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Council tables Newport Tourism Improvement District after debate over fees and conflicts
Summary
After hours of public testimony and council debate over administrative fees, nonresident impacts and potential conflicts of interest, the City Council closed the public hearing on a proposed Newport Tourism Improvement District and voted to table the item so petitioners and staff can propose revisions.
Councilors on the Newport City Council closed a continued public hearing on creating a Newport Tourism Improvement District and voted to table the proposal after lengthy public comment and debate over how much the city should receive in administrative fees and whether council members should sit on the district board.
The hearing opened with staff explaining the structure of the proposed district and the financial mechanics. “This is a a public hearing on the establishment of the Newport Tourism Improvement District,” the presenter said at the outset. Discover Newport and some local hoteliers said the district would boost off‑season marketing and support small businesses, while opponents questioned whether the city was fairly compensated for processing the collections and whether the district’s governance could create conflicts of interest.
Allison Atkins, identified as Discover Newport’s finance vice president, told the council: “It's 3%…At $16,000 that's $444 an hour you are getting to process that transaction.” Her remarks supported the 3% administrative fee in the petitioner’s plan and explained why businesses had petitioned for the flat $1.50 per-room assessment instead of a percent. Hotel representatives urged the city to approve the district to preserve marketing funds for shoulder seasons.
Opponents and some councilors pushed back. Several councilors asked whether the city could secure a higher administrative share, and whether language could bar board members from accepting travel paid by district funds. The city solicitor explained limitations under state enabling law, noting the council can reduce assessments, exclude businesses or trim boundaries but cannot unilaterally increase the city’s administrative percentage in the submitted plan.
After closing public comment, the council voted to table the measure to allow Discover Newport or the petitioners time to submit amended language addressing the council’s concerns. The council did not adopt any final changes at the meeting and said it expects the petitioners and staff to return with revised documents for formal consideration.
