The Board of Supervisors Tuesday tentatively approved a five-year renewal of the Temecula Wine Country Tourism Marketing District, which will generate revenue for promotional campaigns to attract more visitors to southwest Riverside County for the benefit of vintners and other businesses.
In a 5-0 vote without comment, the board set an Oct. 5 public hearing to hear testimony, and barring any major objections that put the process on hold, the district is slated to be formally renewed in the first week of November.
Visit Temecula Valley, the nonprofit agency overseeing the district’s affairs, submitted a report indicating there’s overwhelming support for renewal.
The marketing district, analogous to a business improvement district under state law, was conceived in 2015 and founded as a five-year enterprise in August 2016. The current district is set to be disestablished on Oct. 31. However, with the board’s tentative authorization, the county Office of the Treasurer-Tax Collector will be prepared to continue to collect receipts for the renewed entity in November.
According to the county Office of Economic Development, all lodge proprietors within the boundaries of county-designated wine country — currently 169 — will be required to set aside 2% of gross receipts from overnight stays and dedicate that revenue to Visit Temecula Valley’s marketing efforts.
Funds will be procured on a quarterly basis by the county Office of the Treasurer-Tax Collector.
It’s estimated the district will generate roughly $780,000 annually, for a five-year total of $4.14 million.
According to Visit Temecula Valley, average hotel occupancy rates grew from 74.3% to 77.1% between 2016 and 2021. In addition to resort and motel availability, the wine country also includes private properties to lease as ultra-short term rentals.
The projected amount of sales tax revenue generated for the county and state in the 2021-2026 period was not mentioned in documents posted to the board’s agenda.