Laguna Beach council studies 10-year renewal of tourism marketing district that would shift funding to ‘destination development’

City staff and Visit Laguna Beach presented a study-session overview of a proposed 10-year renewal of the Laguna Beach Tourism Marketing District (LBTMD), which would continue a 2% assessment on lodging receipts, allow the assessment to be adjusted up to 2.5% with city approval, and add a new “destination development” spending category that would shift portions of existing funding away from arts organizations.

Assistant City Manager Gavin Curran told the council the proposal is intended to extend the district’s term from five years to 10, retain the base 2% assessment while allowing the city and Visit Laguna Beach to increase the rate as needed (up to 2.5%), and create a destination development category that would receive 25% of district revenues under the draft allocation.

The change would reduce Visit Laguna Beach’s sales and marketing allocation from 35% to 25% and lower several arts recipients from 10% to about 8% each, while carving out the new 25% destination development allocation. Curran said the district plan presented to the council will list permissible uses for destination development, including…