THE CHARACTER OF
FREDERICKSBURG
Will Fredericksburg lose its identity as a charming historic city?
It should actually do the opposite. The Kalahari Resort will create taxes to help pay for the services that are essential to our City’s enviable quality of life. It will bring more tourists to the City. It is not located anywhere near our historic district; it is located
across I-95 in an area designed to keep large development from encroaching on the historic nature of our City.
How will Kalahari affect me, as a citizen of Fredericksburg?
Unless you work there, it won’t affect your daily life, other than helping you avoid paying higher taxes.
Did the addition of Busch Gardens hurt the image of Colonial Williamsburg?
Certainly not! It helps attract more visitors to Colonial Williamsburg because it makes the region more of a family destination. The same will be true for the Kalahari Resort and Fredericksburg.
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WATER
Is there enough water for a resort and a waterpark?
Yes. The City does not have a water problem. In fact, it has plenty of unused capacity
for Kalahari and future economic development projects at Celebrate Virginia and throughout the City. Even after Kalahari is built, the City will still have 1.49 million gallons per day of available capacity.
Stafford has been on water restrictions. How can the City have enough water for Kalahari?
Stafford gets its water from reservoirs, not the Rappahannock River as the City does. Even during the drought last summer, the City had plenty of water because it took steps years ago to increase its capacity.
How much water will Kalahari use daily?
Kalahari will use in the range of 180,000—260,000 gallons of water daily. The company
has an excellent water recycling program already implemented in their other two properties. Guests in the hotel rooms will consume the most water, but Kalahari has a strong record of implementing many water and energy conservation measures.
Details of the resort’s projected daily water usage include: hotel rooms (47%); restaurants (19%); waterpark (19%); meeting space (6%); public space (6%); retail shops (3%).
How does the waterpark water usage compare to other kinds of businesses?
The waterpark will use the same amount of water daily as two average size hotels (120 rooms each), a 170-unit apartment complex, 125 single family homes or 380,000 square feet of retail space. As a comparison, the Spotsylvania Towne Center spans 1 million square feet.
If water restrictions are ever placed on the City, how will
Kalahari be affected?
Kalahari would be placed on the same water restrictions as all other hotels and retail
establishments in the City.
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EMPLOYMENT
Will the jobs qualify for benefits?
Kalahari will provide benefits to employees consistent with its other properties.
Won’t these service jobs attract more people who also demand more social services?
As part of their due diligence prior to choosing Fredericksburg above all of the other sites it
was considering, Kalahari investigated whether there was enough of a labor force already living within the region. Since these employees already live here now, they will not create any
additional demand on social services. While it is unfair to say that anyone working in a service job also creates demands on social services, it is certainly
true that as more jobs are available, there is less demand on social services.
What will the jobs pay?
As reported in the public meetings, representatives of Kalahari have said that they pay their employees highly competitive wages.
How many management positions will be available?
Approximately 60, averaging over $50,000—up to $120,000 per year.
Will local contractors and vendors have a chance to do business with Kalahari?
Yes, Kalahari has already hired some local firms to work on the planning of the
resort. They have a strong record of hiring local firms whenever possible.
So far, Kalahari has only talked about the jobs created once the resort opens. What about jobs during construction?
Kalahari will be one of the largest projects ever constructed in this region. It will create hundreds and hundreds of jobs. This will have a positive impact on our local economy.
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TRAFFIC
How will Kalahari affect local traffic congestion?
Most of our region’s traffic congestion occurs during rush hours. Kalahari’s traffic does not peak at any particular time of day, so it will not create surges in traffic during
rush hour.
Why can’t you put something at Celebrate Virginia that doesn’t create so much traffic?
Actually, Kalahari will create far less traffic than retail stores or offices.
Will there eventually be direct I-95 access to Celebrate Virginia and who will pay for it?
FAMPO, the region’s planning organization, and Silver Companies are working hard with local, state and federal governments to make direct access from I-95 to Celebrate
Virginia a reality.
Will there be a shuttle service between Celebrate Virginia and downtown?
Yes. It can be paid for by all the businesses at Celebrate Virginia. There are also federal funds available for such shuttles because it reduces traffic. Silver Companies
has been working cooperatively with the FRED Transit staff to explore these avenues so that a shuttle can be in place when it is needed.
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TOURISM
Will Kalahari visitors actually visit downtown Fredericksburg?
Kalahari will attract about 1 million visitors annually. Many will come for multi-day conventions and meetings and bring their spouses and families. Kalahari has
repeatedly committed to work with the local tourism industry to enhance their marketing
and promote packages for tours of our region’s attractions. Silver Companies is also committed to work with all the businesses at Celebrate Virginia to provide a convenient shuttle service downtown. The company recently donated $500,000 to the local arts community to assist its efforts to expand its cultural
offerings.
Does Kalahari provide any advantages for downtown
Fredericksburg?
