PALMDALE — Hotels and motels across Palmdale would each pay a 2% fee to fund efforts to draw more visitors to the city under a proposed Tourism Improvement District.
The District was presented to the City Council on Tuesday, the first step in creating the self-assessment District.
The proposal was created by hotel owners and managers through the city. It would create a nonprofit, private entity to direct spending of the estimated $900,000 annually the District would raise, according to the staff report.
The funding would be used to help increase hotel stays through promotion of travel and tourism. The District would look to hold special events — which would also benefit the local community — improve infrastructure and enhance current visitor attractions.
The assessment would last for five years, if approved, Luis Garibay, acting Director of Community and Economic Development said.
The assessment paid by all hotels and motels would be 2% of the gross short-term room rental revenue; it would not include stays of more than 30 days or those under contract before Nov. 1.
This is in addition to the 10% transient occupancy tax collected by the city for its own purposes, Garibay said.
Unlike that tax, the 2% assessment would be used only by the District for its efforts to boost guest stays, he said.
The process to establish the Tourism Improvement District was begun by the City Council on Tuesday, and will include two more meetings with public hearings on the proposal. Officials expect to have it established by November.
Councilmember Richard Loa expressed concerns that the smaller hotels and motels would be required to participate in the District, but were less likely to see the same benefits as the larger hotels.
He said he wanted it expressly written into the District’s formation documents that the small hotels would be adequately represented and receive benefit of the program.
Economic Development Director Luis Gonzales said all hotels in the city were included in the District proposal process.