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BUDGET: The city will obligate itself to pay three annual sales tax grants and five annual property <br />tax grants. The grants function essentially as rebates so the city will not have to dip into existing <br />property tax revenues to pay them. Regarding the sales tax grants, the budget impact is difficult to <br />determine at this time. Hotels usually generate little in the way of sales taxes, but the company has <br />plans to include a bar in the development, so that will impact sales tax revenues in a way yet to be <br />determined. Of course, while hotel occupancy taxes are not strictly speaking a budgetary item <br />given the city's contract with the Lamar County Chamber of Commerce to manage such taxes, the <br />project, once open, should be a welcome new generator of HOT. <br />RECOMMENDATION: Motion to adopt a resolution approving a Chapter 380 economic <br />development agreement with Emerald Hospitality, LLC related to the development and <br />construction of a Home 2 Suites and hotel and event space and authorizing the Mayor to execute <br />same on behalf of the city. <br />