Council discusses using transient guest tax to advance farmers market and downtown destination plan

Councilmembers discussed the possibility of using transient guest tax (hotel/motel) revenue to help fund a permanent farmers market and components of a downtown destination plan as the city prepares for two new hotels and growing tourism demand.

Why it matters: A permanent farmers market and downtown improvements are viewed as tourism draws that could increase visitor spending; council must weigh competing uses of limited transient guest-tax funds and consider parking and land-use implications before committing resources.

Council members said the recent farmers market drew vendors and visitors from outside the area and noted two dual-brand hotels opening in 2026 could boost transient-guest-tax receipts. One councilmember suggested allocating a portion of those funds to a farmers market project, but staff and others cautioned the destination-downtown cost estimates are several years old and likely understate current costs; parking and land control around the proposed site will affect feasibility and timing.

City staff noted that some existing agreements reserve parking uses and that building a covered market would likely require keeping certain parking areas and temporarily closing them during market hours. Council asked staff to reexamine cost estimates and to explore partnership options with the Chamber of Commerce and economic development entities, rather than moving ahead without updated financials and land-use planning. No funding decision was made.