Savannah hotel-motel tax funds major projects as costs rise

SAVANNAH, Ga. (WTOC) - Thousands of visitors in Savannah over the next few days are doing more than celebrating St. Patrick’s Day — they’re also helping pay for major development projects.

The funding comes from Savannah’s hotel-motel tax, which is collected when visitors stay overnight in local hotels.

“When folks stay in hotels they are generating hotel motel tax, and at the end of the day that’s good for everybody,” said Joseph Marinelli, CEO & President, Visit Savannah.

$16.5 million collected since 2023

City leaders said Savannah has collected $16.5 million from the hotel-motel tax since 2023, when the current slate of projects was first identified.

But during a city council update, some aldermen raised concerns about project costs increasing — including the River Street redevelopment plan.

River Street redevelopment cost doubles

The River Street redevelopment is intended to make the roadway easier for everyone to walk down. However, since it was first proposed, its estimated cost has doubled from $30 million to $60 million.

Alderwoman Bernetta Lanier questioned the rising costs. City Manager Jay Melder responded that the projects are planned on a long timeline and are not expected to be paid for with “today’s money.”

“This tourism project development is going to be a source of revenue that city council is going to continue to look at. Just remember when we contemplated, these were the projects we thought we would take down in the first 20 years,” said Melder.

Water Works Building redevelopment moves forward

Council also discussed redevelopment of the Historic Water Works Building. The project was approved Thursday and passed unanimously.

Still, council members emphasized that any new use of the space should benefit residents in West Savannah — particularly those in District 1.

“That’s been the experience that we have seen but at this point we’re not going to allow it to get off track and end up being something else for someone else,” said Bernetta Lanier, District 1 Alderwoman.

Tide to Town trail draws support — and concerns about inclusion

The Tide to Town trail project also received attention. While council members expressed excitement about the concept, concerns were again raised about whether District 1 residents are being adequately included.

Mayor Pro Tem Estella Shabazz said the lack of inclusion was clear in the project mapping presented to council.

“I’m not gonna let this thing pass today, with the non-inclusion that’s so clear on this map,” said Shabazz.

What happens next

City leaders say redevelopment work is already underway on both the Bay Street redevelopment and the Water Works Building project.

As visitors pour into the Hostess City for St. Patrick’s celebrations, the city expects hotel-motel tax revenue to continue flowing — funding projects that leaders say will shape Savannah for years to come.