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TO: Mayor Richard C. Irvin
FROM: Alex G. Alexandrou, Chief Management Officer
DATE: November 21, 2023
SUBJECT:
A Resolution Authorizing the Execution of an Agreement in Support of the Aurora Area Convention and Visitors Bureau through the Hotel Operators' Occupation Tax.
PURPOSE:
To obtain the City Council's approval of a resolution that would extend the City of Aurora's participation in the Aurora Area Convention and Visitors Bureau from January 1, 2024, through December 31, 2028. Aurora agrees to contribute ninety percent (90%) of its revenues collected through the Hotel Operators' Tax during this period, up to a maximum amount of $225,000.00 annually.
BACKGROUND:
In 1987, the city entered into an intergovernmental agreement (IGA) with the Villages of North Aurora, Sugar Grove and Montgomery concerning the imposition of a hotel/motel tax and the use of the proceeds of that tax to promote tourism in the greater Aurora area (Resolution No. R87-3668). Originally, the communities agreed to impose a three percent (3%) hotel/motel tax and give eighty percent (80%) of the proceeds to the Aurora Area Convention and Tourism Council (now named the Aurora Area Convention and Visitors Bureau [AACVB]).
Since the execution of the original agreement, it has been amended and its term has been extended several times. Over the course of the extensions, the number of participating municipalities increased, and the amount of hotel/motel tax proceeds conveyed to the AACVB increased from 80% to 90% of total collections.
DISCUSSION:
The extension of the ninth amendment to the agreement expired on December 31, 2022 and was ratified by the City Council on October 10, 2023 (R23-305).
In 2013, the City of Aurora re-evaluated the terms of the previous extensions with the AACVB based on the city's significant financial contribution compared to other member municipalities. The re-evaluation led to Aurora and the AACVB Board agreeing to significant changes to the terms...
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