Chapter 3.52
TOURISM PROMOTION AREA SPECIAL ASSESSMENT

Sections:

3.52.010    Definitions.

3.52.020    Tourism promotion area established.

3.52.030    Special assessment on lodging businesses within the TPA to be levied.

3.52.040    Administration and collection of special assessments.

3.52.050    Use of special assessment revenues for the establishment of a sports commission.

3.52.060    Administration of the Centralia/Chehalis tourism promotion area.

3.52.070    Modification or disestablishment of the Centralia/Chehalis tourism promotion area.

3.52.010 Definitions.

A. “Agreement” shall mean this interlocal cooperation agreement entered into among Chehalis and Centralia, for the establishment of a tourism promotion area by the cities as authorized by RCW 35.101.040(2).

B. “Annual budget” shall mean the Centralia/Chehalis tourism promotion area budget for a fiscal year, as adopted or amended by the Lewis County public facility district, which shall identify all estimated revenue from special assessments for the fiscal year, and providing for all proposed uses of special assessment revenue for the purpose of providing tourism promotion in Centralia/Chehalis for the ensuing fiscal year.

C. “Lodging business” means a business which is located within the Centralia/Chehalis tourism promotion area that furnishes lodging taxable by the state under Chapter 82.08 RCW that has 40 or more lodging units. Lodging facilities with fewer than 40 rooms are not considered “lodging businesses” for the purpose of this agreement and are exempt from any fees imposed under Chapter 35.101 RCW.

D. “Operator” means the operator of a lodging business, whether in the capacity of owner, general manager, lessee, sublessee, mortgagee in possession, licensee or any other similar capacity.

E. “Lewis County public facility district (LCPFD)” means a duly organized and legally existing Washington public facilities district and municipal corporation, created by Lewis County in accordance with Chapter 36.100 RCW pursuant to Resolution No. 07-247 of the county, adopted on August 13, 2007.

F. “Sports commission” means the commission which is a committee of the Lewis County public facilities district, organized pursuant to the bylaws and other authority and procedures as established by the LCPFD.

G. “Centralia/Chehalis corporate city limits” means the entire geographic boundary of Centralia/Chehalis.

H. “Centralia/Chehalis tourism promotion area” or “TPA” means the tourism promotion area created by the resolution of the Chehalis and Centralia councils pursuant to the authority of the Tourism Promotion Areas Act, Chapter 35.101 RCW, as authorized or as will be authorized by the resolutions of each of the respective city councils of the cities adopting the terms of this agreement.

I. “Room revenues” means the gross per-night charge (nights of stay) imposed for the rental of a room or combination of rooms for lodging.

J. “Special assessment” means the levy (charge) imposed by Centralia/Chehalis on the operators of a lodging business within the Centralia/Chehalis tourism promotion area and subsequently passed on to the guests of the lodging business, under the authority of Chapter 35.101 RCW for the purpose of providing for funding of tourism promotion in Centralia/Chehalis.

K. “Tourism promotion” means activities and expenditures designed to increase tourism and convention business, including, but not limited to, advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists, and operating tourism destination marketing organizations.

L. “Transient basis” means the rental of a room or rooms for dwelling, lodging, or sleeping purposes by the operator of a lodging business for a period of 30 consecutive calendar days or less, counting a portion of a day as a full calendar day. [Ord. 962B § 3, 2016.]

3.52.020 Tourism promotion area established.

The Centralia/Chehalis tourism promotion area is hereby created to provide revenue to fund tourism promotion that will benefit the operators of lodging businesses in the cities of Chehalis and Centralia. The tourism promotion area shall consist of the corporate city limits of the city of Chehalis and the city of Centralia. This new chapter is established imposing a special assessment on the operator of lodging businesses, as defined by RCW 35.101.010(3), via an interlocal agreement with the city of Centralia and the LCPFD for the establishment of a tourism promotion area. [Ord. 962B § 3, 2016.]

3.52.030 Special assessment on lodging businesses within the TPA to be levied.

A. The Centralia/Chehalis TPA will impose a special assessment on the operators of lodging businesses within the Centralia/Chehalis tourism promotion area in accordance with the special assessment as set forth in city of Chehalis Resolution No. 16-2016 and city of Centralia Resolution No. 2646.

B. In accordance with the interlocal agreement entered into by the city of Chehalis, the city of Centralia and the LCPFD, the LCPFD shall be required to contract with the State Department of Revenue for the administration and collection of such special assessments pursuant to RCW 35.101.090.

C. It is understood and agreed by and between the cities through their respective resolutions that the operators of lodging businesses within the Centralia/Chehalis tourism promotion area will be subject to a special assessment to be levied at the rate of $2.00 per lodging unit rented.

D. Any change in the special assessment rates shall be made only by amendment of the resolution by the Chehalis and Centralia city councils.

