The proposed additional tax revenue to the town has been provided by the developer says the Town gave him the details.
Tax Revenue Break Down
Water $152,830 (usage/rates?)
Meals $180,000 (Assumes $xxxxx restaurant meals revenue at what tax rate?)
Sewer $189,720 (usage/rates?)
Room/Occupancy $307,000 (Assumes $5,116,666 occupancy revenue at 6% max local rate – 100 room hotel would have to be booked 365 days a year at $140 a night to generate this revenue)
Property Taxes: $2,974,209 (Assumes over $100,000,000 assessed value)
68% of taxes go to schools (current operating budget only provides for 45% +/- of all town revenue to schools. There is nothing to enforce this estimate or how this additional revenue will be used.
[UPDATED 4/30/2017] Per Bob Landry’s research, here are the assumptions made for the estimated taxes.
Points of Interest:
The revenue estimates from this project will not be realized until the project is complete. If the developer is not going to break ground for 12-18 months and the project won’t be fully completed until 30-36 months after that, it will be nearly 5 years before this actual stream of revenue is available for the town. The value of this stream will not be same as though it had started day 1.
Questions:
Is this revenue estimate for the entire proposed ID3 zone or just the developer’s parcel and this new development?
What is the schedule of additional revenue to the town? When will the full amount estimated be a regular annual revenue stream?
If the developer is investing $200 million in this project, what will the assessed value be? How does the Assessed Value change as the project moves forward in several phases of building?
What are the assumptions used to make these estimates?
These are Gross numbers meaning that they don’t take into account the additional expenses which the town will incur to support the new project (ie. Police/Fire, Water/Sewer Dept, Inspections, etc.)
Where does the assumption of 68% of new tax revenues to schools come from?
Are there any specific deals in place between the town and the developer for this project to protect either side from these projections not being realized?
How much revenue to the town will there be from other sources such as permit fees?