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HomeMy WebLinkAbout2008 05_Strong Neighborhood Initative_2008.07.15CITY OF OWASSO, OKLAHOMA RESOLUTION NUMBER 2008 -05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, DESIGNATING THE STRONG NEIGHBORHOODS INITIATIVE AS AN ECONOMIC DEVELOPMENT AND CULTURAL ENHANCEMENT PROGRAM TO RECEIVE FUNDING DERIVED FROM THE INCREASED REVENUE GENERATED FROM THE PROPOSED INCREASE IN THE HOTEL TAX RATE. WHEREAS, Owasso voters approved Ordinance No. 699 on March 5, 2002 enacting a 3% Hotel Tax; and, WHEREAS, The Owasso City Council has approved Resolution Number 2008 -04 calling for an election on August 26, 2008 for voters to consider increasing the Hotel Tax rate from 3% to 5%; and, WHEREAS, Additional Hotel Tax funds will be available if the proposition is approved by Owasso voters; and, WHEREAS, Funds from the Hotel Tax are "set aside and used exclusively to encourage, promote and foster economic development and cultural enhancement, tourism and pursue regional promotion for the City of Owasso;" and, WHEREAS, Strong neighborhoods are foundational to a community's long -term economic vitality; and, WHEREAS, The "Strong Neighborhoods Initiative" is a program designed to build alliances with community neighborhoods, home owner associations, and property owners in an effort to promote neighborhood sustainability, encourage active neighborhood participation and collaboration among residents whose mission is to improve the quality of life throughout the City of Owasso; and, WHEREAS, It is imperative to the future of our community and its economic health that residents are empowered and encouraged to take action in programs and activities intended to increase awareness, health, safety, quality of life, and beautification of Owasso neighborhoods. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, that, to -wit: If the Proposition to increase the Hotel Tax from 3% to 5% is approved by the voters in the City of Owasso on August 26, 2008, the funds thereafter generated by the Hotel Tax shall be designated for economic development and cultural enhancement programs which support the Strong Neighborhoods Initiative. Designation of these funds for the Strong Neighborhoods Initiative shall automatically terminate five (5) years from the date the Proposition increasing the Hotel Tax from 3% to 5% is approved by the voters unless the City Council reauthorizes the designation of such funds for the Strong Neighborhoods Initiative prior to that date. (PkIA11100"' O F OFFICIAL SEAL ATTEST: Sherry Bisep, City Clerk APPROVED AS TO FORM: .L�,/ G11 r ulie Lombardi, City Attorney DATED this 15th day of July, 2008. Stephen C audella, Mayor MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: CHELSEA M.E. HARKINS DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: HOTEL TAX DESIGNATION RESOLUTION NO. 2008-05 DATE: July 11, 2008 BACKGROUND: On March 5, 2002 Owasso voters approved a three percent (3 %) Hotel Tax. At that time, Owasso had two operating hotels and the anticipated revenue was $60,000. Today the City has three operating hotels anticipating revenue at three percent (3 %) tax of $120,000 a year. The Owasso City Council approved a resolution calling an election asking the voters to approve an increase in the rate of the Hotel Tax from three percent (3 %) to five percent (5 %) on June 17, 2008. The proposition would be placed on the August 26, 2008 ballot with the State Run -off Election. Increasing the Hotel Tax to five percent (5 %) produces approximately $200,000 in revenue a year. Each additional hotel will increase the amount of revenue generated based on the number of rooms, room rate and occupancy rate. Three new hotels are either planned or are currently under construction. Based on a five percent (5 %) rate, each additional hotel would generate approximately $50,000 to $70,000. The revenue from the two percent (2 %) increase in the tax with six hotels will be approximately $140,000. FUNDING: The current ordinance restricts the use of hotel tax funds "to encourage, promote and foster economic development and cultural enhancement, tourism and pursue regional promotion for the City of Owasso, Oklahoma." The benefit of a rate increase would be to fund projects that complement and raise the lifestyle expectations of our residents, businesses and visitors. Discussions at the Staff and Council levels led to the exploration of economic development programs and initiatives that would build strength and vitality for our residential and commercial community. Staff researched and visited several cities and learned about collaborative efforts between neighborhood programs and cities. These programs help preserve the economic energy for communities. The long -term economic stability for our City is dependent on long -term stability for our neighborhoods. STRONG NEIGHBORHOODS INITIATIVE: Owasso has been fortunate to experience several years of robust residential and commercial growth and economic development opportunities. What was once a quiet rural community is now a thriving modern city. Ask a longtime resident of Owasso why they live here and you might get a response that speaks to history of family, commitment to community, and satisfaction of seeing their hometown become a successful city. Ask a newcomer why they chose to move to Owasso and you will likely hear of the reputation of excellence in our schools, and a safe, friendly city committed to positive character and strong family values. It is important to all residents that the investment they have made in the city they chose to