Vallejo council declares intent to raise hotel assessment in phased increase to boost Visit Vallejo marketing

The Vallejo City Council on Tuesday voted to declare its intent to increase the Vallejo Tourism Business Improvement District assessment in a two‑step, phased increase approved by Visit Vallejo and hotel stakeholders.

Under the proposed change, the assessment would increase first by 50¢ per occupied room night beginning Jan. 1, 2026, and then by another 50¢ on Jan. 1, 2027. That structure would raise the assessment for hotels with more than 40 rooms to $2.50 per occupied room night. Staff estimated the first 6 months of incremental revenue (if the change is effective Jan. 1) would be about $57,031 and a full fiscal year‑to‑year increment of about $114,063 assuming the phased schedule.

Kurt Smith, Visit Vallejo’s CEO, told the council hotels asked for a phased approach rather than a single larger hike to avoid placing larger relative burdens on smaller independent operators. Visit Vallejo said the additional funding would be used for expanded, always‑on out‑of‑market advertising and destination marketing programs aimed at increasing occupancy and average daily rate at Vallejo hotels.

The council adopted the resolution of intention and scheduled the required public meeting and protest hearing dates associated with Business Improvement District changes. The item will return after the formal protest period; under state law, hotel owners can file written protests and the council cannot adopt the ordinance codifying the assessment if a majority of affected owners file a protest.

Ending: If the protest hearing results in fewer than a majority protest, the council will be asked to adopt an ordinance to amend the city code to change the assessment; the increase would then become effective 30 days after adoption.