The Town of Basalt’s plan to share sales tax revenue would not cover a more than $10 million dollar gap faced by the developer of Willits Town Center. Basalt Town Council has given initial approval to share a maximum of $5 million in sales taxes.
Basalt would continue to collect the same percentage of sales tax. Once that total reaches approximately $1.35 million each year, the town would then set aside a slice of the following taxes collected each year for developer Mariner Real Estate Management. The arrangement is restricted to sales taxes collected in Willits Town Center but would not include the Element by Westin hotel. It and would finish after fifteen years, regardless of whether it meets the $5 million threshold. Sales taxes given to Mariner would normally go towards Basalt’s general fund.
Council members have also said so far they’re comfortable with Willits Town Center requiring certain tenants to charge up to 1% more on sales to support the development.That arrangement could last for two decades at the most.
If Basalt approves those two funding proposals, the total could be restricted to a combined $10 million. A consulting firm hired by the town says it’s likely total will be $9.75 million. That means Mariner Real Estate Management must perform well enough to cover the rest of the gap, which could be more than $2 millions. Basalt Town Council will take up the issue again in mid January.