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TO: Mayor Robert J. O'Connor
FROM: Carie Anne Ergo, Chief Management Officer
DATE: November 17, 2016
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 December 22, 2016 through December 31, 2019. Aurora agrees to contribute 90% of its revenues collected through the Hotel Operators' Tax during this period up to $175,000 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 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]).
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 seventh amendment to the Intergovernmental Agreement will expire on December 22, 2016 (Resolution No. R15-01099).
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 of the Agreement. The changes limited Aurora's financial contribution and increased its ...
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