Report Prepared by: Frank Quintero, Deputy City Manager and Director of Economic Development
Title
SUBJECT: Discussion and Direction Regarding the Merced Hotel & Lodging Association's Tourism Based Improvement District Proposal for Merced Tourism
REPORT IN BRIEF
The Merced Hotel & Lodging Association is requesting that the City contribute 2% of the Transient Occupant Tax (TOT) base to be allocated to the Tourism Based Improvement District. For example, if the collected Transient Occupancy Tax is $1.8 million, then the Transient Occupancy Tax base is $18 million, which results in a potential contribution of $360,000 from the TOT collected by the City. The TOT in the City of Merced is 10%.
RECOMMENDATION
City Council - Provide staff direction on the request submitted by the Merced Hotel & Lodging Association.
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ALTERNATIVES
1. Provide staff direction; or,
2. Refer to staff for reconsideration of specific items as requested by the City Council; or,
3. Defer action until a specific date
AUTHORITY
Section 200 of the Merced Municipal Code
CITY COUNCIL PRIORITIES
The Tourism Based Improvement District aligns with the City Council Goals and Priorities for FY 23/24, "b) Economic Development, Tourism - continue efforts to establish a local Tourism Based Improvement District (TBID) to enhance existing marketing efforts."
DISCUSSION
At the City Council meeting of December 20, 2021, the Council voted to approve a supplement appropriation of $43,825.00 to Kristin Lowell, Inc., to start the process of forming a Tourism Based Improvement District (ATTACHMENT 1.)
The establishment of a Tourism Based Improvement District (TBID) in the City of Merced is an important step as there are tremendous opportunities to capture tourism dollars to assist in promoting Merced as a destination while allowing the city to remain competitive in a crowded global marketplace. The formation of a TBID continues to be a City Council Goal and Priority (ATTACHMENT 2.)
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