ANAHEIM : Council Delays Decision on Time-Share Resort

A decision on the city’s first proposed time-share vacation resort has been delayed two weeks.

The City Council on Tuesday decided not to take any action on a proposal to convert Peacock Suites hotel until further research is completed into how the city would collect the hotel occupancy tax.

The city adds a 15% hotel occupancy tax to guests’ bills at the 160 hotels and motels across the city. Since Anaheim does not have any time-share properties, a procedure on how to collect the tax has not been established.

“I think time-shares would probably be very desirable because we want to create a resort atmosphere,” Mayor Tom Daly said. “But we need to be very, very careful.”

The Peacock Suites hotel generated $432,600 in hotel tax for the city during a 12-month period ending May, 1995.

Frank Elfend, of Elfend and Associates Inc., on Tuesday proposed that a flat fee of $27 per unit be paid weekly to the city in lieu of the 15% hotel occupancy tax.

Elfend, a lobbyist who represents hotel developers in the Disneyland area, made the proposal on behalf of Shell Group Inc., which is in the process of buying the hotel.

“We would like to come to terms with the city on a process and procedure,” said Elfend, who urged the council to make a decision as soon as possible.

But city officials said the figure would have to be at least $35 per unit in order for the city to break even with the conversion project.

“What we are concerned about is making sure the time-share property be treated the same as a hotel room,” said William Sweeney, finance director. “We are basically moving into unchartered waters, and what we do would set a precedent.”