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TO: Mayor Richard C. Irvin
FROM: Alex G. Alexandrou, Chief Management Officer
DATE: September 15, 2023
SUBJECT:
Ratification of payment to the Aurora Area Convention and Visitors Bureau.
PURPOSE:
To obtain City Council approval for payments made to the Aurora Area Convention and Visitors Bureau (AACVB) for the 2023 year.
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, attached). Originally, the communities agreed to impose a 3% hotel/motel tax and give 80% of the proceeds to the Aurora Area Convention and Tourism Council (now named the Aurora Area Convention and Visitors Bureau [AACVB]).
The agreement underwent significant changes in 2015, including shorter renewal terms, from five years to two years. For the 2020 agreement year (put forward to for approval in December of 2019), the city opted to move to a three-year term cycle. The agreement expired on December 31, 2022, however 2023 payments were expended pending further discussions on a new agreement.
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 has increased and the amount of hotel/motel tax proceeds conveyed to the AACVB increased from 80% to 90% of total collections.
DISCUSSION:
Staff met with Cort Carlson, Executive Director of the AACVB and the Board Chair, Alderman Bill Donnell in September of 2023. This specific item is requesting a ratification for payments made, and the city will work closely with the AACVB to update the agreement and bring forward for approval in December of 2023 for a yet to be determined new term.
IMPACT STATEMENT:
Ratification of payments to AACVB will compensate...
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