GALION, Ohio — With the construction of a 70-bed hotel in Galion on the horizon, city council members considered a resolution that would make the city more competitive for attracting hotels in the future.
The resolution passed its first reading Tuesday night unanimously.
“It really, quite honestly, is designed to lower a tax that’s not competitive. And hopefully improve the operating climate for that hotel,” Mayor Tom O’Leary said.
The resolution seeks to repeal Galion’s current bed tax structure, which charges hotel guests a 6 percent tax. The tax is divided into two allocations; 3 percent of the tax collected goes entirely into Galion’s general fund. The other 3 percent is allocated both for the city’s general fund and a visitor’s bureau on a 50/50 ratio.
Galion does not currently have a visitor’s bureau. Therefore, the resolution will cut the additional 3 percent tax.
“I’m not an expert on what their (the hotel’s) margin is, but if you could affect their margin positively by 3 percent, it’s hard for me to understand why we wouldn’t want to send that ‘open for business’ signal out to travelers, out to investors,” O’Leary said.
Present at Tuesday’s city council meeting was Patricia Ratliff, executive director of the Bucyrus Tourism and Visitor’s Bureau. She presented to the council a list of approvals from different agencies in surrounding counties, including Ohio Association of Convention and Visitor’s Bureau.
Ratliff voiced her support of city council repealing the current bed tax. She said doing so would make Galion more competitive in the hotel market.
The $5.5 million Sleep Inn and Mainstay Suites project will consist of 70 beds and construction is expected to begin soon.
In related news, the Central Hotel has resumed construction on 12 remaining rooms. Law Director Thomas Palmer said the city can expect to start leasing to tenants beginning in April.
