If Salmon Arm council and residents agree, visitors to the community may help to pay some infrastructure costs. A delegation representing the Salmon Arm Hotel Association, Shuswap Recreation Society and the Shuswap Hut and Trail Alliance appeared before council on Monday.
Speaking on behalf of the delegation, Salmon Arm Hotel-Motel Association president Kent Schneider told council that 75 per cent of the local hotel operators are in favour of an additional two per cent hotel tax to fund a third sheet of ice at the Sunwave Centre and support trail development on the Shuswap Hut to Hut Trail. As well, they want 80 per cent of funds acquired through the tax to go towards the new sheet of ice, with the remaining 20 per cent going to trail development. Speaking in favour of the proposal, Coun. Chad Eliason told councillors the creation of both items would increase economic benefits for the area. "It's a great way to get our visitors to help pay for some of our infrastructure costs," he added. Coun. Marg Kentel agreed, offering kudos to the delegation for their hard work in putting the proposal together. "Ice time is at capacity," she said. "I am very excited about this going to budget." Having support from the majority of area hotels, city council can now pass a bylaw permitting the additional tax, said city administrator Carl Bannister, who pointed out councillors will also have to decide if they want to borrow the money up front. "We think that two per cent (collected from the hotel tax) will amount to about $130,000 annually and 80 per cent of that will be approximately $104,000," said Monica Dalziel, director of corporate services, pointing out the numbers are based on an assumption that the third sheet of ice would cost $4 million. "The taxpayers of Salmon Arm would be paying two-thirds of the debt repayment, which is estimated at about $325,000 per year over a period of 25 years." If council approves the proposal, a long-term borrowing bylaw would need to go through the alternate approval process and or a referendum. This hotel-motel tax bylaw would have to be renewed at the end of the five-year term, at which point hotel and motel owners would have to go through their own approval process again.
Speaking on behalf of the delegation, Salmon Arm Hotel-Motel Association president Kent Schneider told council that 75 per cent of the local hotel operators are in favour of an additional two per cent hotel tax to fund a third sheet of ice at the Sunwave Centre and support trail development on the Shuswap Hut to Hut Trail. As well, they want 80 per cent of funds acquired through the tax to go towards the new sheet of ice, with the remaining 20 per cent going to trail development. Speaking in favour of the proposal, Coun. Chad Eliason told councillors the creation of both items would increase economic benefits for the area. "It's a great way to get our visitors to help pay for some of our infrastructure costs," he added. Coun. Marg Kentel agreed, offering kudos to the delegation for their hard work in putting the proposal together. "Ice time is at capacity," she said. "I am very excited about this going to budget." Having support from the majority of area hotels, city council can now pass a bylaw permitting the additional tax, said city administrator Carl Bannister, who pointed out councillors will also have to decide if they want to borrow the money up front. "We think that two per cent (collected from the hotel tax) will amount to about $130,000 annually and 80 per cent of that will be approximately $104,000," said Monica Dalziel, director of corporate services, pointing out the numbers are based on an assumption that the third sheet of ice would cost $4 million. "The taxpayers of Salmon Arm would be paying two-thirds of the debt repayment, which is estimated at about $325,000 per year over a period of 25 years." If council approves the proposal, a long-term borrowing bylaw would need to go through the alternate approval process and or a referendum. This hotel-motel tax bylaw would have to be renewed at the end of the five-year term, at which point hotel and motel owners would have to go through their own approval process again.
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