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Atlantic Parks & Rec Board Hotel-Motel Tax update

News

February 20th, 2023 by Ric Hanson

(Atlantic, Iowa) – (UPDATED) A motion to request or recommend to the Atlantic City Council, an increase in the Hotel-Motel Tax died for lack of a second, during a meeting of the Parks and Recreation Board, Monday evening. The measure would have proposed increasing the Parks share of the tax from four-to seven-percent. It’s expected the Board will make it’s request or recommendation to the Council, at a later date, so that they can vote on whether or not the matter should be placed before the voters, in November. Ashley Hayes explained the current seven-percent tax is a COMBINATION of state, county and city sales tax rates (Local Option sales tax funds), with three-percent directed CADCO and the Chamber of Commerce.

That was passed about six-years ago, she said. Hayes said also, Atlantic is the lowest in the State, with regard to the Hotel-Motel Tax.

When it was passed in 2010 it was designated for “improving, repairing, operating and maintaining parks and recreation facilities and grounds for the city of Atlantic.” Since then, it has netted the Parks Department $463,199. Hayes crunched the numbers, and said if the Parks Department had received the full seven-percent of the tax instead of just four-percent, it would have generated $810,599 to be used for various parks projects.

A number of local hotel-motel owners expressed their opposition to raising the tax. None were opposed to the Splash Pad concept, but at the same time, they didn’t want to raise the tax on their guests if it was to be used specifically for the Splash Pad. That rumor, or misconception – that the tax increase was only for the Pad – according to Ali Pieken, with the Splash Pad Executive Committee, was news to her.

The City of Atlantic has already agreed to chip-in $50,000 for the Splash Pad, with the remainder to be accumulated through fundraising. Hayes acknowledged getting money from other sources, such as grants and fundraising, is not as simple as it sounds.

Ali Pieken presented to the Parks and Rec Board final renderings of the proposed Splash Pad Project from Crouch Recreation from Elk Horn, Nebraska, and Vortex Aquatic Play Solutions. The Board was overwhelmingly in support of using the renderings from Crouch Recreation as the impetus to move forward in garnering interest for fundraising. The difference between the two renderings was like night and day, even though both had most of the elements the Committee was hoping to add to the facility.

In other business, the Atlantic Parks and Rec Board agreed to support a request from Frank Saddlemire, who was instrumental in designing, raising the money and building a very popular Disc Golf course to Sunnyside Park. Saddlemire will be allowed to write a grant for new signs at the course.

Saddlemire produced data that show how many people come to town for all-day tournaments and casual play. The data was “mined” through U-Disc, a scoring app. Attendance for Disc Golf has increased each year, except for the last, due to an increase in gas prices and people less willing to travel, he said.

The Atlantic Parks Board, Monday, announced plans for a Park Party, that will take place June 17th from 10-a.m. until 2-p.m., at Sunnyside Park. Additional details will be released in the months to come.