Woodbury is thinking of imposing a new tax on hotel stays in order to pay for improvements to its indoor Central Park.
In a memo to the City Council, staffers note that 110 cities in Minnesota collect such a tax, 26 of them in the metro area. Most levy 3 percent, but not all; Bloomington's lodging tax is 7 percent, St. Paul has a 6 percent tax and Minneapolis 5.6 percent.
Officials in Woodbury, which is soon to have nine hotels, long have been itching to upgrade Central Park, which is attached to a county library and YMCA.
Public facilities such as the park and athletic fields "play a significant role in attracting out-of-town patrons, who support our hotels, restaurants, and other businesses," the staff memo says.
The topic is coming up in the context of the legislative session, with staffers noting that special legislation may be needed to allow lodging tax dollars to pay for capital improvements in a park.
The lodging tax generally is aimed at convention and visitors bureau needs, according to the memo, but "as we consider an update to this facility, having Central Park serve as a visitor and resident welcoming center is moving to the forefront of our various considerations."
The last study of possible tax proceeds took place at a time with the city had 627 hotel rooms, which were estimated to spin off between $321,300 and $422,100 in room tax proceeds. The city will move up to 1,026 rooms after a new Courtyard by Marriott opens.
David Peterson