Savannah Council approves 2% hotel-motel tax increase. Here's where the money will go.

Will Peebles, Savannah Morning News
·3 min read

More tourist tax money will be funneled into Savannah's tourism-based amenities following Savannah City Council's approval of the long sought 2% hotel-motel tax increase at their Thursday meeting.

Council voted 6-3 to pass the tax, which will send $37 million to the redevelopment of the Historic Waterworks Building and trails and sidewalks connecting westside neighborhoods; $30 million towards the redevelopment and renovation of River Street and the waterfront, and $10 million to the Tide-to-Town trail network, the biggest projects on the proposed list.

A historic marker in the bricks along River Street is worn and barely readable.
A historic marker in the bricks along River Street is worn and barely readable.

Another $8.5 million dollars will be split amongst other tourism-related products on the project list, which include museum development; a new water-access facility on Savannah's southside; wayfinding signage; and West Bay Street gateway enhancements.

The council members who voted against the measure were 1st District Alderwoman Bernetta Lanier, a champion of the redevelopment of the Waterworks building, and both at-large alderwomen, Kesha Gibson-Carter and Alicia Miller Blakely.

Where will the money go?

Savannah now joins more than 90 cities and counties in Georgia, including Atlanta, Vidalia, Dahlonega, Dublin and Macon-Bibb County, that have an 8% hotel-motel tax. Tybee Island has a 7% hotel-motel tax. In 2021, Thunderbolt also passed a hotel-motel tax.

Not all the money from the increase will go into the city's coffers. A resolution crafted by Savannah City Council in February 2021 refined how revenues generated by the hotel-motel tax will be distributed under the new 8% tax, with 37.5% of collected monies going to the City of Savannah's general fund, 33.8% going to Visit Savannah and 14% going to the Savannah Convention Center.

In terms of project priority, River Street and Rousakis Plaza will be first. The $30 million from the hotel-motel funds will go towards a "deep cleaning" of the area, as well as "cosmetic uplift," Tourism Leadership Council President Michael Owens told Savannah Morning News in March. Mayor Van Johnson added improving infrastructure on River Street was a priority, especially in regards to lighting.

Water Works conceptual plan
Water Works conceptual plan

The project receiving the most money from the city's project list for hotel-motel tax revenues is the Historic Waterworks Building and the development of trails and sidewalks connecting the westside to downtown. Currently, there is no uninterrupted sidewalk path to the arena from the Historic District, and $17 million of hotel-motel funds will be used to remedy that shortcoming.

The other $20 million will go towards the reimagining and redevelopment of the Waterworks Pump House. Formerly the city's first pump house, used to increase water pressure in Savannah's pipes, the space has been used as a storage space for street sweepers and refuse containers for the last 40 years.

The city is considering multi-purpose uses for the building, including a farmers market, a cafeteria, a workforce training center and a business space for startups and entrepreneurs.

More: City Talk: Water works restoration should embrace history, future

This article originally appeared on Savannah Morning News: Savannah City Council passes 2% Hotel-Motel Tax increase