A proposed initiative to generate roughly $4 million per year to fund the expansion of the Convention Center by taxing the city’s hospitality industry was announced Thursday.
The City Council unanimously approved a resolution of intention during Wednesday’s council meeting to create a “Tourism Improvement District,” who would collect money from a 1% tax imposed on lodging businesses citywide, including hotels and short- term rentals. Restaurants and retail businesses will not be a part of the district.
The funds will go towards upgrading the Convention Center and enhancements connecting to the facility.
“The Tourism Improvement District provides the dedicated funding needed to modernize our Convention Center, attract high-caliber events, and continue welcoming large groups and visitors whose spending supports our entire local economy,” Peggy Trott, chairwoman of P.S. Resorts, said in a statement.
P.S. Resorts will serve as the owners’ association and will manage funds.
The purpose behind improving the Convention Center was to remain competitive in the tourism sector, in which city officials believe the facility will attract major businesses and people to the city.
“The convention center and its surrounding district are vital economic engines for our city,” Karen Totaro, general manager for the center, said in a statement.
“This effort strategically invests in a maximizing economic impact, supporting local jobs and generating lasting value for our community, Totato adds.
Mayor Naomi Soto remarked on the importance of the district stating, “I want to show my appreciation and thank P.S. Resorts for taking the lead on this initiative. The Tourism Improvement District will provide a sustainable revenue path to ensure that our convention center remains competitive and drives our tourism economy. Now, we can be confident that Palm Springs will continue to be a premier destination for visitors worldwide.”
A meeting will be held this summer to show residents, business holders and other community members initial design concepts and to provide feedback.