1. The Transient Occupancy Tax (TOT) rebate will be no more than 50% of the City’s portion of the TOT (which is 8%) for a fixed period of time to be documented in a binding TOT Rebate Incentive Agreement.
a. Under this Rebate Incentive Program, the City will temporarily receive no less than 4% in TOT until the TOT Rebate Incentive Agreement expires.
2. The individual TOT Rebate Incentive Agreement shall be for a fixed period of time, and shall not be extended.
a. The hotel must receive a Certificate of Occupancy within 18 months of development plan approval in order to be eligible for this program, unless another time frame is included in the agreement.
3. If at any time during the term of the TOT Rebate Incentive Agreement the hotel’s rating falls below a 4 star/diamond rating, the agreement shall immediately be terminated.
4. The Applicant must enter into a binding agreement with the City prior to, or at the time of, development application approval.
5. Estimated TOT revenues shall be based on revenue proforma from like hotel developments (i.e. franchise operator, similar or same brand), as documented in a report subject to the review and approval of the City Finance Director. Actual rebates will be based upon actual TOT remitted by the hotel, NOT estimated amounts.