But the Cooperative Economic Development Agreement approved 12 years ago will offset losses to the township and benefit the township and the city by increasing tax revenue, area leaders said.
“If we lose anything it will be very little. But without CEDA it would have been all together different,” said Springfield Twp. Fiscal Officer Herb Greer.
Under CEDA, the township will receive 12.5 percent of the city’s 2 percent income tax that will be paid by hotel workers currently not living in Springfield.
CEDA also requires the bed tax collected from the hotel to be split three ways: the township and the city each will get 37.5 percent, while the Clark County Convention and Visitor’s Bureau will receive 25 percent, said Tom Franzen, economic development administrator for the city of Springfield.
The Quality Inn paid about $79,600 in lodging taxes last year, which was split equally between the CCCVB and the township, CCCVB Marketing Director Chris Schutte said.
Anuraag Mullick, who has owned the Quality Inn for three years, said he was forced to annex the hotel into the city to save on water and sewer costs.
“The water and sewer bills are absolutely huge ... I pay about $50,000 a year and that’s not fair,” Mullick said. “The hotel next door is paying 50 percent less than what I’m paying because it is not in the county.”
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