~ Springfield City Council Approves Ballot Measure for Hotel/Motel Tax Increase to Fund Convention and Event Center

In a unanimous decision, the Springfield City Council has approved a special ordinance to submit a ballot measure to voters on November 4, 2025. The measure proposes an increase of 3% to the current hotel/motel guest license tax in order to fund the construction of a regional convention and event center. This additional tax would be paid by overnight visitors staying in hotels, motels, tourist courts, and short-term rentals.

The timing of this proposal is crucial as it aligns with the opportunity to secure $30 million in state funding for the event center project. Currently, this funding is on hold pending stability of state revenues and demonstration of a local $30 million dollar match and project readiness. These funds were authorized through House Bill 7 and signed by Governor Mike Kehoe on June 30, emphasizing the need for Springfield to act swiftly and demonstrate community support and financial preparedness.

City Manager David Cameron stated, "The Governor and state leaders have made it clear that Springfield has a significant opportunity, but also a responsibility - to bring a credible match and be ready to act. We're at a pivotal moment. This ballot measure is a key component of an overall financing package and plan showing the state we're ready to deliver."

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The proposed ballot initiative was discussed at Tuesday's City Council meeting with the aim of finding a way to fund a new convention and event center that would strengthen Springfield's tourism economy. The new center would serve as a venue for large-scale conventions, sports tournaments, performances, and community events.

If approved by voters, the increase in hotel/motel license tax would result in Springfield moving from having the second-lowest rate among surrounding cities to being in the middle of the pack among peer cities. Even with this increase, Springfield's rate would still be lower than major cities like Memphis, Overland Park, St. Louis, and Kansas City.

Amanda Ohlensehlen, Director of Economic Vitality and Workforce Development, explained, "Springfield's proposed increase to 16.10% would still keep it competitive and below average compared to many regional destinations, while moving it closer to the mid-range of hotel tax rates in the region."

Mayor Jeff Schrag expressed his support for the proposal, stating, "This is an important step forward in determining how we invest in Springfield's future. A convention and event center would be a transformational project that drives economic growth, supports local jobs, and positions Springfield as a premier destination for regional and national events."

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The proposed 3% increase could be part of a broader financing vision that includes the half-cent portion of the Spring Forward SGF sales tax for transformative projects approved by voters in November 2024. The Citizen Advisory Board will hold its regular meeting on July 30 to discuss this further.

At a presentation on July 22, Ohlensehlen and city finance staff outlined a working funding model that would support long-term debt service and development costs. This model includes various elements such as the new hotel/motel guest tax increase (subject to voter approval), reallocation of existing hotel/motel tax revenues, state support authorized by Missouri House Bill 7, additional public-private partnerships under development, and future incentive and revenue strategies.

City Manager David Cameron emphasized that this is still a rough draft working funding model that considers new and existing resources in a responsible way. He also mentioned that further planning and coordination with consultants will continue in the months ahead.

The next steps include a public education and engagement campaign leading up to the November 4th election. This will ensure that voters have access to transparent and accurate information about the convention & event center project before considering the proposal.

In addition to the convention and event center itself, the City is also exploring the feasibility of a connected hotel, enhanced financing strategies, and incentives to maximize the economic return of the development. The City will continue to work with consultants in the coming months to further plan and coordinate these aspects of the project.

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