Ambassador Hotel total taxpayer subsidy package

Ambassador Hotel total taxpayer subsidy package

The Ambassador Hotel in Wichita is receiving much more taxpayer subsidy than the guest tax rebate that is the subject of the February 28th election. It’s important to be aware of the total subsidy package, as taxpayers across the city, state of Kansas, and even across the entire country are providing a large subsidy program to the Ambassador Hotel that is not affected by the February 28th election:

• $3,325,000 in tax increment financing. This diverts money from services like police, fire, and schools to provide benefits to the developers, in this case parking for the hotel.
• $4,245,000 in city funding under the capital improvement plan (CIP), to build parking for the hotel.
• $3,800,000 in tax credits from the State of Kansas. Taxpayers across Kansas have to make up this missing revenue.
• $3,500,000 in tax credits from the U.S. government. Taxpayers across the country have to make up this missing revenue.
• $537,075 in sales tax exemptions on purchases during the construction and furnishing of the hotel. That’s missing revenue that other Kansas taxpayers have to make up.
• $60,000 per year in community improvement district (CID) sales tax. The hotel charges an extra two cents per dollar sales tax, which the state returns to the hotel.
• $134,000 per year in guest taxes. A special city charter ordinance would allow the hotel to keep 75 percent of its guest tax, instead of that revenue going to the city’s convention and tourism fund. This is the ordinance that is the subject of the February 28th election, and is the only program that will not take effect if the charter ordinance fails to pass.
• $127,499 per year (estimated) in rental revenue to the developers from a sweetheart lease deal.

In addition, this building is benefiting from Wichita’s facade improvement program, which provides special assessment financing that is repaid.

All told, this project will receive $15,407,075 in taxpayer funds to get started, and then several hundred thousand per year for the first five years, with smaller amounts for 22 years.

The February 28th election affects only the guest tax rebate, estimated by the city to be worth $134,000 per year. Your No vote stops this program from taking effect. But all other programs are not affected.

A information sheet with more detail is available by clicking on Ambassador Hotel Information Sheet.

Tax Fairness for All Wichitans
WichitaFairness@gmail.com, 316-708-1837. Website at dtwichita.com.

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