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Kalahari waiver facing a hitch page 3
City scrambling for solution on EDA fee waiver request from Kalahari Resorts


Date published: 5/7/2010

continued

When the performance agreement was negotiated, the city's occupancy tax stood at 5.5 percent. It's since been increased to 6 percent. The $125,000 that would go to the EDA annually for 10 years would come out of that 0.5 percentage point difference, under Cameron's proposal.

Revenue projections estimate that the added 0.5 percentage points would cover the $125,000 annual payment.

Kalahari and the city would split the payment to the EDA along the same formula calculated in the performance agreement. So the city would pay 52.5 percent of the annual fee, for a total of $656,250 to the EDA over 10 years.

The remaining amount over 10 years--$593,750--would be paid to the EDA by Kalahari. That is money that Kalahari otherwise would have been reimbursed under the performance agreement.

Cameron is scheduled to present details of the proposal at the EDA's meeting Monday in City Hall. Scott Little, who is managing the Celebrate Virginia project for the Silver Cos., is also scheduled to address the EDA.

Bill Freehling: 540/374-5405
Email: bfreehling@freelancestar.com


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Go to the Business Browser blog on Fredericksburg.com to read primary documents relating to this article, including Herlong's letter to Kalahari's attorney.

http://blogs.fredericksburg.com/businessbrowser/