Hotel-motel tax recipients applaud new 3-year cycle

CEDAR RAPIDS - Non-profit cultural, educational and arts entities that have been regular recipients of hotel-motel tax revenue got some good news this week: Not only are the groups getting about the same level of funding next year as they've received in the past, but the money is guaranteed for the next three years with no need for them to reapply.

Terry Pitts, executive director of the Cedar Rapids Museum of Art, said the new approach was a way to let the community's non-profit entities share the limited hotel-motel funds “equitably and predictably” without the need too compete too hard and too often for funds.

“The non-profits in this town are great collaborators. We don't need to go into competitive mode with each other for a few thousand dollars,” Pitts said.

Rich Patterson, director of the Indian Creek Nature Center, also applauded the program's added element.

“There needs to be some accountability, but having a grant secured for three years means organizations save time normally spent writing proposals and the city saves time not reading and ranking them. ... Stable funding is enormously helpful,” he said.

The revenue recipients have been uneasy for months as city officials have discussed what, if any, additional portion of the hotel-motel funds might be needed to support the in-progress hotel and convention complex projects. The 7 percent tax has raised about $2.5 million a year for the city in recent years.

The council's action this week allocated $1.47 million of the annual hotel-motel revenue pot to local cultural, arts, educational and entertainment organizations. The largest recipient remains the Cedar Rapids Area Convention and Visitors Bureau, which will receive $775,000.

Last month, the council approved $1.258 million from the funding pot for annual City Hall obligations. Those include funding for the city's Paramount Theatre and Ice Arena, an annual financial commitment for economic development and payment on debt for the Ice Arena, The History Center, convention complex and Cedar Rapids Museum of Art.