Tax Hike for Stadium Bonds

The Birmingham City Council increased the lodging tax rate on Tuesday to support bond financing of a minor league ballpark and related facilities.

The lodging tax will increase by 3.5 cents to 6.5 cents

In approving the increase, however, the City Council also said that if bonds have not been issued for the stadium and related facilities in the downtown Birmingham area by Sept. 30, 2011, the lodging tax will revert to its former rate.

It is not clear yet how much debt will be sold for the project, which is expected to include a museum. The ballpark itself could cost nearly $50 million, excluding the cost of land, according to published reports.

City officials are negotiating with a local minor league team to move to the facility. The team is currently playing in a nearby city.

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