13 - Hotel Occupancy Tax Amended Management Lease Agreement

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Item No. 13 1 441 1 71 1 (717 1 1 =If, 0 TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: HOTEL OCCUPANCY TAX DATE: March 20,2018 BACKGROUND: The city has in place a lease agreement with the Larnar County Chamber of Commerce that gives all of the Hotel Occupancy Tax (1-10T) proceeds to the VCC, except for 5% retained by the city 1"or administrative costs. A portion of these funds are then transferred to the civic center as follows: "Use three -sevenths of HOT proceeds received from CITY for ,operation and maintenance of LCC facilities to use, staff, maintain, and operate the Love Civic ('enter (LCC) facilities for the operation oil' a conference, meeting, convention, and exhibit center for holding conventions, meetings, exhibits and other events and activities to attract conventions, tourists, and other visitors and for the benefit of the City and the general public." STATUS OF ISSUE: The center is getting older and is in need of nurnerOLIS capital maintenance and repair items, so is seeking to increase funding for that purpose. The chamber board, LCC board, and this week the Visitors & Conventions Council board have all recommended that the agreement be amended to provide a 50150 split between the VCC and LCC. In other words, each entity Would receive three and one-half cents of the seven cents collected. ["'ach one-half cent is budgeted to bring in $44,107, so the change, if approved, will move approximately that much additional money each year to the LCC. Chamber board chairman Josh Bray and LCC chair Curtis Fendley will be in attendance for the March 26 meeting, BUDGET: This is a budget neutral measure. RECOMMENDATION: Authorize the city manager to eXCCLite an amended management lease agreement with the Lamar County Chamber of Commerce.