call home is protected and continues to grow. Strong neighborhoods are the key to the continued momentum of investment by the business community and steady increase in property values for our residents. Each of our neighborhoods is a community. Neighborhood communities are more than a group of homes in a subdivision. Strong, vibrant neighborhoods are made up of families that are investing in a community with other families who have pride in their home, and a desire to see their children raised in a healthy, safe environment. However, if uncared for, a neighborhood can quickly decline into properties that are neglected, with an increase in code enforcement issues and crime, and a decrease in property values. As this occurs, families move out and the once vibrant community loses its luster. This is evident from nearby cities that did not recognize the importance of keeping neighborhoods strong, safe, and attractive, until it negatively affected their community. The decline of neighborhoods ultimately results in a decline in the appeal for businesses and families to move, invest, and work here. The City recognizes the important role neighborhoods play in our continued success. Making an investment in strong neighborhoods now is minimal compared to the cost of salvaging a neighborhood. Owasso must be as exciting and attractive twenty years from now as it is today. In order to realize the continued investment from the business community, the City must invest in strong neighborhoods. In order to benefit from the continued investment from families seeking a safe, attractive community to raise their children, the City must invest in strong neighborhoods. In order to create a city that incents children who are raised here to remain, it is in the City's best interest to invest in strong neighborhoods. Nothing could have a greater impact on the future of Owasso than to invest in and devote the necessary resources to keeping our neighborhoods as strong years from now as they are today. A Strong Neighborhoods Initiative combines resources from the city, neighborhood residents and community stakeholders to align goals aimed at the continued success of the community. A Strong Neighborhoods Initiative gives residents the ability to effectively address issues that impact safety, code enforcement, and neighborhood appearance, such as gateways into the neighborhood and area parks, as well as nearby business development. Residents participating in a Strong Neighborhood Initiative become engaged in protecting their investments and in planning for the future of our city. A successful Strong Neighborhoods Initiative consists of several components. 1. A commitment from City leaders to protect the investments residents and businesses make in our community. 2. A staff member focused on the strategic goals of the initiative. This Neighborhood Coordinator /Specialist is responsible for leveraging resources, increasing citizen participation and coordinating the collaboration of community stakeholders. 3. A willingness on the part of residents to commit to providing the necessary resources for the success of their neighborhoods. Residents must be willing to invest time, money and "sweat equity." 4. Neighborhoods willing to commit these resources are then eligible for matching assistance from the City. By partnering with the City, neighborhoods are stronger and more successful in meeting their goals. The City must become fully engaged in keeping our neighborhoods strong through a formal initiative that provides residents access to the resources that will ensure continued success and protection of their investment. This initiative ensures the momentum of business investment in the City. Waiting until the effects of decline appear would be a mistake. A benefit of engaging residents in the success of their community is the creation of a network of organizations to provide input on a number of issues that shape the future of our city. To maintain and enhance our economic development efforts, the City must have strong neighborhoods. To ensure this, Resolution No. 2008 -05 would direct the additional funding derived from the two percent (2 %) increase in the Hotel Tax toward a Strong Neighborhoods Initiative for our community. CITY COUNCIL AND OWASSO ECONOMIC DEVELOPMENT AUTHORITY (OEDA) COMMENTS: City Council — On July 8, 2008, the Council reviewed and discussed Resolution No. 2008 -05 and the Strong Neighborhoods Initiative. Council discussed the need to review the progress and accomplishments of the Strong Neighborhoods Initiative after a period of years. Consequently, Resolution No. 2008 -05 was revised to include language that would terminate the designation of funds to the Strong Neighborhoods Initiative after five years. OEDA — Resolution No. 2008 -05 and the Strong Neighborhoods Initiative were presented to the OEDA on July 10, 2008. After extensive and thoughtful discussion, the Trustees suggested a review be conducted of the level of funding for the Strong Neighborhoods Initiative next budget year and determine if the funding levels are appropriate or need adjustment. The trustees also expressed a desire to have more funding from the hotel tax to be allocated towards more traditional economic development uses. RECOMMENDATION: Staff recommends Council approval of Resolution No. 2008 -05 designating the Strong Neighborhoods Initiative as an economic development and cultural enhancement program to receive funding derived from the increased revenue generated from the proposed increase in the hotel tax rate. ATTACHMENTS: 1. Resolution No. 2008 -05