Kent County voters go to the polls next week to decide the fate of a proposed hotel tax increase that would affect a new concert amphitheater and soccer stadium. The Local Spins Q&A and more.
Well Under Way: Development of the Acrisure Amphitheater began downtown earlier this year. (Photo/Chelsea Whitaker)
Grand Rapids recently broke ground on a much-buzzed-about, 12,000-capacity outdoor amphitheater that’s set to light up downtown with high-profile concerts starting in 2026.
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While the $184 million project will proceed regardless of the outcome of countywide voting on a proposed Kent County hotel tax increase next week, a portion of revenues from that 60 percent tax hike imposed on visitors to the city would support certain enhancements to the riverfront venue.
More critically for soccer proponents, funds generated by the hotel tax increase are essential to clear the way for construction of a new 8,500-seat soccer stadium being eyed for property north of the amphitheater west of the Grand River.
But there is opposition, even though the tax increase only affects those who rent hotel rooms in Kent County. The TGIF Victory Fund, supported by apartment developer Dan Hibma, is campaigning against the proposal. The political action committee declined to elaborate to MLive.com about reasons for its opposition to the hotel tax increase. Read more at MLive.com here.
To give voters and Local Spins readers a clearer picture of what this Aug. 6 ballot proposal would mean for those projects and the community at large, we asked the Destination Kent Committee (which is promoting the visitor tax increase) a series of detailed questions about the “Sports and Entertainment Facilities Proposal.”
The Future? Artist’s rendering of the Acrisure Amphitheater. (Grand Action)
And with continuing concerns that range from parking availability to the impact of these significant projects on the city, Local Spins will continue to explore issues surrounding this amphitheater in coming months. View earlier Local Spins stories about the amphitheater online here.
Answers to today’s questions were provided by Jason Manshum, representing the Destination Kent Committee and senior counsel for SeyferthPR. Scroll down for exact wording of the Aug. 6 ballot proposal.
Local Spins: Precisely, how much of an increase is called for by the visitor/hotel tax ballot proposal?
DKC: The Lodging Proposal is an increase in Kent County’s hotel/motel tax from 5 percent to 8 percent. The average cost per night for a hotel/motel room in Kent County is expected to increase by $3.72 from this additional 3 percent.
Local Spins: How much revenue currently is produced by Kent County’s hotel tax annually, and what’s the projection for how much more would be generated if this increase is approved?
DKC: Last year, room revenue through the Kent County Lodging Excise Tax was a record $259 million from a record-breaking 2.17 million rooms sold. Excise tax collections were nearly $13 million. There is a projected $120 million gap to complete the amphitheater and soccer stadium. To generate enough annual revenue to bond for $120 million, Kent County needs the authority to move its Lodging Tax from 5 percent to 8 percent. Revenue from the current 5 percent county lodging tax is $13 million. The additional 3 percent would add another $8 million, totaling $21 million in revenue if approved.
Local Spins: Break down where exactly this additional revenue will be used — how much for the soccer stadium, how much for the Acrisure Amphitheater? And what part of the amphitheater project will these revenues finance?
DKC: I cannot speak to how the Kent County Commission will allocate the funds if they are approved by voters. Of the $120 million gap, approximately $20 million is needed for the amphitheater and approximately $100 million is needed for the stadium in financing for the projects. The additional $8 million in revenue will be used to support annual debt service payments for an amount to be determined.
Another View: A rendering of the amphitheater at street level. (Grand Action)
Local Spins: Who will actually pay this hotel tax and how is it implemented?
DKC: This is not a millage and will not impact property taxes. This is a tax applied to hotel or motel stays in Kent County that are less than 30 consecutive days. A recent study by Longwoods shows that 90 percent of the individuals whom this applies to are visiting from outside Kent County, making it the tax that (Kent County) residents don’t pay.
Local Spins: What happens if this proposal is defeated? We’ve previously been informed that the amphitheater construction will continue regardless, but some enhancements won’t be made.
DKC: Because this tax is such an important part of the soccer stadium project funding, it would be difficult to proceed without it. It would not move forward with only private funding. Therefore, if the proposal is not approved by voters, we would have to revisit the soccer stadium project to figure out a path forward. The scope of the amphitheater project would have to be reduced if not approved by voters.
Local Spins: If it passes, when does this tax first get implemented? How many hotels/motels in Kent County will be affected by this tax? And how many visitors annually?
