Hotel-Motel Tax Advance to GO Cedar Rapids
On August 21, 2018, GO Cedar Rapids Board of Directors provided an update on preliminary newbo evolve festival financial results. This news included a financial shortfall resulting in a loss of approximately $2.3 million.
While GO Cedar Rapids is a separate entity, the City of Cedar Rapids has historically provided funding from hotel/motel taxes to the organization in order to promote tourism and bring conventions and events to our community.
Based on a request from GO Cedar Rapids, Cedar Rapids City Council approved advancing $500,000 in hotel/motel tax revenue to GO Cedar Rapids for the newbo evolve event. The GO Cedar Rapids organization was obligated to repay this advance, and safeguards were put in place to ensure the City would be able to recoup the funds. If the promissory note is not paid back by September 1, 2018, all future hotel/motel funding the City was to provide GO Cedar Rapids will be applied to the promissory note until the advance is fully paid back.
The GO Cedar Rapids hotel/motel tax application was approved for $500,000 per fiscal year from FY19 to FY21. This amount was incorrectly reported by the Gazette as $1.25 M per year.