Mineral Wells Index, Mineral Wells, TX

Top Stories

February 6, 2014

Funding the Baker

Mayor and City Manager discuss the City’s plan to finance its portion of the Baker Hotel renovation and how it won’t raise taxes

By CLINT FOSTER

As the Index has reported, Mineral Wells is currently in the thick of a effort to kick-start an unprecedented effort to revive the city’s most iconic and historic structure: the Baker Hotel.

Spearheaded by Southlake businessman Laird Fairchild of Hunter Chase Capital Partners, the Baker Hotel Development team has been creative in gathering the necessary financing for this $56-million project – that has been six years in the making – from a variety of sources. A whopping 84 percent of the budget is made up of federal and state incentive capital in the form of federal and state historic tax credits, federal new market tax credits and an Environmental Protection Agency grant for lead and asbestos abatement, just to name a few.

The Baker Development team has successfully secured all but $4 million of the project’s budget: a sum the City of Mineral Wells has obliged to cover by means of a 4B Economic Development Sales Tax. The City plans to establish what’s called a “Development Corporation” that can issue a $4 million bond, which the City can then pay off over a period of time with a portion of sales tax revenue. But the beauty of this plan, City Manager Lance Howerton explained, is that it won’t cost the citizens of Mineral Wells an extra dime.

“We’re not suggesting an increase in the sales tax rate, but reallocating the sales tax,” he said. “Essentially what you’re looking at is whatever is collected against the sales tax goes to pay those bonds off.

“So your property tax is not used to pay off these bonds.

“You’re not ‘pledging’ that, as they say. It’s a big difference.”

The City of Mineral Wells currently levies a 1.5-percent sales tax and has done so since 1989.

“Last year, this generated $3.7 million in revenue – all of which went to the City’s general fund – from $250 million in taxable transactions. City officials are suggesting merely pulling 1/8th of a cent out of the 1.5 cents of regular sales tax and putting that money toward paying off the investors that purchase the $4 million dollar bond to finance the Baker’s revitalization.

Text Only
Top Stories
  • MISSION MW!

    Mineral Wells  — Henry Ford is quoted as saying that, “Coming together is a beginning; keeping together is progress; working together is success.”

    April 17, 2014

  • wheelchair1.jpg Gift of a chair improves a life

    On most days, Richard Calandini's dog Cricket likes to ride with him to get the mail from the mailbox.

    April 17, 2014 1 Photo

  • TxDOT addressing traffic at 1821/180 intersection

    Ever since Wal-Mart Supercenter came to town, things have never been the same.

    April 17, 2014

  • Jenny Phil and Babe.jpg Jr. History Club meets

    Junior History Club of Mineral Wells met at Holiday Hills Country Club for their monthly meeting.

    April 16, 2014 1 Photo

  • The Marshes.jpg Marshes onboard with Baker comeback

    Ever since the Baker Hotel's final closing, the center of “main and main,” has been rotting out.

    April 16, 2014 1 Photo

  • hazmat3.jpg Truck rollover dumps flammable liquids

    A tractor-trailer rollover on southbound U.S. Highway 281 sent the truck's driver to the hospital and resulted in a spill of more than 5,200 gallons of combustible petroleum distillates into a ditch.

    April 16, 2014 1 Photo

  • library2.jpg From a Winter Victorian Evening to a Spring BOOKNANZA!

    In December, the Friends of the Boyce Ditto Library (FOL) invited members of various groups who had supported the organization, such as the library advisory board, the library staff and the Brazos Foundation, to a dinner held in the library.

    April 15, 2014 1 Photo

  • Balloons.jpg Despite high winds, Go Blue! balloon release a big GO!

    April is National Child Abuse prevention month, and all month long Palo Pinto County Child Welfare Board, PPC Children's Alliance Center and CASA along with other organizations, have banded together in an effort to promote awareness on the largest scale possible.

    April 15, 2014 1 Photo

  • BURN BAN.jpg Commissioners reinstate burn ban

    Monday morning, Palo Pinto County Commissioners approved a motion to reinstate the countywide burn ban, which had been lifted in late March.

    April 15, 2014 1 Photo

  • Joe Erwin.jpg It’s All in the Family

    Any organization is a reflection of its employees.

    April 14, 2014 1 Photo

Featured Ads
SmugMug


Click on a photo to see our SmugMug photos

Seasonal Content
AP Video
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.