The Durham County Board of Commissioners voted Monday night to increase the hotel occupancy tax by 1 percent to fund cultural attractions in Durham, possibly including a downtown performing arts theater.
Revenues collected in the first two years after the implementation of the tax in March will go toward improvements to the Museum of Life and Science, the design of a performing arts theater with 3,000 to 5,000 seats, and other promotions of travel and tourism in Durham. A "Durham Cultural Plan" aimed at coordinating various arts and educational resources in Durham would also be developed.
After that time span, the first $1.4 million in additional tax revenue will go toward the construction of the proposed theater, and the next $500,000 will pay for the debt service on the Museum of Life and Science.
Several community leaders appeared at the meeting to lobby the board to adopt the tax. "We can fund and implement a Durham-wide cultural plan [with the additional tax revenue]," said Barker French, a member of the Board of Directors of the Durham Arts Council. He also emphasized the efficiency of the tax, which does not directly affect Durham residents.
Bill Kalkhof, President of Downtown Durham Inc., emphasized the fiscal benefits of the proposed theater, citing an estimate of $7.4 million to $8.4 million in new customer spending in the year after the theater is built. Kalkhof was one of two members of the Durham Convention and Visitors Bureau to speak in favor of the increase; the DCVB will be responsible for promoting travel and tourism to Durham, and will therefore receive a portion of the tax revenues.
The resolution passed unanimously, but commissioner Joe Bowser expressed reservations concerning future tax increases that would affect Durham residents, since the total cost of the theater could amount to twice as much as the $1.4 million raised by the increase.
"The concern is that if we approve this, and we start building this facility, will our taxes increase to continue financing the project?" said Bowser, the county's representative to the convention and visitors bureau.
Although Durham must still take several steps before the performing arts theater becomes a certainty, the commissioners approved the tax increase Monday because their authority to levy the tax, granted by the state General Assembly, expires Feb. 1.
IN OTHER BUSINESS: The board approved a request to rezone 135 acres of land in southeastern Durham County, transforming the property from a rural to a light industrial district. The property is completely surrounded by light industrial districts. The county planning staff had recommended denying this request because of environmental concerns and access difficulty, since the area contains some wetlands and no roads currently reach the property.
However, representatives for the owners argued that designating the property for industrial use would make it easier to sell, and that not granting the property the same status as the surrounding area violated the equal protection clause of the U.S. Constitution.
The board also voted to rezone certain areas near the intersection of N.C. 98 and Sherron Road for commercial and residential development, and approved a proposal to extend the Durham County Tax Department's hours to four days a week.
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