Columbia City Council to Vote on Hotel TIF Changes
COLUMBIA - Columbia City Council is scheduled to vote Monday night on a bill which includes an amendment to an agreement for $3.2 million in tax increment financing for construction of the new Doubletree hotel.
The amendment includes several changes to the initial agreement. Those changes include:
- Extending the deadline for the project's developer, Dave Parmley of St. Louis, to disclose his public financing; the initial deadline was Dec., 2011 and the new deadline would be Sept. 31, 2012.
- Hotel construction must start within 90 days of the developer disclosing his private financing.
- The hotel's construction must be substantially completed within 18 months of beginning it.
According to the amendment, at least $250,000 must be spent in hard construction costs and receiving of a building permit are two requirements to officially commence construction.
The amendment also includes a provision to increase the agreement by $33,200 to include the estimated cost of issuance.
Tax increment financing - or, TIF agreement for short - means a local or state government will take out a loan to work on a current project, but the government will then pay off the loan with future tax revenue.
The council is scheduled to meet at 7:00 p.m. Monday night at city hall. To view the amendment in its entirety, click here.