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San Francisco committee hears mixed public comment on proposed Tourism Improvement District
Summary
The Government Audit & Oversight Committee heard public testimony on a proposed Tourism Improvement District that would add an assessment beginning Jan. 1, 2009; major hotels urged approval to fund marketing and Moscone Center upgrades while small operators pressed for greater transparency on how taxes are spent.
The Government Audit & Oversight Committee of the San Francisco Board of Supervisors heard public testimony on Monday about a proposed Tourism Improvement District (TID) that would levy an assessment beginning Jan. 1, 2009, and continue through Dec. 31, 2023. Lisa Pagan of the Mayor’s Office of Economic and Workforce Development said the meeting’s purpose was to gather public comment; the formal establishment hearing is scheduled for Dec. 16 and ballots have been mailed.
Representatives of large hotel interests urged the Board to back the district. Scott Boblitz of the Hilton San Francisco said a positive vote would provide “much needed funds for marketing and sales of the city of San Francisco” and help support the hotel’s 1,100 employees while supporting upgrades and maintenance at Moscone Center. Clem Esmail, general manager of the Palace Hotel speaking for Starwood properties in the city, said the convention market is critical for hotels and recommended moving forward with the TID.
Task force member Rick Swig told supervisors the initiative brings together “multiple constituencies” — including organized labor and the tourism community — to provide sustainable marketing funds and to preserve or expand Moscone Center so San Francisco remains competitive for large conventions.
Not all speakers supported immediate approval. John Keniston, a small, family-owned hotel operator (Golden Gate Hotel, 25 rooms), said hotels and related businesses benefit from tourism but questioned where existing transient-occupancy tax revenue is directed and described the proposed additional 1.5 percent assessment as a substantial burden for small operators. He said he would vote yes because his business benefits from visitors, but asked the city to return more of the existing tax revenue to tourism operators and to be clearer about funding priorities.
No action on establishing the district was taken at the committee meeting; Chair Aaron Peskin said additional opportunities to testify will be available when the legislation reaches the full Board in December. At this meeting the clerk filed the hearing item without objection.
