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2 | Page CHOCVB BOD Meeting January 21, 2015 <br /> <br /> <br /> <br />In response, Mark Sherburne inquired as to how occupancy tax revenues could be used for a project of this nature and <br />if this precedent were set, what would stop another Orange County hotelier from dictating how his occupancy taxes be <br />used? Further, Sherburne inquired as to whether existing legislation would allow this. <br />Annette Stone replied that according to state legislation, one-third of occupancy revenue can be used for infrastructure <br />and that is the provisions that would allow this project to be considered. However, there would need to be a change in <br />the legislation in order for this formula to be allowed. Ms. Stone noted that a tax increase was discussed as well. Ms. <br />Stone commented that the issue has been opened to the community for their input and another hearing would be held <br />February 3. <br />Mike Gering commented that Carrboro’s legislation reads the same as Hillsborough’s and reminded that it is the <br />Tourism Development Authority ( TDA) that controls allocation of funds; not the local governing town board. <br />Annette Stone replied that the TDA would make a recommendation to the Carrboro Board of Alderman; and if any <br />request was made to the legislature, it would be from the town board. <br />Mark Sherburne inquired on how one-third of the occupancy revenue could be used for the ArtsCenter venture when it <br />is already slated for the parking garage. Ms. Stone replied that an additional one-third would come directly from the <br />new hotel and help fund the Arts and Innovation Center. <br />Rosemary Waldorf commented that she sees it as a problem to use occupancy tax for any capital venture; that <br />occupancy taxes should be used for their intention: tourism promotion. <br />Mr. Carey expressed concern that the Carrboro Tourism Development Authority (TDA) would be making the <br />recommendation to use occupancy tax funds to fund the hotel since an employee of the hotel sat on the Tourism <br />Development Authority’s board. <br />Laurie Paolicelli commented that she felt the important thing for the Visitors Bureau to do is to make sure that the <br />information being repeated is factually accurate. Carrboro’s net share from the new hotel, 3%, would be about <br />$78,000 based on rooms and past and future trends. The statement that the hotel remains 95% full is not accurate. <br />Current legislation mandates 67% or 2/3 go directly to tourism marketing. The facts are important reminded Paolicelli. <br />Mr. Szostak, Architect for DPAC, was working with a different legislative model in Durham. Occupancy tax legislation is <br />not uniform and Durham’s legislation allowed for funding of the DPAC. Carrboro’s bill is different. Ms. Paolicelli also <br />encouraged Carrboro to look at the total supply of new hotels that will be open at the same time, in Orange County . <br />The playing field will be different then. All facts must be accurate when making an important decision like this. <br />Mr. Carey agreed, stating that developers should be made aware of how many projects are in the pipeline in Orange and <br />surrounding counties; or it could create over supply. <br />Ms. Paolicelli stated that she was researching Charlotte’s NASCAR Museum situation, which was originally funded partly <br />with occupancy tax revenues. Mecklenburg County introduced a separate, new 2% tax to its existing 6% occupancy tax, <br />in order to help fund the NASCAR Museum which is now was struggling financially. <br />Steve Brantley inquired on who would own the proposed new building occupied by the ArtsCenter. <br />Annette Stone replied that the Town of Carrboro would own, therefore no property tax would be collected. <br />Mr. Brantley asked if there would be the need for an additional parking deck.