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Keizer council opens wide debate over hotel fees: industry‑run TPA versus city lodging tax increase
Summary
City councilors and hoteliers debated whether to pursue a hotel‑led Tourism Promotion Area (TPA) or raise the city transient lodging tax (TOT) to fund sports field upgrades; TravelSalem and hotel owners urged inclusion in the conversation, while city attorneys recommended putting any tax increase to voters.
Keizer — Council members spent the longest portion of their July 20 meeting considering two different ways to generate visitor revenue for sports‑facility improvements and tourism promotion.
TravelSalem and local hotel owners pitched joining a larger, industry‑run Tourism Promotion Area, a self‑assessed fee that hoteliers control and that does not require a public vote. Angie Villareal, president and CEO of TravelSalem, said a TPA gives hoteliers a direct voice over marketing dollars and has produced measurable increases in room rates and occupancy in the region. “Hoteliers decide how those monies are spent,” Villareal said, noting Salem’s program has driven room nights and incremental TOT revenue for the region.
By contrast, City Manager Adam Brown described an alternative: increasing Keizer’s transient occupancy tax (TOT) — currently 6% — by 4 percentage points so new money could be dedicated to capital improvements at Keizer’s tournament fields. City Attorney Joseph Lindsey advised council that because Keizer’s charter is silent on unilateral tax increases, raising the TOT would likely require a ballot measure or a charter amendment; he warned council against assuming the council can enact the increase without voter approval.
Hotel owners and industry representatives objected to the idea of a council‑imposed TOT increase without prior consultation. Written testimony from hotel owner Ken Ward Dhaliwal said the lodging community had been working with TravelSalem to explore a 4% TPA and that a unilateral tax increase would feel like “an end run” around businesses that would pay it. Greg Astley of the Oregon Restaurant and Lodging Association urged “careful consideration and meaningful engagement,” noting a move from 6% to 10% is effectively a 67% increase in the local rate.
Several councilors stressed they were still in an exploratory posture. Councilor Christopher said she favored being “a participant” in any decision about releasing marketing funds and asked for regular reports before payments are released. Council President Starr and others emphasized the need to talk with Keizer’s three hoteliers directly before choosing a path.
The council directed staff to hold a focused work session that will include hoteliers, TravelSalem, the city manager and legal counsel to review the technical and timing implications of each option and to determine next steps. City staff and the city attorney said there is enough calendar time to place a measure on the November ballot only if council acts rapidly and unanimously at the next meeting to adopt ballot language for publication; several councilors said they preferred more time for deliberation and stakeholder outreach.
What happens next: staff will schedule a work session and return with options and timelines. No ordinance or ballot measure was adopted at the July 20 meeting.