DKC: If passed by voters, the Kent County Board of Commissioners will vote on implementation details.
In 2023, more than 2.17 million hotel rooms were sold in Kent County, a record number. The county collects from 119 lodging facilities, totaling 10,400 rooms. They also collect a large amount of tax revenue from Airbnb operators. Total number of visitors is 9.1 million annually, and approximately 6 million stay in our lodging facilities.
Local Spins: How important is development of the Acrisure Amphitheater to the vitality, economic prosperity and entertainment offerings of downtown Grand Rapids?
DKC: It’s extremely important. Imagine West Michigan without the Van Andel Arena, DeVos Place Convention Center and DeVos Performance Hall. These catalytic investments have been economic drivers for the County, now thriving with a great mix of restaurants, retail, office space and residences. It is a place people want to visit and it is a force for retention and attraction of residents and businesses. Investments in the Arena, Convention Center, and Performance Hall have led to over $11 billion in additional investment in new hotels, residences, office buildings, entertainment venues and small businesses. These facilities have a combined annual economic impact of more than $82 million, supporting 1,265 jobs.
Tourism is the backbone for our local economy. Destination assets like the amphitheater will help keep West Michigan on the map and draw people from all over to our great county. It will bring in artists and shows from all across the globe, serving only to enhance our already vibrant arts and entertainment industry. In addition, the amphitheater will make it easier for local families to stay closer to home for family trips – especially as we juggle costs with the rate of inflation. We will no longer have to travel to far-away destinations to enjoy outdoor concerts for artists who play similar sized venues. Finally, the economic impact of the amphitheater will be substantial. It is expected to create 465 new jobs and $388 million in new net economic impact for Kent County.
Jason Manshum (Courtesy Photo)
Local Spins: What artists would you personally like to see perform at the new venue?
Jason Manshum: In all honesty, it would be great to see some of my favorite legacy artists who are no longer with us: Tom Petty and the Heartbreakers, Prince, and so many more. But fortunately, the music scene is still alive and well with many amazing touring acts. Being a native Michigander, I’m always biased toward Bob Seger. And being an undergrad during the burgeoning ‘90s music scene in Grand Rapids, I dream about bands like Troll for Trout, The Verve Pipe and Domestic Problems hitting the stage to a sold-out crowd. It would be extraordinary to see The Rolling Stones, U2, Sting, Dave Matthews Band, Chris Stapleton and so many more!
Local Spins: Describe the Destination Kent Committee and your title with this group. What is this group doing specifically to promote the hotel tax proposal and where is the funding coming from to finance this advertising/promotional campaign?
Jason Manshum: I am a consultant with the Destination Kent Committee, whose vision is to increase the quality of life and economic opportunity for Kent County residents and support Kent County’s next big leap. The Committee formed in 2024 with a focus on increasing awareness of the benefits of the lodging proposal and advocate for its successful passage on Aug. 6. Committee members include Grand Rapids Mayor Rosalynn Bliss, Kara Wood of Grand Action 2.0, Joshua Lunger from the Grand Rapids Chamber, John Helmholdt of SeyferthPR, Bill Jackson of McAlvey Merchant & Associates, and Bob Herr as treasurer. To learn more, visit YesDestinationKent.org. (Editor’s Note: As per financing the campaign, the committee asserts on its website that it’s “paid for with regulated funds by the Destination Kent Committee.”)
One final point of consideration: The amphitheater and stadium will be community owned and operated by the Grand Rapids-Kent County Convention/Arena Authority (CAA). The CAA is a public authority made up of seven publicly appointed board members.
THE AUG. 6 SPORTS AND ENTERTAINMENT FACILITIES PROPOSAL
Shall Kent County increase the rate at which the excise tax is levied on all persons engaged in the business of providing rooms for lodging purposes to guests staying less than 30 consecutive days under public act 263 of 1974 as amended from 5% to 8% of the total charge for accommodations to be used for allowable uses including financing of the acquisition, construction, improvement, enlargement, repair, or maintenance of stadiums, arenas, sports complexes, and aquariums starting January 1, 2025 and terminating on the same day as the county ordinance enacted under Public Act 263 of 1974 as amended?
PHOTO GALLERY: Acrisure Amphitheater Construction (201 Market Ave. SW)
Photos by Chelsea Whitaker
