Bradley County Commissioners voted at Monday night’s meeting to raise the tax on hotel rooms, lodgings, and accommodations in Bradley County from five percent to seven percent.
The tax increase serves as an amendment to the Private Acts of 1991 and 2004. The contract for the amendment is between Bradley County, the Chamber of Commerce, the Industrial Development Board (IDB), and the Tri-State Exhibition Center.
It must be approved by the Legislature to go into effect.
The contract states: “The proceeds received by the County from the tax shall be retained by the County and allocated as follows: 80% for tourism and economic development and 20% for the County general fund.”
Commissioner Milan Blake put the amendment up for vote. He discussed how the tax revenue would be distributed for economic and tourism development, stating that 39.2 percent would go to the general fund to be paid to the Chamber of Commerce. The Chamber would put half of the 39.2 percent towards economic development, and the other half towards tourism development.
Commissioner Blake said 17.9 percent would go to the Tri-State Exhibition Center Fund for tourism development, and 22.9 percent would go to the Economic Development Fund.
The contract states, “Approximately $300,000 will be transferred to the Debt Service Fund 151, for the completion of capital improvements to Spring Branch Industrial Park. Once the County has retired its portion of the bonds for Spring Branch Industrial Park, the funds obtained for that purpose will be retained in the 172 Fund to be used for similar projects in the future.”
No matter where the revenues go, the county is obligated to pay off debt first, Commissioner Dan Rawls said.
The remainder of the funds, once the debt is paid off, should go into the Economic Development/Tourism Development Fund. This fund is designed for significant projects like that of Spring Branch Industrial Park. In order to grow this account to a substantial amount, no money would be permitted to be withdrawn from it for three years, from July 2016 to 2019, Commissioner Blake said.
Commissioner Rawls said the profound part of this plan is to save money so that five to 10 years down the road there is enough money to take care of some of the projects the County needs to work on.
Thirteen commissioners voted in favor of the amendment. No one opposed. Vice Chairman Jeff Yarber was absent.
On another topic, the motion to purchase the Keith Street Property failed. Commissioner Blake said the property has been used as a public parking lot next to a greenway in the heart of downtown Cleveland. The property owner put it up for sale, so the city asked the county to go in with them 50/50 to buy it in order to keep it a public parking lot.
The property reportedly appraised at almost $300,000.
Seven members, including Commissioner Blake, voted in favor of the motion to buy the property, and six members voted against. One member was absent. The motion to buy the property failed.
A resolution was passed to authorize the county mayor to enter into a four-year contract with Trinity Food Services to provide inmate food services to the County Jail. Each meal will cost $.73.