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Mountlake Terrace outlines lodging-tax grant process and options after Studio 6 closure
Summary
City staff described how the lodging-tax grant program works, explained a $50,000 2025 budget, and answered questions about eligibility, timeline, reimbursed payments and how the impending closure/repurposing of the Studio 6 motel will affect future revenue.
Mountlake Terrace city staff held an informational session to explain how the city’s lodging-tax grant program works, how applicants should document expected economic impact and overnight stays, and how allocations will be handled after the city’s only motel, Studio 6, is repurposed.
The information session, led by Andrew, events coordinator for the City of Mountlake Terrace, Jeff Betts, recreation and parks director, and Sarah Kitzelman, finance director, reviewed eligibility, the application window, how awards are selected and paid, and options for applicants if local lodging inventory changes.
The city budgeted $50,000 for lodging-tax allocations in 2025, up from a prior $25,000 annual allocation, Andrew said. The fund is supported by lodging taxes collected within city limits; “Studio 6 is our only hotel or motel within our city limits,” Andrew said, noting the property’s planned repurposing. Jeff Betts, recreation and parks director, confirmed the motel property has been sold and “it’s going to be repurposed.”
Why it matters: lodging-tax allocations are intended to support events and facilities that increase overnight stays, which generate the tax revenue that sustains the…
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