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Town Council moves TBID

May 24, 2013

Deadlines placed for June, July

Mammoth’s town council last week set July 3 as a deadline for businesses wishing to protest the creation of a revenue-generating Tourism Business Improvement District (TBID).

The July date would be the end of a 45-day period that is required under California state law.

The TBID, which asks businesses to pony up a percentage of sales for a five-year period, has been prodded along by Mammoth Lakes Tourism Executive Director John Urdi.

Two further Town Council hearings will be scheduled at which those businesses can comment on the proposed district. The two council hearings will be a public meeting on June 5 and a public hearing on July 3.

Mailing of the notice initiates a 45-day protest period. If, during the 45-day period, protests are received from businesses that would pay more than 50 percent of the proposed assessment, no further proceedings to form the TBID can be taken for a period of one year.

The 45-day protest period will expire prior to the public hearing scheduled for July 3.

If successful, the formation of the improvement district would result in $4.7 million in annual collections beginning as early as Aug. 1.

Under the plan, which would extend for five years beginning Aug. 1, lodging would contribute one percent of gross room revenue to the TBID.

Most retail stores within the district would contribute 1.5 percent; the ski area would contribute two percent of lift ticket and ski school sales, and 1.5 percent of equipment rentals and retail revenues.

Restaurants that generate less than $150,000 in annual revenue or which do not receive at least 50 percent of their annual revenue from visitors as determined by credit card receipts, would pay $500 a year.

The proposed TBID would raise an estimated $4.7 million, according to the Mammoth Lakes TBID website that has been specifically set up to answer questions.

The biggest contributor would be Mammoth Mountain Ski Area, with an estimated annual contribution of $1.8 million.

Retail businesses would contribute $1.35 million, lodging would chip in $800,000, and restaurants would contribute $750,000.

Of that total, $2.35 million would go toward sales, marketing and public relations; $2,012,000 would go toward air service subsidy marketing;  $141,000 would go toward administration, $94,000 would go to collection costs, and another $94,000 would go to a “contingency” fund.

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