2008 at 11:34 a.m. (Suggest removal)

Hmmmmmm. Interesting thoughts. I say go for it. It will give added revenue to some of the local restaraunts from the crowds coming in.

apmastrangelo: Your comment was good. Where are the business travelers going to go if they are on a week long (or more) trip? Nowhere. They will stay right here in St. Joe. Gas is way too expensive. If it was somewhere in KC I would understand. Not St. Joe though.

Have a great day!

A Fellow Traveler

Posted by localgirl on August 7, 2008 at 12:47 p.m. (Suggest removal)

I like the idea, but wonder how well the economic development sales tax is being used. The Convention and Visitors Bureau has a pretty big budget from that tax. Also, what is the city doing with their tax proceeds? If anything the hotel tax from the city and the county (if approved) should fund tourism and the arts. The already existing economic development sales tax should fund new and expanding business and a convention center that can attract more than just ag industries.

Posted by Topshape on August 7, 2008 at 2:10 p.m. (Suggest removal)

This is a great idea, but has the county commission done their home work on on how it will pay for it's self. Can they collect the Hotel Motel Tax or it just for the city and not the county. A 30 million dollar project needs more investigation then just thinking it will work. I would suggest some type of fesablity study on the St. Joe site not from Booneville.

Posted by apmastrangelo on August 7, 2008 at 4:12 p.m. (Suggest removal)

devinbroncs - Do a search of hotels/motels not in B/C; trust me there are options.
As indicated, I believe the A/E in principal is a great idea for the area. The problem is in taxing to accomplish the goal. Indulge me for a moment in making a few points.

Rent a car at MCI - 4 day rate 143.80 taxes 72.48: wonder what I & other business people do when coming into MO when possible.

Here is one not so bad - you have a electric bill of 84.70 your tax is only 11.33.

Have a cell - monthly fee 59.51 (have a great business plan) taxes 8.81

Flown lately - last months flt R/T at MCI, air 271.64 taxes 61.36.

Any idea how many cities have and are considering expanding their city tax policy to now include groceries - many.

Don't get me wrong, taxes are a necessary evil and we get nothing for free. Unfortunately the practice is becoming more common for government agencies to just keep piling on the fees for pet programs. One last item to consider and I will get off my soap box. When you have some extra time with nothing better to do, break down every single dollar you spend for the month and calculate what percentage went to taxes - Don't forget to include your federal, state, and any of those use fees. Most taking the time to do this are usually shocked.

Posted by DADicated on August 7, 2008 at 9:38 p.m. (Suggest removal)

Though an agricultural expo center is of no interest to me at all (I would be more interested in a Legends-type entertainment/dining complex), I could support a hotel tax. Local residents would not be as burdened on this tax, and additional revenue for the city or county should never be frowned upon.

Posted by wildwest on August 8, 2008 at 3:59 a.m. (Suggest removal)

I love the Legends entertainment complex idea. One more piece of the puzzle to attract attention. That is what we need here, things to attract good attention and establish a good reputation. All the disputes and the inability to find common ground to move forward and get in more business and more people to spend money here does get out there in the real world. People read and when they see those things going on here, it sets a perception. St Joseph needs to find a way to overcome that. I always use this analogy when I speak with groups, Branson, population base a little over 6 thousand, but they manage to bring in huge amounts of revenue and have one heck of an infrastructure.

St Joseph, Population base over 73,000. With all we have here and all that could be done, there is still an uphill battle with many things. This Agri Expo could be a big boost and it is unique. But more is needed. Focus has to be on downtown and how a population base this size has let the downtown go the way it has over the course of time is perplexing, in my view there is no excuse for it and it needs to be fixed. Instead of blaming the 229 for the cause which I hear alot, it should look at as a potential asset to draw in traffic.

I support the bond idea with this project. The tax idea seems to be always the quick solution. Any there are many other causes out there taking that path to try and get tax increases for their agendas. Bonds, I would support a bond initiative for this project. I still might also support a tax initiative for this if there was an end game plan after construction and the place gets on its feet, like shift the tax to another project after so many months. That has been done in other projects throughout the country and has worked well.

By the way, I enjoy the conversation with this group of people on this forum. Lots of good ideas, healthy debate and opinion, and most of all, respectful of everyone's views.


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