Kalahari will bring a million additional guests to Fredericksburg annually. By coordinating
with local tourism officials, many of these new visitors can be expected to shop downtown, visit galleries, dine, take the train to Washington, and visit tourism attractions throughout the region.
As an example, Colonial Williamsburg has reaped huge benefits from its proximity to Busch Gardens, Water Country USA and Great Wolf Lodge. Together, they provide a more appealing vacation experience for families.
Will the City now spend more money promoting Kalahari and less promoting our historic attractions?
No. Kalahari will market itself as it has successfully done at its other two locations. Kalahari will, however, provide space in their lobby for regional tourism attractions to market our region.
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TAXES
What taxes will Kalahari pay and how much will the City get
annually?
Kalahari will pay more taxes than any other business in Fredericksburg, generating an estimated $5.9 million per year. Those taxes include: real estate tax, sales tax, personal property tax, lodging tax, meals tax, admissions tax and BPOL tax.
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INCENTIVES
Why would the City pay $61 million to attract Kalahari here?
The City is NOT paying Kalahari $61 million “up front.” The City is rebating Kalahari 47 ½ cents on every dollar that Kalahari pays in taxes. Kalahari will continue to pay taxes to the City long after the incentive package expires.
Shouldn’t there be some sort of “performance threshold” before the City pays any rebates?
There is. The City will rebate a percentage of taxes already paid by Kalahari to the City. The City doesn’t rebate anything until Kalahari generates revenue, and then taxes are paid by
Kalahari.
Why is the City paying such a high incentive package to
Kalahari?
No other company has ever made such a large investment anywhere in this region—$225 million and increasing daily. This investment, in addition to its 800-1000 jobs, makes Kalahari very appealing to any community. Therefore, the incentive package, including the tax rebates,
makes good economic sense.
Why isn’t the Kalahari incentive package more like
Wegman’s?
Attracting Wegman’s to Celebrate Virginia was good for the City. However, there is no
comparison with the Kalahari Resort. Wegman’s is a retail business; it isn’t investing
nearly as much in the City and won’t create as many jobs. Kalahari is investing seven times as much money in the City, hiring many more people and paying far more taxes. Wegman’s will pay only four different taxes. Kalahari will pay seven different
taxes.
Will the next business coming to Celebrate Virginia expect the same or even more incentives from the City?
No. Each economic development project proposed anywhere in the City is evaluated on its own unique merits.
Why is the City giving up $3.5 million in upfront fees?
Whenever a locality can attract a business willing to invest so much, it is not surprising
that fees are waived. The City’s $3.5 million in waived fees accounts for 1.5% of the investment made by Kalahari. This is not unreasonable; it is an investment in a long term stream of income for the City.
How much will the City have to pay to install the infrastructure (water, sewer, roads, etc.) for Kalahari?
Nothing. The infrastructure for Celebrate Virginia ($25 million) has been already paid by the Silver Companies. Silver Companies also donated land for a fire station, funds to help widen Fall Hill Avenue and sold the land to Kalahari for well below its market value.
Why isn’t the City getting interest on the money it’s giving
Kalahari?
The City is not loaning Kalahari any money, so this is not relevant. It will rebate a portion
of the taxes it receives from Kalahari, but ONLY after those taxes are received.
Isn’t it against state law to extend such an incentive package over 20 years?
No. The City’s Economic Development Authority is authorized to handle incentive packages of this length.
Is the City paying too much for this investment?
The City is not paying anything for Kalahari. Only Kalahari and Silver Companies are making the investments. Kalahari is investing $225 million in the City. Silver Companies has already invested $25 million to install the infrastructure at Celebrate Virginia—a cost normally paid by the
locality. Kalahari has already committed to invest in our community’s quality of life by being a generous corporate citizen. Silver Companies has donated millions of dollars over the years to individuals in need and our community’s non-profit services.
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ADDITIONAL
QUESTIONS
Why don’t we go after office projects, rather than retail and
tourism projects at Celebrate Virginia?
Office projects don’t generate nearly as much tax money and they contribute to rush hour
traffic. The City has relatively little developable land. Previous City Councils wisely decided to use the Celebrate Virginia land for retail and tourism uses because they create the most tax revenue.
Won’t Kalahari hurt the image of its future neighbor, the U.S.
Slavery Museum?
In a letter to the editor, Dr. Vonita Foster, Executive Director of the United States Slavery Museum, said, “The Kalahari Resort and Convention Center is clearly not in the business
of educating people about slavery and that chapter in American history. That is the mission of the National Slavery Museum. Instead, it seems evident that Kalahari’s mission is to provide first
class lodging, wholesome recreation and a meeting/event venue. The fact that Kalahari will draw approximately one million additional visitors annually
to the Fredericksburg region makes it a huge asset, not only to the National Slavery Museum, but to every museum and historic attraction in our area.”
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