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The council first heard the case for a transient guest tax in July, when Mayor Peggy Dunn urged council members to consider the benefits of the tax.

"It's important to access an additional revenue source for the city's needs," she said. "Storm-water management is a good example. The residential street program is another."

Under state statute, money raised from a transient guest tax is limited in how it can be used. Some of those limitations include economic development and infrastructure improvement.

But Leawood is chartering its own version of the tax - a move that opens up the way the tax can be spent. That means the city could use the money to fund a variety of programs and projects.

One councilman, Pat Dunn, said he would not be opposed to a portion of the proceeds from the tax being funneled back to whoever develops the hotel.

"I'm comfortable with it going to finance part of the project," he said.

An important aspect of the tax, he said, is that Leawood residents wouldn't bear most of the tax's burden.

"It's not like a sales tax."

Councilman James Taylor said he believes the tax is a good move for the city, as he believes Leawood will end up with more than one hotel.

The tax rate has been set at 6.5 percent, one-half of a percent more than Overland Park's.

Leawood's residents still have a say about whether the tax goes into effect. Residents have 60 days - now through Jan. 23 - to file a valid petition if they hope to block the tax.

If the petition is filed, the city could either abandon its plans for the tax or bring it to the voters during April's general election.

If there's no petition, the tax could go into effect Jan. 23