TITLE: Title
A Resolution Making an Appointment to the Carrboro Tourism Development Authority
PURPOSE: The purpose of this item is for the Board of Aldermen to appoint a member to the Carrboro Tourism Development Authority (CTDA).
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DEPARTMENT: Town Clerk
CONTACT INFORMATION: Cathy Dorando - 918-7309
INFORMATION: The CTDA was established by Section 8A of the Carrboro Town Code. Alvin Sellers, a current member of the CTDA, has asked that someone be able to take his place from the Hampton Inn due to an increase in his duties. Per the Town’s Charter, hoteliers must have at least one member on the CTDA. Donald Strickland, the GM of the Hampton Inn and Suites in Carrboro and representative of the ATMA Hotel Group, has submitted his application to serve on the CTDA.
Section 3.8 Tourism Development Authority.
(a) Appointment and Membership. When the governing body of the Town of Carrboro adopts a resolution levying a room occupancy tax under this Part, it shall also adopt a resolution creating a Tourism Development Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The resolution shall provide for the membership of the Authority, which shall be a public authority under the Local Government Budget and Fiscal Control Act. The resolution shall provide for the membership of the Authority, including the members’ terms of office, and for the filling of vacancies on the Authority. At least one-third of the members must be individuals who are affiliated with businesses that collect the tax in the town, and at least three-fourths of the members must be individuals who are currently active in the promotion of travel and tourism in the town. The governing body of the Town shall designate one member of the Authority as chair and shall determine the compensation, if any, to be paid to members of the Authority. The Authority shall meet at the call of the chair and shall adopt rules of procedure to govern its meetings. The Finance Officer for the Town of Carrboro shall be the ex officio of the Authority.
FISCAL & STAFF IMPACT:
The Hotel/Motel Room Occupancy Tax is a tax for the Town of Carrboro and the distribution of the tax is outlined in Section 8A-4 of the Carrboro Town Code:
Section 8A-4. Distribution and Use of Tax Revenue.
The town shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Carrboro
Tourism Development Authority (CTDA). The CTDA shall use at least two-thirds of the funds remitted to it under this section to promote travel and tourism in Carrboro and shall use the remainder for tourism-related expenditures. The following definitions apply in this section:
(1) Net Proceeds. Gross proceeds less the cost to the town of administering and collecting the tax, as determined by the finance officer, not to exceed three percent (3%) of the first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%) of the remaining gross receipts collected each year.
(2) Promote travel and tourism. To advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in similar promotional activities that attract tourists or business travelers to the area. The term includes administrative expenses incurred in engaging in these activities.
(3) Tourism-related expenditures. Expenditures that, in the judgment of the CTDA, are designed to increase the use of lodging facilities, meeting facilities, and convention facilities in the town by attracting tourists or business travelers to the town. The term includes tourism-related capital expenditures.
RECOMMENDATION:r Staff recommends that the Board of Aldermen review the application and make the appointment to the CTDA.