Purpose

Amend the Hotel-Motel Tax Agreement with the Savannah-Georgia Convention Center Authority.

Background

In December 2016, the City and Georgia International and Maritime Trade Center Authority amended its agreement on the 1% hotel-motel tax that can be used for convention purposes only. The Authority, now called the Savannah-Georgia Convention Center Authority, is requesting an extension of the term to generate local funds for the Convention Center’s planned $275 million expansion, funded primarily by the State of Georgia.

Facts& Findings

1. Under the terms of this agreement, the 20-year agreement would expire on December 31, 2026
2. The extended 32-year term would expire on December 31, 2052
3. By Georgia law, the designated 1% hotel-motel tax must be used for convention center purposes only

Alternatives

1. Approve the amendment
2. Delay approving the amendment
3. Deny the request to approve the amendment (or take no action).

Analysis

Georgia law authorizes agreements between governments of up to 50 years. The increase would help the Convention Center meet its expansion goals. The City benefits because of increased hotel-motel tax revenue and increased sales tax from visitors that help to fund the City’s General Fund (main operating fund.

Approval of Alternative 1