New Albany City Council on June 21 amended an agreement with New Albany Hotel Associates LLC to include the new LLC name and to correct council legislation denoting the hotel company's share of local bed-tax revenue.

New Albany City Council on June 21 amended an agreement with New Albany Hotel Associates LLC to include the new LLC name and to correct council legislation denoting the hotel company's share of local bed-tax revenue.

Community development director Jennifer Chrysler said Hotel Development Services would build the hotel, the city's first. For the project, the company formed New Albany Hotel Associates, a separate limited-liability company.

The amendment also will allow New Albany Hotel Associates to receive 50 percent of the bed-tax revenue collected by the city to be used for promoting the hotel, according to Chrysler. Bed taxes can be charged on hotel rooms and are paid to municipalities for use in marketing campaigns and other attempts to attract visitors to an area.

The city anticipates the hotel company will receive 3 percent of the 6 percent typically collected, according to Chrysler.

Chrysler said the original legislation was written with a specific percentage of revenue going back to the hotel company rather than the "50 percent of what is collected" specified by the amendment. The original legislation could have allowed the hotel company to receive more than the 50 percent that was agreed upon.

Deputy community development director Kathryn Meyer said she expects the hotel project to break ground this year. The hotel will be built on Forest Drive, north of Smith's Mill Road.

"It will have 122 rooms and it will be 110,000 square feet," Chrysler said.

Hotel Development Services builds Marriott Courtyard hotels.

Chrysler said the company already has its building permit. She said the project has no local incentives, other than a potential sharing of bed-tax revenue.

In other business June 21, council approved a zoning change for the New Albany Presbyterian Church, which is building a 12,500-square-foot building at the corner of Johnstown and Harlem roads.

The zoning was not required for the church to build on the 11.7-acre lot, said New Albany Co. attorney Aaron Underhill. But Underhill said church members felt it would be better to rezone the property from residential and a comprehensive planned-unit development to one zoning of infill planned-unit development.

Council member Glyde Marsh said changing the zoning when not needed might set a bad precedent. The legislation was approved 4-0, with Steve Pleasnick, a member of the church's building committee, abstaining. Mayor Nancy Ferguson and Chris Wolfe were absent.

Council also voted 5-0 to approve a zoning change for 325 acres in the city center, which includes 224 properties not already zoned within a planned-unit development, to the recently passed urban center code designation.

Meyer said the code brings all the properties under one zoning classification, which provides more opportunities for development and brings nonconforming uses into compliance.

"It's less restrictive and more consistent," said council member Colleen Briscoe.