Council approves two‑year lease and funding support for California Welcome Center, adds TID audit requirement

The City Council on March 24 approved a two‑year lease and operating agreement with the California Welcome Center for a municipal property at the station area, including a city contribution request of $200,000 a year plus the expected TID (tourism improvement district) share (estimated in staff materials at roughly $95,000), subject to an additional council-accepted amendment to conduct or commission an audit of the TID’s collection and accounting during the two‑year agreement.

Public commenters and some councilmembers criticized the Welcome Center for a history of nonpayment of rent to date and asked for clearer financial oversight of TID revenues and hotel/motel remittance rates. Don Chapman and other Welcome Center supporters described private fundraising commitments (staff cited roughly $1.7 million in private pledges for buildout/curation) and argued that a two‑year agreement is needed to build marketing capacity and leverage private dollars.

City staff and the council discussed the decline in TID receipts since 2018 (linked in part to hotel closures and the COVID period), and staff agreed to pursue an audit or financial review of TID revenue, compliance and hotel participation during the two‑year contract term. Several councilmembers said they were comfortable supporting a two‑year arrangement if staff could confirm audit costs and a schedule for results.

The motion to approve the lease and operating agreement, as presented, passed with an amendment directing staff to begin an audit or analysis of TID finances during the contract period. The council emphasized that the city's role is to partner and to require transparency in return for public support.