CITY COUNCIL: Receive report and provide policy direction on the Inn Incentive Program

City Council
Agenda Item Summary

Name: Receive report and provide policy direction on the Inn Incentive Program.

Description: The goal of this program is to encourage renovations to the inns throughout the City of Carmel-by-the-Sea and to develop an incentive that will make it more attractive for the inns to make these improvements to their rooms and facilities. The expected end result of this is to improve occupancy rates and/or to allow for increased room rates, both of which would lead to an increase in collected Transient Occupancy Tax (TOT) for the City.

Overall Cost:
City Funds: Unknown. Although there will be some cost to develop the
program, the net result should result in increased revenues for the City.
Grant Funds: N/A

Staff Recommendation: Provide policy direction.

Important Considerations: The incentive program should not use funds from reserves or from the City’s General Fund. Rather, over the longer term, funds generated by the program should augment Carmel’s tax base by increasing the desirability of the inns.

Decision Record: None.

Reviewed by:

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John Goss, Interim City Administrator Date