Will Decorah Jobs be part of the Rebound Hospitality negotiations?

Representatives of Decorah Jobs say they would be willing to give financial help to Rebound Hospitality to help build a $14 million hotel complex in Decorah—but they would need a share of the additional hotel/motel taxes the project would generate.

Rebound has asked for $1.5 million in property tax rebates or abatements and $500,000 in "other financial support."  Decorab Jobs representative Ben Grimstad says his group is willing to help Rebound Hospitality, although the $500,000 figure may be subject to negotiation.  But such help would come from Decorah hotel/motel tax revenues that the City of Decorah partially gives to Decorah Jobs.

Currently that amount is capped at $75,000 a year.  Half of the rest of hotel/motel taxes is given to the Winneshiek County Convention and Visitors Bureau for marketing purposes and the rest is given to help pay back the cost of building the Trout Run Trail.

Rebound Hospitality estimates that their 78-room hotel would bring in another $200,000 a year in hotel/motel tax revenues.  Grimstad says Decorah Jobs would need some of those additional revenues in order to pay back the $400,000 it is currently spending on its share of road construction costs in the Decorah Business Park—and the cost of whatever it gives to the Rebound Hospitality project.  "These amounts (of help to Rebound) are all negotiable," Grimstad stressed to city officials on Thursday.