A portion of the funding for Kyle Field's massive redevelopment includes a plan to increase the hotel/motel tax rate in Brazos County, an increase once reserved for a now-shelved College Station project, a source tells News 3.
The announcement of the plan will take place Wednesday at The Zone Club at 3:00 p.m. as part of a gathering called by the A&M System featuring university and local government leaders.
View live streaming of the press conference here .
The source tells KBTX local leaders will petition the Texas Legislature to change the language of an approved hotel occupancy tax increase of 0.75 percent. That hike had previously been set to help College Station pay for the building of a convention center.
In October 2008, the city purchased the Chimney Hill Shopping Center off of University Drive for close to $10 million, but later chose not to proceed on the project.
If the language of the 0.75 percent HOT tax increase would be changed by the legislature and implemented, it would cover all of Brazos County for the length of any bond issued by A&M for Kyle's redevelopment, according to the source. That length is currently projected to be 30 years.
It is believed that funding stream will produce in the neighborhood of $500,000 in the first year.
In addition, College Station would reportedly contribute additional, existing HOT tax money under the plan. However, in order to make it work, Kyle Field must be made available for community events such as concerts or other sporting events, an example being the recently-created Brazos Valley Bowl hosted by Blinn College for junior college football.
A HOT tax is "imposed on a person who pays for a room or space in a hotel costing $15 or more each day," according to the state comptroller's website. "Local hotel taxes apply to sleeping rooms costing $2 or more each day. The tax covers hotels, motels and bed and breakfasts, as well as condominiums, apartments and houses rented for less than 30 consecutive days."
As first reported by News 3, last year during early talks on the topic, A&M floated a $38 million figure to Bryan, College Station and Brazos County that the trio might pay as part of a $425 million project.
The aging stadium will eventually see its west and east stands undergo massive reworking, demolition and rebuilding, along with the creation of a set of seats and facilities on the south side. Construction on the stadium would likely not begin until the 2013 football season ends, but demolition of some surrounding buildings like G. Rollie White Coliseum has been authorized by the System to begin at any time in the current fiscal year.
The Populous design firm and Manhattan-Vaughn Construction are working with A&M on the project.
Discussions continue on a projected official seating capacity, according to the source, who says the low end in the talks is 93,000. The current capacity of Kyle Field is 82,600, according to the Aggie Athletics website, though games recently have regularly featured attendances closing in on 90,000.
According to the state comptroller's website, the following are the last four quarters of hotel receipts reported by College Station:
2011, 4TH QUARTER
Taxable Receipts: $11,917,604.93
2012, 1ST QUARTER
Taxable Receipts: $11,803,870.86
2012, 2ND QUARTER
Taxable Receipts: $12,145,184.20
2012, 3RD QUARTER
Taxable Receipts: $13,304,117.46
System Chancellor John Sharp, A&M President R. Bowen Loftin, College Station Mayor Nancy Berry, Brazos County Judge Duane Peters and Bryan-College Station Convention & Visitors Bureau Chairman Hunter Goodwin will attend the announcement, according to the A&M System notice.
Upload your photo, with a caption of your reason to smile, then watch the last half hour of BVTM from 6:30A - 7A Monday mornings to see if your photo makes it.