01/15/1986 Meeting - Laserfiche WebLink

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e e e Ms. Bascom said a restaurant tax is no longer a luxury tax because many people eat in restaurants quite often. She said many other cities have room taxes as high as 10 percent. She would like to discuss an increase in room taxes for the airport expansion with the Lane County Commissioners. Mr. Obie responded that some Lane County Commissioners and the Mayor of Springfield are interested in discussing increases in room taxes for the airport. Mr. Holmer said he is very concerned about building community consensus for' the expansion of the airport. He suggested a council committee be appointe!d to negotiate with other jurisdictions to ensure the support of the whole community for the expansion. He wondered if a vote on a port district would be advisable. He asked the Airport Commission how community consensus can be achieved. Mr. Chase replied that an educational program on the economic impact of airports is needed. He noted that the airport is the only City facility that makes money. Answering a question from Mr. Holmer, Mr. Gleason said a general obligation bond would require a vote. Mr. Talbott said a marketing strategy for a general obligation bond should be developed if the expansion is financed that way. Answering questions from Ms. Schue and Mr. Miller, Finance Director Warren Wong said the room tax in Eugene is 6 percent. Two percent of it goes to l.ane County and four percent is retained by the City. In the unincorporated areas, Lane County receives a five percent room tax. Eugene administers the tax for Lane County. He discussed the revenues that could be expected from an increase in the room tax. Mr. Miller wondered if some way (such as free advertising space) could be found to directly benefit hotels and motels if the room tax is increased. Responding to questions from Ms. Wooten, Mr. Chase said the Airport Commission did not hold formal hearings on the proposed expansion, and cited the number of public meetings on the subject. Mr. Talbott discussed public input during the development of the expansion plans. Mayor Obie said reaction from hotel and motel owners about the impact of an increased room tax has been mixed. Ms. Wooten said it would be helpful to the council if the Lane County Commis- sioners would postpone a decision about an increase in the Lane County roonl tax until representatives of the City can meet with representatives of the County, the tourism industry, and the Convention and Visitors Bureau to formulate a proposal to serve the needs of all the participants. Ms. Wooten moved, seconded by Mr. Hansen, to ask the Lane County Commissioners to indefinitely postpone deliberations on increasing the room tax; to schedule a public hearing of the council on an increased room tax; to create a committee composed of representatives of the council, the Convention and Visitors Bureau, the Lane County Commissioners, the Springfield City Council, and the tourism industry to discuss a mutually beneficial package; to develop a proposal to raise $450,000 for the airport expansion; and to schedule additional public hearings before acting on the proposal. The motion carried unanimously, 7:0. MINUTES--Eugene City Council January 15, 1986 Page 6