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Assembly considers using bed‑tax visitor enhancement funds to subsidize Centennial Building events

Sitka City and Borough Assembly · February 26, 2026
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Summary

An assembly member proposed using visitor enhancement (bed tax) funds to subsidize Centennial Building rental fees for off‑season conventions to attract visitors and increase bed and sales tax revenue; staff said implementation details and whether a new special revenue fund or supplemental appropriation would be needed require more work.

An Assembly member on Thursday floated a proposal to use visitor enhancement funds derived from bed tax revenue to subsidize Centennial Building rental fees for off‑season conferences and events, with the goal of attracting conventions that would generate hotel stays and sales tax revenue.

The member said the subsidy would help offset rental costs that currently deter groups from hosting events in Sitka during the off season and suggested Visit Sitka or a similar entity could administer applications. "We'd take some of the visitor enhancement on the bed tax and set it aside to subsidize events in the Centennial Building," the member said, arguing the hotels and short‑term rental operators that pay the bed tax would directly benefit from increased bookings.

Staff and other Assembly members discussed implementation options. Some members noted that if funds were added or reallocated the change might require establishment of a special revenue fund or a supplemental appropriation; staff said they would explore options to make administration minimally burdensome. The proposal was discussed as an idea to encourage off‑season economic activity rather than as a finalized appropriation.

The Assembly asked staff to consider the concept further and return with information about administration, eligibility and budgetary impacts before bringing any formal proposal forward.