HomeMy WebLinkAboutA003 - Agreement between University and Memorial Union for payment in lieu of hotel/motel tax IOWA STATE UNIVERSITY Office of the Vice President
OF SCIENCE AND TECHNOLOGY for Business and Finance
125 Beardshear Hall
Ames,Iowa 50011-2038
515 294-6162
March 31, 1999 FAX 515 294-1621
Steve Schainker
City Manager
City of Ames
515 Clark Avenue
Ames, IA 50010
RE: HOTEL-MOTEL TAX/MEMORIAL UNION AGREEMENT
Dear Steve:
Enclosed is a copy of the agreement we have reached with the Iowa State University
Memorial Union regarding the payment in lieu of the proposed hotel-motel tax. The
language that is acceptable to the Memorial Union and their legal counsel permits the
Memorial Union to make the appropriate payments to the university. This is consistent
with the agreement and the terms of the addendum we had previously entered into with
the city regarding the proposed hotel-motel tax.
Assuming the agreement to procure the improvements and the addendum were
approved by the City Council at their last meeting, I would appreciate receiving a signed
copy of the actual agreement for our files.
I appreciate your and John Klaus' cooperation in completing these agreements in a
timely fashion.
Very truly yours,
Warren R. Madden
Vice President for
Business and Finance
cc: Blackwelder
Enclosures
005699
AGREEMENT BETWEEN
IOWA STATE UNIVERSITY
AND THE IOWA STATE MEMORIAL UNION
FOR PAYMENT IN LIEU OF
THE HOTEL/MOTEL TAX
THIS AGREEMENT;made and entered into effective this 20 day of A,rk . 1999 by and
between IOWA STATE UNIVERSITY(ISU)and the IOWA STATE MEMORIAL UNION,an Iowa non-profit
corporation(Memorial Union),
WITNESS THAT:
WHEREAS,the Memorial Union is by law exempt from the imposition of the hotel/motel tax as now
imposed or hereafter increased by the City;and,
WHEREAS,the proceeds of the City's hotel/motel tax are used to enhance recreation,convention,cultural
and entertainment facilities and for the promotion and encouragement of convention business,to the benefit of Iowa
State University as well as the City;and,
WHEREAS,to contribute toward said benefits for Iowa State University,the Memorial Union desires to
make a contribution in lieu of the said hotel/motel tax,its exemption from said tax notwithstanding;
NOW,THEREFORE,the parties hereto do agree as follows:
1. The Memorial Union shall make a monetary donation to ISU. The donation from room charges
from the Guest Rooms in the Memorial Union will be proportionate to the amount paid by other local hoteliers in
the City of Ames. The first such payment shall be made by the Memorial Union to ISU on the 31"day of October,
1999,based on the Memorial Union's receipts as aforesaid during the previous ninety days. The Memorial Union
shall make such payment to ISU at the conclusion of each ninety-day period thereafter.
2. This agreement shall be effective for a period of ten years,subject to the conditions set forth in
Paragraph three.
3. It is a condition precedent to the operation of this agreement that an election shall have occurred in
the City of Ames at which a majority of those voting on the question favored an increase in the rate of the City of
Ames hotel/motel tax from five percent to seven percent;and,that forty-five days prior notice of that revision has
been mailed to Iowa Director or Revenue and Finance;and,that the tax has been imposed on January 1,April 1,
July 1,or October 1 following that notification of the Iowa Director of Revenue and Finance.
IN WITNESS WHEREOF,the parties hereto have executed this agreement to be in effect as of the date
first above written.
IOWA STATE UNIVERSITY IOWA STATE MEMORIAL UNION
By: By:
arren R.Madden J s J.Huss
Vice President for Business& 011esident
Finance