sr-051369-6bCITY OF SANTA MONICA
DATE: May 1, 1969
TO: The Honorable City Council
FROM: James B. Reidy, Jr. , Councilman
SUBJECT: Civic Auditorium Exhibit Hall
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The major opposition to the development of an Exhibition Hall and Parking
Structure at the Civic Auditorium, as most of you are aware, has been
based on the premise that there has not been enough hotel rooms in the city
to support such a development. This shortage of rooms, within a year hence,
will be an argument of the past as we will have an excess of 1, 000 new hotel/
motel rooms in operation within a block of the Civic Auditorium. This
favorable room situation is such, in view of the studies that the Council has
conducted, that I believe it is now not only feasible from an operational
standpoint to expand the present facility but economically practical as well.
With this in mind, I have asked the City Manager to compile and submit to
the City Council a dollar chronology of the Bed Tax since its inception.
I would recall to your attention that when the Bed Tax was implemented, it
was done on the basis that the revenues derived would be used for promotion-
al purposes.
At the present time, the City is spending something in excess of $80, 000 per
year for promotional purposes, yet the Bed Tax is currently estimated to bring
in close to $150, 000. It would seem that with the advent of some 1, 000 new
Hotel/Motel rooms in the City (keeping in mind the fact that well under 1, 000
rooms are currently subject to the Bed Tax as the ordinance is presently
written) that this revenue source should increase, if not exponentially, at least
substantially. Therefore, I would propose to you that serious consideration be
given to using the excess Bed Tax revenues over that allocated for direct
promotion, for the purpose of securing revenue bonds for the immediate
construction of this much needed facility. I would further suggest that the
City Council instruct the City Manager to develop such a program and present
it to the City Council for consideration and that the City Manager be advised
by the City Council that, if feasible, it is the Council's intention to implement
this program and. that the Bed Tax revenues should not be considered as
available for General Fund use in the preparation of the 1969-1970 Budget.
cc City Manager
City Clerk