For the purposes of this chapter, the following definitions shall apply:
"Approved hotel"means any existing hotel or new hotel, as defined in this chapter, located within the City which has submitted an application for participation in the program and been approved by the City to participate in the program through a participation agreement.
"Developer"means any person or entity in the business of developing real property for the purpose of operating a hotel thereon, and with whom the City Council may, in its sole discretion, enter into a participation agreement.
"Existing hotel"means a hotel in the hotel business which is subject to the uniform transient occupancy tax, which was operating with a valid business license anywhere within the City not less than five years prior to the filing of an application by the existing hotel for assistance under this chapter.
"Hotel"means any existing hotel or new hotel as defined in this chapter.
"New hotel"means a hotel in the business of, or which proposes to be in a business, which will be subject to the uniform transient occupancy tax, which desires to open within the City, and is not operating within the City as of the date of the application by the new hotel for assistance under this chapter, and has not operated within the City within one year of the date of the application.
"Owner" or "operator"means the person or entity which owns and operates the hotel and has legal authority to enter into a participation agreement on behalf of the hotel with the City.
"Participation agreement" or "agreement"means an agreement between the City and an approved hotel which provides for the rebate from the City to the hotel owner of a portion of the hotel's uniform transient occupancy tax increment, at a rate and for a time period as determined by the City. Said agreements may include such provisions, restrictions, conditions or other provisions as the parties then agree are necessary to give effect to the intent and spirit of this chapter.
"Tax sharing report"means the report which shall be completed for any applicant hotel which shall analyze the projected economic factors relating to the expansion of an existing hotel, or construction of a new hotel, and the projected impact of such expansion or construction on the hotel's generation of occupancies which are subject to uniform transient occupancy tax and which generate general fund revenues to the City, which shall be considered by the City Council in making its decision as to a particular hotel, and which the City Council may use, along with other evidence presented, in its sole discretion, to determine whether the subject hotel is approved to participate in the program, and if so, the appropriate uniform transient occupancy tax sharing rate and time period for the participation agreement. The tax sharing report shall be prepared by staff or by a qualified economic consultant employed by the City. The cost of preparing the tax sharing report, whether prepared by staff or an outside consultant shall be paid by the owner of the hotel applying for participation in the program, unless the City, in its sole discretion, waives this requirement as part of the terms of the participation agreement.
"Uniform transient occupancy tax base"means the historical production of uniform transient occupancy tax by an existing hotel as calculated in the uniform transient occupancy tax sharing report. The uniform transient occupancy tax base shall be calculated in a manner as to take into account the then-current economic state relative to the historical performance of the hotel. In addition, it shall use a method determined by the preparer of the tax sharing report, for averaging production over an appropriate period adjusted for inflation, or other similar adjustment index, it being the intent that an approved hotel should receive a tax sharing arrangement which does not reward the hotel for improvement in uniform transient occupancy tax arising from general economic conditions as opposed to the improvements made by the owner.
"Uniform transient occupancy tax increment"means, on an annual basis, the difference between the uniform transient occupancy tax base and the amount of uniform transient occupancy tax actually generated by a hotel and received by the City after a hotel begins participating in the program. It is determined by reference to actual receipts by the City of uniform transient occupancy tax from the operator. With respect to new hotels, all uniform transient occupancy tax received shall be deemed to be uniform transient occupancy tax increment unless adjustment(s) and/or additional condition(s) are incorporated into the participation agreement and approved by City. Under no circumstance shall the City be liable for any reimbursement of uniform transient occupancy tax increment not actually received and permanently retained by the City.
"Uniform transient occupancy tax sharing"means the disbursement amount from the City to the owner of an approved hotel of a portion of that hotel's uniform transient occupancy tax increment, as determined each year for which the agreement is valid. The payment of the approved hotel's portion of the uniform transient occupancy tax increment shall be paid to the approved hotel within a reasonable time after the conclusion of each uniform transient occupancy tax quarter, consistent with the City's ability to verify its actual uniform transient occupancy tax receipts relative to the approved hotel.
(Ord. 16-18, 2019)