Friday, June 4, 2004

Hotel-motel money for Falcon Field still in holding pattern



Peachtree City’s Airport Authority will have to wait a little longer to get its hotel-motel tax funds.

At its meeting Wednesday night, the authority tabled an agreement from the city’s Tourism Association that spells out how the hotel-motel tax money will be forwarded to the authority.

The association approved the agreement in a brief meeting that took place one hour before the airport authority meeting.

Authority chairwoman Cathy Nelmes said the airport board, which owns and operates Falcon Field, wanted its attorney to take a second look at the language in the agreement and make a few changes suggested by City Attorney Ted Meeker and authority attorney Doug Warner.

The authority uses the hotel-motel tax funds for capital improvements to Falcon Field. The authority’s hotel-motel payments were suspended in November after improprieties were found with the way the money was forwarded to the authority; the tourism association was chosen to handle that task because it has achieved federal nonprofit status.

In addition to approving the agreement for the airport authority, the Tourism Association approved the hotel/motel tax agreement with Peachtree City.

Authority member Murray Weed made motions for their approval, authority chairperson Steve Rapson seconded the motions and the authority members unanimously approved both motions.

The hotel/motel tax agreement with Peachtree City states that since the Tourism Association has obtained IRS 501(c) 6 status, the city can distribute 2/3 of the hotel/motel tax that the city currently receives in revenues to the tourism authority.

The hotel/motel tax provided to the association will be used to promote tourism, conventions and trade shows. The Tourism Association’s agreement with the Airport Authority states that the Airport Authority will receive 20 percent of the hotel/motel tax and that if the contract is to be terminated in the future, the Airport Authority would receive 120 days notice.

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