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REDLANDS - Two tourism proposals - one to spend money and one to raise it - will be extending their stay on the City Council's agenda following unanimous votes Tuesday. A 2 percent raise in the city's transient occupancy tax - paid by guests staying at Redlands hotels - could create $120,000 or more in additional funding for the city, according to Mayor Jon Harrison. That money could, with two-thirds voter approval, be devoted to encouraging cultural and heritage tourism in the city, said Harrison. Last year, a fledgling program with the same aim was supported by $30,000 from the general fund and $10,000 from the University of Redlands. Most of the money was used to hire part-time tourism staff based in the A.K. Smiley Public Library. Hotel guests currently pay a 10 percent tax on the cost of their stay, but the money goes into the general fund to cover the potential impact visitors may have on city resources such as infrastructure and public safety personnel, he said. The 10 percent tax generated about $600,000 for the city in 2005, according to Harrison. The council must decide by their July 18 meeting whether to put the suggested special tax on the Nov. 8 ballot. A special election will cost about $73,000, according to recent estimates. Harrison emphasized that "this is not a tax on the residents of Redlands. It is a tax on visitors to the community." Councilman Mick Gallagher supported the idea, saying it would bring Redlands in line with other cities. San Bernardino City has a 10 percent hotel tax, while Ontario charges 11.8 percent per night, according to officials. The Councilwoman Pat Gilbreath questioned whether the tax would penalize Redlands hotel owners competing with hotels proposed for the unincorporated county land in northwest Redlands known as "the doughnut hole." San Bernardino County's transient occupancy tax is 7 percent, according to the county's tax collection Web site. The council voted to request a staff report analyzing an increase in Redlands' hotel tax, including specifics on holding a special election and how additional revenue would fund staff, materials and programs in support of cultural and heritage tourism. The council also voted to continue its discussion of becoming an "investment partner" in a tourism center proposed for Hospitality Lane in San Bernardino. Council members asked for more information about the proposal and at least two more weeks to consider it. The proposed California Welcome Center would be a part of the state's tourism program and would represent the region, not just San Bernardino, according to Steven Henthorn of the San Bernardino Convention and Visitors Bureau. A contribution of $125,000 over five years gets Redlands a display area in the center and the promotional support of the state and regional organizations, said Henthorn. Some businesses and schools have already made shorter commitments, he said. City staff recommended a five-year commitment, totaling $50,000, split evenly between the general fund and the Redevelopment Agency's budget. The additional money needed to become an investment partner could come from the Chamber of Commerce, local businesses or the University of Redlands, staff suggested. A San Bernardino welcome center is contingent on approval of the California Division of Tourism. The state organization rates bids for new centers on a point system. The bidding process is expected to start at mid-summer. Gallagher said he was concerned the center would promote San Bernardino over other cities in the partnership. Henthorn said that the center staff of two people would represent and be accountable to all partnership members. The state's 10 other welcome centers also have volunteer staff, said Henthorn. Those volunteers could represent individual cities, he said. Gilbreath, who agreed to work with Henthorn on behalf of the council, said she was concerned about fiscal impacts over and above the membership commitment. In particular, she mentioned the cost of producing promotional material to stock the center. Councilman Pete Aguilar asked if there might be a point when the center had so many members that the financial demands on some could be reduced. "That decision-making process could be made by the equity partners," said Henthorn. Resident Molly Burgess encouraged the council to budget more than $10,000 a year for the project and to minimize the number of Redlands groups participating so the council could retain more control. Burgess said that she has worked with at least three Redlands groups concerned with local tourism, each of which was at a loss about how to promote Redlands to communities outside of Redlands. Spending $10,000 a year on the center was more effective than spending $5,000 for a one-time ad in Sunset magazine and another $5,000 on a one-time billboard, according to Burgess. Char Burgess, no relation to Molly Burgess, said the volunteer tourism group she belongs to supports the welcome center. "If we don't establish this type of establishment near us it will probably end up in Riverside, which we don't think will represent us very well," she said. The topic is expected to be discussed again at the next regularly scheduled council meeting, Tuesday, June 6. E-mail Staff Writer Colleen Mensching at cmensching@redlandsdailyfacts.com Council considers raising transit tax
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