Government Arcata

Arcata City Council Explores Transient Occupancy Tax Incentive Program

The Arcata City Council held its regular meeting on July 16th, 2025, focusing primarily on a potential Transient Occupancy Tax (TOT) revenue-sharing program to boost hotel development. Public comment covered a range of issues, from divestment proposals to concerns about homelessness. The council also approved the Arcata Friday Night Market.

Arcata City Council Explores Transient Occupancy Tax Incentive Program

The Arcata City Council convened its regular meeting on July 16, 2025, devoting significant time to exploring a potential Transient Occupancy Tax (TOT) revenue-sharing program aimed at stimulating new hotel construction and renovations. The proposal, presented by the City Manager, included a review of similar programs in other California cities, such as Palm Springs, Dublin, Temecula, and Hemet, showcasing various approaches to revenue sharing and incentive structures. Council members engaged in a robust discussion about establishing clear criteria to ensure the program's financial viability and prevent the unintended consequence of reducing revenue from existing hotels. The council also debated the need for time or room limits on the program's incentives. No final decision was reached, with further discussion scheduled for a future meeting.

Beyond the TOT program, the meeting featured a lively public comment period. Speakers addressed a variety of community concerns. Abraham discussed the history of Zionism; Pat urged divestment from CalPERS and Israel, also expressing concern about homelessness; Aaron McKenna supported the city's purchase of land for disc golf; Gracie voiced concerns about the planned removal of a homeless encampment without sufficient housing solutions and also advocated for divestment; Susan Parsons expressed gratitude for the council's work while also expressing concern about disruptive public comment; Ellen P. thanked previous speakers advocating for divestment from war and genocide; JoAnne McGarry suggested exploring methane capture for energy at the wastewater treatment plant; and Merritt Perry expressed concern about rising costs of the wastewater treatment plant project.

In other matters, the council approved the agreement with Humboldt Made to host the Arcata Friday Night Market in September 2025. This market will feature local breweries, wineries, and distilleries, along with 60 vendors representing farmers, artists, musicians, food vendors, and community organizations. Plaza businesses will have the option of a free booth. The council also approved all items on the consent calendar except for the minutes of the June 18th, 2025, City Council meeting, which will be reviewed at a later date.

Mayor Stillman, Vice Mayor Wyatt, Council Member Shafer, and Council Member Atkins Salazar were present at the meeting. Council Member Matthews was absent. The meeting, which included both in-person and remote participants, lasted approximately 50 minutes. The full meeting video and agenda are available online at http://arcataca.iqm2.com/Citizens/default.aspx.

The Arcata City Council will continue its discussion on the TOT revenue-sharing program and the June 18th meeting minutes at a future meeting. Residents are encouraged to attend these meetings or access meeting materials online to stay informed and participate in local government affairs.