At Tuesday night’s Batesville City Council meeting, Crystal Johnson, CEO of the Batesville Area Chamber of Commerce, described a troubling “hotel crisis” as lodging tax collections decline. The closure of a longtime hotel and unpaid taxes by the Super 8 have compounded the problem, leaving the city struggling to meet the demand for overnight accommodations.
The city’s Advertising and Promotions (A&P) tax revenue—collected from lodging businesses—has seen fluctuations since its implementation in 2017, with $182,000 collected so far in 2024, down from 2023’s $224,000. Johnson noted that the transformation of the former Ramada Inn into apartments exempts it from A&P taxes, further impacting revenue. Efforts are underway to address delinquent taxes from the Super 8.
In addition, Johnson shared that the A&P Commission is exploring recruitment strategies and continues to see strong returns on advertising dollars, with $106.22 generated per $1 spent on marketing.
Housing Shortages: A Growing Concern
The city is also grappling with a housing crisis, with a shortage of 1,000 rental units and 1,000 homes. A recent assessment by Bowen National Research revealed the following:
- Many workers commute over 50 miles, but nearly half would relocate if housing were available.
- Batesville’s growing job market, adding nearly 3,000 jobs since 2014, has increased demand for housing.
- High occupancy rates and waitlists for rental units underscore a significant need for residential development.
- Cost-burdened households and unaffordable rents further highlight challenges for residents in the area.
Several housing-related rezoning requests were approved at the council meeting, including plans for multi-family housing at the former Independence Inn/Powell motel campus and other medium-density residential projects.
City Council Takes Action on Multiple Fronts
Other highlights from the council meeting include:
- The appointment of Jessica Davis to fill the unexpired term of retiring City Clerk/Treasurer Denise Johnston.
- Approval of $46,805 in expenditures for police department improvements, including digital investigative tools and license plate readers.
- Acceptance of a $2.1 million bid for water and sewer installations at an industrial site to attract future development.
- Plans for a $159,977 splash pad at Riverside Park, bypassing competitive bidding for a specialized contractor.
- Adoption of the 2025 city budget, which includes salaries for elected officials.
The council also recognized outgoing Alderman Chris Poole for his 14 years of service and discussed potential updates to animal cruelty laws concerning tethered dogs in moving vehicles.
Looking Ahead
With ongoing investments in economic development, Batesville is preparing for a 2025 focus on housing, wages, and community growth. Despite these challenges, the city’s leadership remains committed to addressing its residents’ needs and fostering a thriving local economy.
