City lodging tax increases; Old Black Bear receives incentive

Published 7:00 pm Tuesday, July 18, 2023

Guests staying overnight in Athens’ hotels and motels will soon see an increase in rates. The Athens City Council voted to increase the city’s lodging tax from 7 percent and a $1 charge per room to 9percent and a $2 charge per room.

“This will give us an opportunity to offset some of the debt service that is also needed for not only tourism, but also to improve quality of life, things like some of our green space, maybe our parks. Because, in the near future, we will need to be going back to the bond market and things we can do to offset and raise the revenue stream. I think it’s a good thing to do. I think it is well within the boundary of what other cities do,” Mayor Ronnie Marks said.

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The increase in the lodging tax is similar to the percentages charged by neighboring cities. Decatur recently increased its lodging tax to 10 percent. The City of Huntsville’s lodging tax is 13 percent, and the City of Madison’s is 9 percent. Each of these cities also charges a per night, per room surcharge.

The city council approved an incentive package for Old Black Bear Brewery opening on South Marion Street. The ordinance and resolution for the economic development project reads as follows.

“The city would annually pay the company in arrears 100 percent of the proceeds from the city sales tax actually received by the city from the Old Black Bear Brewing Company net of certain costs for a period of 5 years or until $100,000 paid by the city to the company, whichever is first.”

Old Black Bear Brewing Company is expected to open next month, bringing 45 new jobs. According to the city, the company’s renovation and revitalization of the location at 309 S. Marion Street was a $2 million capital investment and is expected to generate $2.5 million in taxable sales annually.

The council introduced two ordinances Monday concerning appropriations to the Boys and Girls Clubs of North Alabama and the Mental Health Center of North Central Alabama. The council will vote on the ordinances at its meeting Monday, July 24.

If approved, the Boys and Girls Club in Athens will receive $120,000 to be used in the building of a new educational facility at its location on Washington Street. The Mental Health Center of North Central Alabama would receive $480,000 to be used for the construction of additional space at the center that would benefit teens.

The appropriations would be funded from alcohol review money.

The Council also approved the following items of business Monday.

• Resolution for purchase of diagnostic equipment for the Street Department at a cost not to exceed $10,000.

• Resolution to approve travel/education expenses for personnel of the Information Technology Department.

• Resolution to approve emergency repairs to the home at 2004 South Hine Street, regarding the back up of a sanitary sewer line.

• Resolution to approve an agreement with Krebs Engineering, Inc. to perform consulting services, including the development of a scope of work to conduct sludge dredging from the WWTP west lagoon and to oversee those services.

The next Athens City Council meeting is 4 p.m. Monday, July 24, at Athens City Hall.