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Council to consider transient-lodging tax rebate proposal for new hotel; staff will place item on May 20 agenda
Summary
Staff alerted council to a proposal from a hotel developer requesting a transient-lodging tax rebate; the city will place comparable examples and a draft framework on the May 20 agenda for council discussion about terms, caps and payment timing.
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City staff told the council the planning team for a proposed second Dundee hotel has asked the city to consider a transient‑lodging tax (TLT) rebate or rebate-like incentive to support development. Staff said they will place the developer’s request and comparable examples on the May 20 council agenda for discussion.
The city administrator told councilors that comparable programs are uncommon in Oregon and often feature different structures in larger markets; staff recommended the council consider a written framework that could include a cap on rebates and performance-based payment terms (for example, payments only after investment is complete or after certain occupancy or tax thresholds are met).
Councilors asked staff to gather Oregon and regional comparables and to prepare options that would protect the city if a project does not proceed. Staff also noted that transient-lodging-tax revenues have recently increased and that staff will bring financial figures and potential budget impacts to council budget sessions.
No commitment or formal incentive agreement was approved at the meeting; the council asked staff to provide a framework and comparable examples for formal consideration on a future agenda.
