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<br /> A. Policy Statement re: Use of Room Tax and Auditorium/Convention Operating Surplus
<br /> for Debt Retirement..,. The following policy statement was submitted for Council
<br /> consideration: "In the event of the construction of the Auditorium/Convention
<br /> . Center it is the policy of-;the city of Eugene that revenues received from the
<br /> transient room, tax. will continue to. be allocated upon recommendation from the
<br /> Transient Room Tax Allocation Committee in accordance with the purposes consistent
<br /> with the City Charter. ,Unallocated revenues will be applied to operating deficits
<br /> or for reducing the property tax required for debt service on the Auditorium/
<br /> Convention Center. Furthermore, ,in the event of operating surpluses ,from the
<br /> facility, such surpluses will be similarly applied against debt service."
<br /> Lee Bishop, president of Lane County Auditorium Association, commented on are-
<br /> cent _meeting__with representatives of the Economic Development Adiministration.
<br /> He said it ,is believed that the Center can be eligible for Federal funding and
<br /> that course will be pursued. With regard to use of room tax funds, Mr. Bishop
<br /> said the Association requests that 50% of the receipts be earmarked for the
<br /> Auditorium/Convention Center. He said the request is based on the original con-
<br /> cept of use of transient room tax funds for tourism and cultural activities, thus
<br /> 50% w07.1ld be for the Chamber of Commerce in its tourism promotion. He said,
<br /> priority in use of the funds so allocated to the Association would go first to
<br /> any deficit which may oGcurin operation of the facility, including employment
<br /> of a manager and staff and a study to determine impact of the Center on the
<br /> downtown ar~Cl (traffic, air pollution, etc.). Second, the balance of the money
<br /> . will be used for early bond retirement. '
<br /> M:c:s. ,Campbell pointed .out that, by the time the Center is. constructed and in
<br /> operation additional funds ~ill have. accumulated from the room tax.
<br /> Counqilman Williams .wondered whether the, Parks, Department anticipates requesting
<br /> a portion of these funds. He said the funds primarily have been financing tourism
<br /> and cultural activities but has not touched on recreational activities. Manager
<br /> not.ed,a. couple ,of minor req.uests from Parks approved by the Allocation Committee.
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<br /> Councilman Hershner.said ,he did not recall any decision on allocating a fixed per-
<br /> centage but rather had in mind,that a ceiling would be set on the percentage of
<br /> the fund which would be allocated to the Auditorium. ,Mr., Mohr said his recol-
<br /> lection was that i twas fel t if a fixed percentage of the funds was earmarked
<br /> for the Auditorium, then the AllocationCollmrittee would not be continually faced
<br /> with making a decision on how. to'distribute monies from the fund between the'
<br /> Auditorium and other requests submitted.
<br /> d,
<br /> Mrs. Beal suggested waiting until after the, election to decide on how. the funds
<br /> would be distributed in the event the bond issue is not approved. Mr. Bishop
<br /> said the statement of. policy was requested for voter consideration when the bond
<br /> issue is being .vot.edupon.'
<br /> . Manager reviewed a cumulative report of the room. t.ax fund and allocations which
<br /> indicates since its inception about 30% of the'revenues have not been allocated,
<br /> this over and above that portion also given to the Auditorium Association.
<br /> ,
<br /> Councilman Williams 'Said he was in 'favor of setting a fixed percentage to be
<br /> distributed to the Center. He added that since the purpose of the tax originally
<br /> was to support tourism, recreational, and cultural activities, it would seem
<br /> logical to apportion one-third to each. That division, he said, would seem to
<br /> fit in with the exi-sting numbers of unallocated funds and give at.tention to re-.,
<br /> creational type . activities ',also .
<br /> MrS. Beal favored setting a fixed percentage, for the Center, even if only as a
<br /> guideJ,ine. " She said, .there would be. recreational type. acti vi ties incLuded in the
<br /> events taking'place at the Center, as well as cultural. Mrs. Campbell felt a
<br /> higher percentage wouLd be necessary_ She said it will be ..the City!,s responsi-
<br /> bility to operate ,the facility ,and in going to the voters .for approval of the
<br /> bond' issue, a definite statement'should'bemade.' She added that i.t would be im-
<br /> portant to have' the best management ,possible for the c0mplex'which would take a
<br /> considerable amount of the money allocated.
<br /> ,.
<br /> . Mayor Anderson said he would not be opposed to setting some kind of ceiling, but
<br /> he felt setting a fixed percentage would not allow the Allocation Collmrittee the
<br /> flexibility necessary in the event another project appeared desirable in the
<br /> - future. Mr. Hershner agreed, saying a ceiling to guide the Committee in making
<br /> other',allocations ,would give leeway in. view 0f future unknowns,. ~ . , .
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<br /> 9/25/72 - 5
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