Title:
Title
Use of Transient Occupancy Tax Generated in Council District 1
End
FileID
File ID: 2019-01414
Location
Location: District 1
Recommendation:
Recommendation
Pass a Motion affirming the City Council's commitment to consider the use of net new transient occupancy tax (TOT) generated in District 1 for TOT-eligible projects on the former Sleep Train arena site.
Contact: Michael Jasso, Assistant City Manager, (916) 808-1380, Office of the City Manager; John Colville, City Treasurer, (916) 808-3297, Office of the City Treasurer; Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, Office of Innovation and Economic Development
Body
Presenter: None
Attachments:
1-Description/Analysis
Description/Analysis
Issue Detail: On April 30, 2019, City Council directed staff to bring forward a report for a vote of commitment that TOT generated by new hotels in Council District 1 remain in the district for arena reuse or a destination project. The North Natomas area has witnessed the construction of a number of new select service hotels. As of October 2019, there are six hotels operating in District 1, with 664 rooms. Four hotels are under construction and four others are entitled. These new hotels would add approximately nine hundred rooms to the existing inventory in the district.
While hotels and other lodging businesses seem to be prospering, as evidenced by a 10% increase in TOT revenue collected in FY18/19 as compared to FY17/18. the area of the former Sleep Train arena complex continues to be undeveloped and underutilized. To spur potential activity at the Sleep Train arena site., net new TOT generated in District 1 could be utilized to assist TOT-eligible projects in the Sleep Train arena complex. These projects must qualify for the use of TOT revenue in accordance with section 3.28.180 of the City Code (. These funds would only be available after the necessary bond debt service payments and coverages are met for existing TOT ob...
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