The city will again attempt to sway legislators to allow it to hold a citywide referendum for a one-cent sales tax that would pay off the remaining debt of what is now called the Royal Palace Theatre.
Council tonight approved its inclusion in its list of legislative goals for the coming year.
The matter was pulled from legislative discussion last year.
Mayor Emery Doughtie said during the meeting that even with HSV Entertainment’s payments and the possibility the limited liability corporation could buy the venue, “There is still some debt we would have to pay for. I think the one-cent sales tax would generate quite a bit of money for us. If we got the money it would specifically pay down the Roanoke Rapids Theatre.”
The mayor, at Councilman Ernest Bobbitt’s suggestion, said if the city had a chance to hold a referendum the tax would come with a termination date. “It’s basically putting the tax on ourselves. We have a quite a bit tourists. It would be difficult to add more taxes on the residents.”
Doughtie said following the meeting it is estimated the tax could bring in as much as $2 million a year.
In other matters tonight council:
Approved a transfer of $80,000 from the theater fund to capital fund to cover damage costs to Chaloner Recreation Center and other parks and recreation facilities in the wake of August flooding.
It also made a $300,000 budget amendment to pay for city infrastructure damaged during the flooding.
City Manager Joseph Scherer said that money, coupled with $200,000 the city has received from the state for tornado and hurricane damage should adequately cover the infrastructure repair while leaving leftover money. The city is also expecting another $35,000 from the state for the tornado and hurricane damage. About 75 percent of the flooding should be reimbursed by the state.