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Res 2025-126 concerning Project Cat Tree and approving a Chapter 380 Economic Development Incentive Agreement with Midway Development, LLC, providing incentives in the form of partial rebates of hotel occupancy and sales taxes
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Res 2025-126 concerning Project Cat Tree and approving a Chapter 380 Economic Development Incentive Agreement with Midway Development, LLC, providing incentives in the form of partial rebates of hotel occupancy and sales taxes
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8/14/2025 3:34:20 PM
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City Clerk - Document
Resolutions
City Clerk - Type
Approving
Number
2025-126
Date
8/5/2025
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order to receive a reimbursement for sales tax on materials sourced to the Land prior to the opening <br /> of the Hotel, the Developer shall submit to the City a request for such reimbursement on a form <br /> substantially similar to the form attached hereto as Exhibit"D." <br /> Section 4.02. Percentage Rebate for Chapter 380 Payments. <br /> (a) The Chapter 380 Payments shall begin at ninety-five percent (95%) of Sales Tax <br /> Revenue and ninety-five percent (95%) of Hotel Tax Revenue. The Chapter 380 Payments shall <br /> decrease over time as the Hotel portion of the Building Improvements achieves performance <br /> thresholds based on the Hotel's previous year's performance according to the following: <br /> Revenue Per Available Room (RevPar) calculated as the average daily rate (ADR)X occupancy <br /> Ex: RevPar($225)=ADR($300)X Occupancy (75%). <br /> HOT/Sales Tax 95% 75% 50% 25% <br /> Rebate% <br /> RevPar <$225 $225-$250 $250-$275 >$275 <br /> (b) If the City makes a payment to the Developer as a reimbursement for sales tax paid on <br /> materials on the Land prior to the opening of the Hotel, then the Parties shall use a form <br /> substantially similar to the reimbursement form attached hereto as Exhibit"D."The period for the <br /> reimbursements made under this provision shall be between the Commencement Date and the <br /> opening of the Hotel, which is the date on which the Hotel becomes operational and is able to <br /> accommodate overnight guests. <br /> Section 4.03. Process for Payment. Beginning in the year 2029, and for each year <br /> thereafter, until and including the year 2045, the Developer may request a Chapter 380 Payment <br /> by written application submitted to the City Manager of the City. The City shall not be required <br /> to make a Chapter 380 Payment for any applicable calendar year until: <br /> a. The Developer submits to the City a compliance certificate in a form <br /> substantially similar to the form attached hereto as Exhibit "C" (the "Compliance <br /> 7 <br />
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