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Tourist development tax proposal would set $30.6M for two-year capital cycle, split for beach parks and traditional projects
Summary
Visit St. Pete/Clearwater recommended allocating two-year TDT capital funds so 0.5% of the 6% tax goes to beach park facilities and 0.5% to traditional capital projects, totaling $30.6 million for the cycle; staff and commissioners asked for more detailed pro formas and reserve clarifications.
Brian Lowlack, president and CEO of Visit St. Pete Clearwater, outlined recommended changes to the Tourist Development Tax (TDT) capital projects funding program. The two principal changes are allowing TDT capital dollars to be used for beach park facilities and requiring the board to set a two-year allocation before opening the application cycle.
Lowlack walked commissioners through the math: 0.5% (of the 6% TDT) dedicated to beach nourishment plus 0.5% for capital projects over a two-year cycle produces $15.3 million for each category and $30.6 million total for the cycle. He said that combined with other allocations, the approach would result in approximately 24% of TDT collections being available for capital projects over the next cycle while retaining roughly 16% to build the capital reserve. Lowlack also referenced a pro forma extending to 2033 and highlighted a prior $86 million drawdown for emergency beach nourishment and a potential $43 million state reimbursement in 2028.
Commissioners questioned reserve levels, reporting assumptions and whether TDT strength came from higher room rates or more rooms sold. Lowlack responded that both room demand and average daily rate (ADR) contributed, that vacation rentals contribute an estimated 35–40% of monthly TDT collections, and that staff will return with more detailed financial material. Several commissioners supported the amendment conceptually but asked for the detailed pro forma and recommended staff bring related materials (including a presentation and flow charts) to the board before final action.
The board did not take final action at this workshop; Lowlack said staff will return with a budget-setting item next month and open the application cycle in October if the board provides direction.
