Council agrees to pursue ACRA work session to study airport-closure mitigation

A council member floated a proposal for a short-term hotel and short-term rental tax holiday to blunt the economic impacts of a planned airport closure, but council debate quickly focused on implementation hurdles and whether such a measure could be enacted without voter approval.

"I think with a tax holiday, you're gonna have to go back to voters because they've already the approval to move forward with the tax," one councilor said, noting prior commitments that rely on that revenue, including bond pledges for housing projects. Mayor Richards cautioned that the city might not be well positioned to absorb large revenue losses without substituting funds and that private-sector actions (landlords, hoteliers) would also determine whether a tax change would achieve the intended effect.

Several council members urged a targeted, data-driven approach. The council agreed there should be a work session with ACRA to review industry survey data and mitigation options (marketing, incentives, or tailored assistance by sector) rather than pursue an immediate broad tax change. Council members noted ACRA's existing destination-marketing funds and suggested staff explore whether those dollars or county actions could be leveraged.

Council asked staff to schedule the work session and to return with options, fiscal impacts, and timing considerations for any ballot measures if they are needed.