Park City adopts 5% hotel-motel tax

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Updated: April 4, 2012 1:50AM

The Park City City Council adopted a 5 percent hotel and motel tax Thursday night, although they currently don’t have any such facilities.

Ald. Maria Pantoja had suggested the idea at the previous council meeting. She explained that while the city of 7,000, sandwiched between the neighboring communities of Waukegan and Gurnee may not have such facilities now, they could have at some point should the state locate a gaming casino in Park City.

Council members agreed they should be prepared for such an eventually, and quickly adopted the ordinance that they said would be in the best interests of the city.

The occupancy tax, payable on the gross rental by the room occupier, is equal to that of Gurnee’s tax rate. The charge would be clearly identified upon the bill at checkout, according to City Attorney Peter Karlovics, who drafted the ordinance.

Mayor Steve Pannell also recommended, and the council agreed, to retain the financial consultant Gruen Gruen + Associates to help the city assess the fiscal impact that a gaming casino might have on Park City and its neighbors.

Pannell said a financial impact study on the effects of hosting a casino, as is currently being proposed, is essential in measuring budgetary impacts upon the city’s public safety and public works requirements, as well as on new infrastructure such as sewers, water and roads.

The mayor explained that payment for the consulting services is contingent upon Park City being awarded a future state gaming license. He said no work would begin until that time.

City Engineer Marek Klonowski said progress continues on upgrading the Greenleaf business corridor on the west side of the city, and he urged approval of an ordinance accepting two temporary construction and grading easements to build sidewalks.

The property is located along Greenleaf Street, where the Traffic Court is located. Aldermen quickly approved the request and work is expected to get underway this spring.