Attachment II
DRAFT

RESOLUTION NO. 2004-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND REITERATING ITS POLICY OF RELATING THE EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL DEVELOPMENT TO THE HOTEL/MOTEL (Transient Occupancy) TAX AND REPEALING RESOLUTION 2004-11

THE CITY OF ASHLAND RESOLVES AS FOLLOWS:

SECTION 1. That the city council recognizes that the source of monies for the Economic and Cultural Development Grant program is the Hotel/Motel Tax.

SECTION 2. The following are the goals which the Economic and Cultural Development Committee is attempting to meet by granting money to applicants:

00	a)	Tourism Promotion.
	b)	Economic Development by:
		0001) Responding to general inquiries about business in the city; 0002) Providing assistance to existing small businesses; 0003) Providing technical and financial assistance for the expansion of 000000existing businesses; 0004) Providing technical and financial assistance for the development of 000000new businesses; or 0005) Providing such other services and support to business as the city 000000council may deem beneficial.
	c)	Cultural Development.

SECTION 3. Beginning in Fiscal Year 2004/2005, the city council will appropriate thirty-three and one-third percent (33.3%) of the anticipated Hotel/Motel tax monies for Economic and Cultural Development. The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23% of total Hotel/Motel tax revenues were expended on tourism promotion, as defined in Chapter 818 of the 2003 Oregon Laws, and will continue to be spent on tourism promotion increased or decreased annually consistent with the estimated TOT revenues budgeted.

The amount to be allocated annually to Ashland Chamber of Commerce (COC) and Oregon Shakespeare Festival (OSF) for promoting tourism per the state definition shall be $80,432 and $110,000, respectively, adjusted each year by the amount of inflation or deflation established in the Budget process. An additional amount of $160,000, adjusted each year by the amount of inflation or deflation established in the Budget process, will be granted annually to COC for economic development projects in cooperation with City staff. The allocations in this paragraph shall sunset after three years.

Any additional amount for tourism required by Chapter 818 shall be allocated to COC, OSF or other group during the budget process. The remainder of the monies budgeted for these grants may be allocated to grantees for activities fitting in any of the three categories set forth in Section 2 of this Resolution.

By January 31 of each year each recipient of grants under this resolution shall submit a report to the city council setting forth how the grant funds received were expended in furtherance of the goals set forth in Section 2.

SECTION 4. The following guidelines and criteria are established for the Economic and Cultural Development Grants:

a)	Grantee shall be a 501(c) non-profit agency.
b)	Grantee shall be a non-governmental agency.
c)	Grantee shall promote livability for the citizens of Ashland.
d)	The minimum grant proposal will be $1,000.
e)	The grant will benefit Ashland in regards to enrichment and activities of an economic nature.
f)	Grantee shall serve the population in Ashland but may encompass other venues in the Rogue Valley.
g)	Irrespective of sub-paragraph 'b', the City of Ashland Public Arts Commission may apply for and receive funds.

SECTION 5. Resolution 2004-11 is repealed upon passage of this resolution.

SECTION 6. This resolution takes effect upon signing by the mayor.

This resolution was read by title only in accordance with Ashland Municipal Code Section 2.04.090 duly

PASSED and ADOPTED this ______day of ______, 2004:
Barbara Christensen, City Recorder

SIGNED and APPROVED this ______day of ______, 2004:
Alan W. DeBoer, Mayor

Reviewed as to form:
Michael W. Franell, City Attorney

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