Q. What is a General Obligation Bond?

A. General Obligation bonds are debt instruments issued by states and city governments to finance considerable capital improvements. These improvements can include new city buildings, repairing roads, or constructing public facilities. Bonds are sold to investors, and the proceeds are used to pay for these major capital investments that have a public purpose.

 

Q. Why are we only voting on the convention center portion of the project?

A. The boutique hotel will be privately funded, and the parking structure can be financed with city funding. Voter approval is not required for those facilities. However, the convention center does require voter approval, per state statutes. Without funding for the convention center, the hotel and parking structure would be unattainable. 

 

Q. Will this bond program raise taxes?

A. The bond program is designed to be funded by Sales Tax and Fees. This program will not directly raise property taxes, as the funds are generated from other sources. If the hotel revenues, sales tax, user fees, and Hotel Occupancy Tax all underperform, the city is authorized to levy a property tax to cover the shortfall. Four funding sources would be utilized before the city would consider raising the property taxes. 

 

Q. How were the Convention Center bond projects selected?

A. Several meetings with the Alliance Group, Texas Motor Speedway, and other large companies with offices here determined that high-end accommodations for hotel rooms, meeting space, and hospitality venues underserved the area.

 

Q. What happened with the Peabody Hotel?

A. In 2017, the City of Roanoke began a partnership with the Peabody Hotel developer to construct a hotel, meeting space, restaurants, and spa. Unfortunately, the global health pandemic of 2020 and its financial impacts on the developer created an inevitable dissolution of the partnership, and the approved plan could no longer move forward. Now, the need is more significant than ever to provide high-quality hospitality, meeting and leisure spaces, and ample parking to support our growing area and demand for quality and uniqueness. 

 

Q. How will the City ensure accountability for approved bond projects, including project budgets?

A. Our City values transparency and accountability in executing approved bond projects. The city's website will provide regular updates on project progress, timelines, and bond funds use, keeping you well-informed. 
 

Q. Can bond funds be used for any other purpose?

A. No. Texas law requires that voter-approved bond proceeds be used only for projects described in the ballot questions.

 

Q. Who will manage and operate the convention center? 

A. While the City of Roanoke will own the convention center, the city will lease it out, and it will be operated/managed privately. The City will select a quality vendor based on their knowledge and experience in operating similar-sized convention centers.
 

Q. Why is there no tax increase on a $62 Million Bond? 

A. Under the proposed structure, property taxes will only be required to repay the convention center bonds if hotel revenues, sales taxes and HOT taxes do not generate the required revenue.

 

Q. I thought a parking structure was already planned for Oak Street.  

A. The convention center project includes a parking structure; however, it is separate from the planned parking garage that will replace the surface lot at 377 and Main Street. 

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Q. How will tax dollars be affected for someone staying at the hotel? 

A. Someone staying at the proposed hotel will not pay any more taxes than any other hotel in Roanoke.

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Q. How will the center affect businesses on Oak Street? 

A. We believe that it will increase foot traffic due to events, conferences, and visitors to the hotel.  

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Q. How many floors will the hotel and convention center have? 

A. Current conceptual designs have five floors for the hotel space.

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Q. How many rooms will the hotel have? 

A. Current conceptual designs have approximately 200 rooms.

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Q. What amenities will the hotel have? 

A. Market, retail, restaurant, fitness area, exterior pool.  

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Q. What amenities will the convention center have and will be considered a part of the bond? 

A. Please see the site map on the website:  - Meeting areas, ballroom/convention, restaurant, front and back of the house areas for staff.

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Q. How much annual revenue will the hotel/convention center bring to the city? 

A. Click to watch Funding Video.

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Q. How much money will the city pay annually to bring down the bond debt?  

A. The debt service on the convention center related debt is projected to be approximately $3.6 million per year. It is anticipated that these payments will be made from net income from hotel operations (after hotel related debt service), and any other funds needed would come from the 4A Economic Development Corporation.

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Q. Has there been discussions on who may own the hotel/convention center?

A. The city set up a not-for-profit, likely an LGC - Local government corporation 

 

Q. When does the city plan on calling for an election on the venue tax that was mentioned? 

A. Further discussions about the potential venue tax would happen after the conclusion of the bond election. A better timeline could be provided should the decision be made to implement a venue tax.