The Coronado City Council delayed a decision on whether to continue two longstanding, 0.5 percent assessments on local hotels for the coming year, asking for more financial detail and clearer alignment with community priorities before moving forward.
At a March 17 meeting, several council members raised concerns about a lack of clear, separate budgets for the Coronado Tourism Improvement District (CTID)’s two distinct assessments, the size and use of a roughly $1.2 million reserve fund, and the relatively small share of spending that appears to go toward visible citywide projects such as downtown beautification.
There was also discussion about using CTID more strategically to support shoreline preservation and to help address traffic and parking impacts tied to tourism, particularly around the Hotel del Coronado during the holidays and major events.
No decision was made, and the council will instead hear a more detailed presentation about the CTID at a future meeting before deciding its future.
CTID is funded by a 1 percent assessment on overnight stays at four major hotels: the Hotel del Coronado, Loews Coronado Bay Resort, the Coronado Island Marriott Resort & Spa, and the Glorietta Bay Inn. That assessment is split between two legally distinct districts, which follow slightly different laws.
All four hotels are included in both CTIDs; the difference is in how revenue from the assessment is allowed to be spent. Each hotel pays its 0.5 percent assessment to both districts, for a 1 percent total assessment.
Legally, CTID I can fund broader, destination-wide tourism efforts, while CTID II must provide a direct benefit to the assessed hotels. The program is administered by Discover Coronado.
If approved, the assessments are projected to generate $2.3 million in 2027, and their proceeds support tourism marketing and promotion, overseen by the nonprofit Discover Coronado. The idea behind the assessment is that tourism businesses — like hotels — benefit from this marketing, so they help to pay for it.
By consensus, the council directed City Manager Tina Friend to work with Discover Coronado Executive Director Todd Little to bring back a more detailed breakdown of CTID finances, including district-by-district budgets and reserve policy information.
The council also asked for a clearer explanation of how future CTID spending will support both hotel needs and broader community benefits within the constraints of state law.
The CTID item will return at a future meeting, at which point the council will decide whether to approve the revised plan and move ahead with the formal steps required to renew the district for the next fiscal year.
