Explanation
This legislation amends Section 371.02 of Columbus City Codes to shift the Affordable Housing Trust’s (AHT) Hotel-Motel and Short-Term Rental Excise Tax distribution to Experience Columbus.
Experience Columbus has expressed concerns regarding their operating budget capacity to continue adequately driving the regional travel and tourism economy for Columbus.
The City intends to shift the current AHT Bed Tax distribution to Experience Columbus for the purpose of providing increased revenue for the advancement of the cultural development of the community, and for promotion and publicizing of the city. This adjustment reflects that Experience Columbus plays a central role in positioning Columbus as an economic powerhouse in the region, leading to the continued growth of local jobs, generating substantial visitor spending, and contributing significantly to the region’s tax base. Increasing the share of Bed Tax revenue allocated to Experience Columbus will better position the organization to compete with destination marketing efforts in peer metropolitan areas, where allocations to tourism promotion and visitor attraction are typically much higher than in Columbus.
In return the City intends to enter into a separate contribution agreement with AHT that contains a 5-year funding commitment totaling $12.5 million while the City searches for a new funding stream to replace AHT’s Bed Tax distribution long-term. The source of the interim funding will be the City’s Affordable Housing Bond dollars which is in alignment with the City’s stated affordable housing strategy. This arrangement will provide AHT with a higher, more consistent funding level to support their expansion and housing efforts.
Fiscal Impact: No immediate funding is required for this legislation. The City’s financial commitments contemplated herein, including the City Contribution, will be subject to future appropriation and authorization by City Council.
Emergency Designation: An emergenc...
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