Leawood approves tax in anticipation of its first hotel

By John Shultz
Copyright 1999 Kansas City Star Co.
Reprinted with permission
Article date: July 21, 1999
 

Ground may not yet have been broken on Leawood's first hotel, but the city is already taking steps to ensure it can take advantage of all the financial benefits the proposed Hilton may bring.

With Leawood's mayor saying she expects the hotel to be developed sooner rather than later, the council Monday decided the city should draw up regulations to tax the hotel's future patrons.

"This is very new to Leawood," Mayor Peggy Dunn said. "It's something we've never had - the opportunity to have revenue outside of the city's population.

"I want us to be on top of this rather than behind the eight ball."

While Leawood is expecting the transient guest tax to be a good source of income, particularly with the hotel's proximity to Sprint, the funds must be earmarked for specific purposes such as economic development or infrastructure improvement.

Despite the mayor's requests, a number of council members were reluctant to support the proposal.

"If they started digging the hole today (for the hotel)," councilman Gary Bussing said, "we still wouldn't have a transient to tax for two years."

Councilman Adam Bold agreed the city still had ample time to work on the tax regulations.

Dunn said she was concerned the process of drawing up and approving the tax rule may take the city too long.

Councilman Lou Rasmussen's main concern, though, was that too much was being asked of city attorney Dick Wetzler. Wetzler is not a full-time city attorney but rather is paid on an as-needed basis.

Rasmussen's worry stems from the fact that the city is hoping to have selected a full-time city attorney come September.

Before the transient tax was added, Wetzler already had a number of assignments on his plate, including working on a massage therapy ordinance, a master plan amendment and recommendations on silt problems on Ironhorse golf course.

Wetzler said Tuesday, though, that he doesn't expect drafting a guest tax ordinance would take him much longer than 60 to 90 days.

The council eventually unanimously approved the action, after Dunn requested the city not drag its feet on composing the tax regulation.

"This is something I think the city's going to need," she said.

"I wouldn't have asked for it to be on the agenda if I didn't."

Reprinted with permission of The Kansas City Star
 

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