Managers of and the Broomfield Event Center want to raise sales tax on purchases made in the development.

The tax increase would replace fees the center adds to each ticket, which center managers said are making it harder to attract shows.

City Council discussed the proposal Tuesday night during a study session. If put into effect, the 0.2 percent sales tax on purchases in Arista could increase to 1 percent. If implemented, the cumulative sales tax rate for the area could reach 9.25 percent.

The increase would not affect items purchased in other areas of Broomfield. The rate is higher in Arista because it is considered a special district and can collect more taxes to pay off bonds.

Council was lukewarm to the idea, citing concerns about clarity on what fees would be collected at the center if the tax increase is approved, and that the higher rate could scare away shoppers from Broomfield as a whole.

Mayor Pro Tem Walt Spader said it was unclear if the center would stop charging for parking and when the change would take place.

"Given the history, I want to be sure that if I vote for this change I clearly understand that they won't have someone standing at the garage, or they will," he said. "I want to know what the deal is."

That answer wasn't clear Tuesday. Broomfield Finance Director Greg Demko said the parking fee might be charged until sales tax revenue generated at Arista covers bond payments.

The answer to the parking question is among those council sought from staff before it votes on Sept. 2 on whether to advance the tax increase to the ballot.

Councilmen Todd Schumacher and Bob Gaiser said they were concerned shoppers wouldn't distinguish between the tax rate in Arista and the rest of Broomfield.

Broomfield collects a 4.15 percent tax on most purchases. Another 4.1 percent tax is collected for the state and entities such as the Regional Transportation District, so shoppers pay $8.25 on a $100 purchase. The proposed tax in Arista would equal $9.25 on a $100 purchase, up from $8.45.

Demko told council the rate might be lowered in the future as more tax revenue is generated.

Before the tax rate can increase, it must be approved in the November election. The electorate would be limited to property owners and the relatively small number of registered voters who live in Arista. City manager George Di Ciero said 84 units are currently occupied.

If voters give the nod, City Council would have to change municipal statutes and set a new sales tax rate. The state caps sales tax for special districts such as Arista at 1 percent.

The tax increase would pay for $19.6 million in bonds issued in 2006 and used to build the Arista parking structure, and could end a confusing number of fees. Currently, fees totaling $5 are added to every ticket to pay for the structure. Originally, the fee was $2, but it was raised when the center stopped charging drivers to park in the garage. Management said the change was aimed at reducing traffic jams.

The center will still be able to add other fees onto the price of admission and keep them to cover other expenses.

Center managers this summer asked the city to consider the sales tax change, Deputy City Manager Charles Ozaki told council Tuesday. Their request was prompted by concerns the center was losing events to other venues because of the fees it charges.

"The process and method (of collecting) the revenue is cumbersome and has unintended consequences," Ozaki said.

The center's management believes tickets would appear cheaper without the fees, and limiting the tax increase to the Arista development would be in line with the city's demand that the development pay for itself, Ozaki said.