Morrissey Bill Calls for Extra Tourism Funding

This city and other popular visitor destinations in California would receive financial help in maintaining and improving their tourist areas if a bill introduced by Assemblyman Jim Morrissey (R-Santa Ana) on Thursday becomes law.

The bill would divert some of the state’s share of sales tax revenue to tourism development zones that would be created throughout the state.

The amount cities receive would be based on the increase in tax revenue over the sum collected in the area prior to establishment of the zone. The zones would be in place for no more than 35 years.

The income would be used by cities and counties to finance public improvements that encourage tourism growth. Such improvements could include widening heavily traveled streets, placing overhead utility lines underground and building parking structures.

Anaheim Councilman Frank Feldhaus said his city, which is planning a major expansion of its convention center, attracts 40 million visitors annually. For Anaheim to keep up in the highly competitive tourism industry, he said, the city must upgrade its public facilities.

“If we had a mechanism where the state could refund us some of those dollars for enhancement, it would help us with things such as infrastructure and maintenance,” Feldhaus said Thursday.

“There is a large benefit to the county and the state to having all of these visitors here,” he added. “They generate a lot of sales tax dollars that are all sent to the state.”

Councilman Bob Zemel called Anaheim “the economic engine” that drives Orange County. There needs to be a reinvestment in the Goose That Lays the Golden Eggs, he said. “The Golden Goose is Anaheim.”

Provisions of the new bill call for tourism development zones to be no larger than 2,000 acres of contiguous land. Only one zone would be created in each county.

Designation of these zones would be made by the state Trade and Commerce Agency, based on criteria such as population size, community support, existing tourism activity and the potential for creating jobs.

Development zones located in incorporated areas would be controlled by city councils, and zones in unincorporated areas would be governed by county boards of supervisors.

Kristine Thalman, Anaheim’s intergovernmental relations officer, said the sales tax reallocation that would be provided by the Morrissey bill is sorely needed by California’s tourism areas.

“The state has benefited from tourism, and the investment has come from the local level,” Thalman said Thursday. “Cities are tapped out at this point. There is no way that we can continue to build the infrastructure to support economic development.”

David Stefanibes, Morrissey’s administrative assistant, said the assemblyman was asked by Anaheim officials earlier this week to introduce the legislation.

“We agreed that it would be good to submit and at least take through the process,” Stefanibes said. “We’ll take it through the process and see how it comes out.”

Councilman Lou Lopez predicted that enactment of the proposed legislation would spur tourism growth in the state.

“It’s a real good bill,” Lopez said. “It’s a good incentive for cities. It will encourage them to develop their tourism areas.”