OXNARD : Owner of 2 Hotels Fights Fee Proposal

A company that owns two hotels in Oxnard is opposing a city proposal to charge hotels and motels a fee on room rentals to help finance the city’s Convention and Visitors Bureau.

Robert D. Varley, executive chairman of the bureau, said Friday that he is concerned about the opposition of the 140-room Casa Sirena and the 273-room Financial Plaza Hilton.

Martin V. Smith and Associates, which owns a controlling interest in the two hotels, said in a written statement that it opposes the assessment because hotels and motels are “already paying a substantial fee, and the industry cannot pass on more costs.”

Hotels and motels in Oxnard now pay a 9% bed tax.

Earlier this year, the city considered eliminating the bureau to save $398,000 and help reduce the city’s projected $2.8-million deficit in the 1990-91 budget.

Instead, the City Council voted to contribute $199,000 to keep the bureau open until December to give staff members time to identify a new source of funding for the bureau.

Under the assessment, which was proposed in July, the city would charge a 2% fee on room rents for all hotels, motels and apartments for transients in the city and generate about $360,000 a year for the bureau.

However, if the city receives written protests from hotel and motel owners who would generate 50% or more of the fees, the city cannot legally form the district, city officials said.