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South Beloit to give funds to Visit Beloit
By Clint Wolf
News Editor
One percent of city's hotel tax revenues will be used to promote Greater Beloit
South Beloit will give part of its hotel/motel tax revenues to Visit Beloit, which in turn will promote the Greater Beloit area as a tourism destination.
The South Beloit City Council approved giving 1 percent of the 5 percent hotel/motel tax to Visit Beloit during a special meeting Thursday.
“We would like to work with South Beloit to help fill the new hotels here,” said Martha Mitchell, executive director of Visit Beloit.
Best Western opened near the intersection of Willowbrook Road and Gardner Street, along the Interstate 90 corridor, about a year ago. It was the first new hotel built in South Beloit in 40 years.
Plans are advancing to build a Country Inns and Suites, also near I-90. Construction is expected to begin in June. Jim Agate and Bill Lock are the main investors in that project.
South Beloit Mayor Randy Kirichkow also said he has been approached by someone interested in building another hotel west of the interstate.
Kirichkow said it is hard to calculate how much revenue Visit Beloit will receive from the hotel/motel tax. He said the city currently collects about $4,000 a month from the tax, but he estimates once the new hotels are in place, that figure could rise to about $10,000 a month.
Mitchell said Visit Beloit uses funds to market the Greater Beloit community as a whole. The agency promotes community events through advertising and other means, and on its Web site, it provides information and links to area hotels.
Jim Agate, one of the investors in the Country Inn and Suites, said very few hotel customers come to stay in a hotel and leave immediately.
“They go out to eat at local restaurants and shop in local stores,” Agate said.
Rich Hatfield, of Best Western, said he supports funds going to Visit Beloit, but he pointed out when the city raised the hotel/motel tax from 4 percent to 5 percent about two years ago, it was with the promise that the hotels would get 1 percent back to pay for advertising the hotels.
Commissioner Bob Stone said a question of legality cropped up in the idea of rebating tax revenues to hotels. He said the state law dictates the hotel tax revenue is to be used exclusively for promoting tourism and increasing overnight stays in the community.
“What we have to be careful of is we have to make sure the 1 percent rebate is going for what it is meant for,” Stone said.
It was suggested, if the hotels presented documentation of advertising costs, the city might issue funds to reimburse them. Another suggestion was for the city to pay for billboards along the interstate promoting hotels in the city.
The council members said they would pursue the issue further during the regular city council meeting Monday.
South Beloit will give part of its hotel/motel tax revenues to Visit Beloit, which in turn will promote the Greater Beloit area as a tourism destination.
The South Beloit City Council approved giving 1 percent of the 5 percent hotel/motel tax to Visit Beloit during a special meeting Thursday.
“We would like to work with South Beloit to help fill the new hotels here,” said Martha Mitchell, executive director of Visit Beloit.
Best Western opened near the intersection of Willowbrook Road and Gardner Street, along the Interstate 90 corridor, about a year ago. It was the first new hotel built in South Beloit in 40 years.
Plans are advancing to build a Country Inns and Suites, also near I-90. Construction is expected to begin in June. Jim Agate and Bill Lock are the main investors in that project.
South Beloit Mayor Randy Kirichkow also said he has been approached by someone interested in building another hotel west of the interstate.
Kirichkow said it is hard to calculate how much revenue Visit Beloit will receive from the hotel/motel tax. He said the city currently collects about $4,000 a month from the tax, but he estimates once the new hotels are in place, that figure could rise to about $10,000 a month.
Mitchell said Visit Beloit uses funds to market the Greater Beloit community as a whole. The agency promotes community events through advertising and other means, and on its Web site, it provides information and links to area hotels.
Jim Agate, one of the investors in the Country Inn and Suites, said very few hotel customers come to stay in a hotel and leave immediately.
“They go out to eat at local restaurants and shop in local stores,” Agate said.
Rich Hatfield, of Best Western, said he supports funds going to Visit Beloit, but he pointed out when the city raised the hotel/motel tax from 4 percent to 5 percent about two years ago, it was with the promise that the hotels would get 1 percent back to pay for advertising the hotels.
Commissioner Bob Stone said a question of legality cropped up in the idea of rebating tax revenues to hotels. He said the state law dictates the hotel tax revenue is to be used exclusively for promoting tourism and increasing overnight stays in the community.
“What we have to be careful of is we have to make sure the 1 percent rebate is going for what it is meant for,” Stone said.
It was suggested, if the hotels presented documentation of advertising costs, the city might issue funds to reimburse them. Another suggestion was for the city to pay for billboards along the interstate promoting hotels in the city.
The council members said they would pursue the issue further during the regular city council meeting Monday.
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