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Council continues action on new Tourism Improvement District after ethics concerns
Summary
Councilors debated a new tourism improvement district petition from Discover Newport, which would increase the city's administration fee and include a 5% community-grant program; because of questions about board composition and potential conflicts of interest the council voted to continue the item for further review.
Councilors debated a proposed Tourism Improvement District petition and accompanying resolution with Discover Newport. The petition would raise the city administrative fee from 3% to 4%, create a community grant stream (5% of district revenues), and add indemnity language so the district would cover legal costs for overdue collections. Proponent Councilor Napolitano said Discover Newport revised the petition to remove a city‑council seat from the district board and added grant and liability language in response to prior council concerns.
Several council members pressed for ethical clarity and potential recusal where a councilor might also sit on another governing body affected by the district. ‘‘If we wanted ethical clarity on whether a sitting counselor who currently sits on the TID voting on this issue was a conflict of interest, the right place to go... is to the Ethics Commission for an opinion,’’ the solicitor advised. After extended discussion the council voted to continue the matter to the next meeting to allow more review and community outreach.
