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Staff warns HOT revenues could be cut roughly 50% after a hotel goes dark; planning funds proposed
Summary
City staff told council a key hotel has been offline for months, reducing hotel-occupancy-tax (HOT) projections roughly 50%, and proposed small FY2027 line items plus a planning outreach to five hotels to rebuild tourism demand.
David presented the hotel-occupancy-tax (HOT) fund and said the city has about 317 hotel rooms across five properties and is projecting a roughly 50% reduction in HOT revenue because a major hotel has been dark for the past five to six months. He asked the council to approve small FY2027 line items (about $16,000 for supplies and $50,000 for contractual services) to fund a dining guide and planning work and proposed a joint planning effort with all five hotels to identify a tourism-driving asset.
Council members supported advertising and virtual tools (QR codes and a dining guide) and asked staff to pursue low-cost marketing and coordination. Bertha and the city manager said staff will refine the proposal and return with specifics before the August 17 deadline for tax-rate decisions.