E. It is understood and agreed by the parties that the special assessments imposed under this section are not a tax on the “sale of lodging” for the purposes of RCW 82.14.410 and are not applicable to temporary medical housing exempt under RCW 82.08.997.

F. It is understood and agreed by the parties that the special assessments imposed under this agreement are in addition to the special assessments that may be levied under Chapter 35.87A RCW. [Ord. 962B § 3, 2016.]

3.52.040 Administration and collection of special assessments.

A. It is understood and agreed that, in accordance with RCW 35.101.090, the Washington State Department of Revenue shall administer the special assessments authorized under this agreement and shall deposit the special assessments collected into the local tourism promotion account created in the custody of the State Treasurer under RCW 35.101.100.

B. It is understood and agreed that, in accordance with RCW 35.101.100, the State Treasurer has the authority to distribute the money from the tourism promotion account to the LCPFD on a monthly basis. [Ord. 962B § 3, 2016.]

3.52.050 Use of special assessment revenues for the establishment of a sports commission.

A. It is understood and agreed that all of the revenues derived from special assessments shall be allocated by the LCPFD for the establishment of a sports commission. The LCPFD shall have the ultimate authority to set and approve all annual budgets.

B. The revenues derived from the special assessments shall be used only for the following:

1.  Establishment of a sports commission to promote and sponsor athletic and sports events that promote tourism within the TPA.

2. Marketing and recruitment of sporting events by the sports commission to promote local tourism that benefits the lodging businesses and tourism industry within the Centralia/Chehalis tourism promotion area. [Ord. 962B § 3, 2016.]

3.52.060 Administration of the Centralia/Chehalis tourism promotion area.

A. The Lewis County public facilities district agreed to administer the tourism promotion area via an interlocal agreement between the cities of Chehalis and Centralia and the LCPFD. This agreement requires LCPFD to administer the TPA to comply with all applicable city and state laws, ordinances, and regulations. The LCPFD shall be required to comply with all applicable provisions of law, including Chapter 35.101 RCW et seq. and with all city of Chehalis and Centralia resolutions and ordinances as well as all regulations lawfully imposed by the State Auditor or other state agencies.

B. The LCPFD shall be responsible for establishing a sports commission and administering the activities and programs of the Centralia/Chehalis tourism promotion area and to prepare an annual budget. The sports commission board shall be represented by:

1. Public facilities district representative;

2. The Centralia School District athletic director;

3. The Chehalis School District athletic director;

4. Centralia College athletic director;

5. Centralia parks and recreation representative;

6. Chehalis parks and recreation representative;

7. Pacific Athletic Club representative;

8. Centralia hotelier’s representative;

9. Chehalis hotelier’s representative;

10. Four at large members selected by a majority of the sports commission.

C. The annual budget for the Centralia/Chehalis tourism promotion area shall consist of:

1. A list of the lodging businesses subject to special assessments and an estimate of the revenue to be received from all such lodging businesses; and

2. A statement of the proposed budget for all sports commission activities and programs to be funded from special assessments during the ensuing fiscal year.

D. All special assessments imposed within the TPA and received from the Washington State Treasurer and any interest therein shall be deposited by the LCPFD in a special account. Provided, however, no special assessment shall be dispersed in any fiscal year until after the adoption of that fiscal year’s annual budget; provided further, that the LCPFD shall not expend in any fiscal year special assessments in excess of the approved fiscal year’s annual budget.

E. The parties hereto acknowledge and agree that funds derived from the TPA special assessment are intended only to develop a sports commission for the promotion and recruitment of sporting events. [Ord. 962B § 3, 2016.]

3.52.070 Modification or disestablishment of the Centralia/Chehalis tourism promotion area.

A. The Chehalis and Centralia city councils, by appropriate action, may modify the provisions of the ordinance establishing the TPA after adopting a resolution of intention to such effect. Such resolution of intention shall describe the change or changes proposed, and shall state the time and place of a public hearing to be held by the Chehalis and Centralia councils to consider the proposed action.

B. Upon receipt of a petition indicating a desire to disestablish the TPA, with the signatures of the persons who operate lodging businesses in the TPA who pay 40 percent or more of the total special assessments, the Chehalis and/or the Centralia Council shall adopt a resolution of intention to disestablish the TPA, and shall state the time and place of a public hearing to be held by the Chehalis and/or the Centralia council to consider the proposed action, provided the public hearing will be at least 15 days prior to consideration of the proposed action. If at said hearing a petition objecting to the disestablishment is presented, with the signatures of the persons who operate lodging businesses in the TPA who pay 51 percent or more of the total special assessments, the TPA shall not be disestablished. If such petition objecting to the disestablishment is not presented at said hearing, either city council shall disestablish the TPA. [Ord. 962B § 3, 2016.]