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Orange County visitor Development Authority <br />m• <br />The Orange County Economic Development Commission's Strategic Plan <br />includes the goal of attracting visitors along with preserving <br />historic, cultural and natural resources. <br />A visitor Service Task Force of the Public- Private Partnership has <br />proposed establishing an Orange County Visitor Development <br />Authority with funding sources including a County -wide hotel /motel <br />tax and a requested allocation of 20% or about $50,000 from the <br />Chapel Hill hotel /motel tax. <br />The proposed County hotel /motel tax would generate an estimated <br />$115,000 annually from a 1% tax. The proposal is to seek <br />legislative authorization for a 3% occupancy tax and to initially <br />levy 1% to support the proposed Authority. Such a County -wide tax <br />would be in addition to and would not alter the Chapel Hill <br />hotel /motel tax. <br />The Chapel Hill hotel /motel tax of 3% generates about $280,000 <br />annually. In past years, the Council has allocated $50,000 for <br />visitor information services and support of cultural events. The <br />remainder helps pay for services of General Fund departments, and <br />is equivalent to revenue from about 1.4 cents of the property tax <br />rate. <br />Almost 80% of the hotel rooms in Orange County are in Chapel Hill. <br />ISSUES <br />Oraanization <br />The Visitor Task Force proposal (attached) does not specify whether <br />the proposed authority would be a non - profit private entity, an <br />independent public authority or a part of the County government, <br />or what the specific make -up of an advisory or governing board <br />would be. <br />We believe that the visitor development agency would benefit from <br />being an agency of County government with general administrative <br />and support services available from the County, and suggest this <br />approach. <br />If the County agency approach were pursued, we believe an advisory <br />board composed primarily of visitor and tourism- related <br />businesspeople would be appropriate. In addition, we suggest that <br />the make -up of a board take into account the large percentage of <br />hotel /motel rooms in Chapel Hill. <br />return <br />a visor Development Authority <br />