Anaheim resort hotel workers hoping to live closer to their jobs may soon benefit from a new influx of cash for workforce housing by way of the city’s tourism district.
The Anaheim City Council Tuesday unanimously backed revamping the Anaheim Tourism Improvement District in order to generate about $3 million next year for housing initiatives.
“[Hotel workers] either live very far…or they are living in conditions that are not helpful to the health of their families,” said Councilmember Norma Campos Kurtz. “There is a great desire of some of those employees to establish themselves in Anaheim, to…become a homeowner [and] part of the community.”
Councilmembers moved forward on a plan to reallocate 9% of ATID funding for housing while expanding the tourism district’s boundaries to include the Viv hotel just outside of the resort.
“It’s going to make a difference in people’s lives,” Campos Kurtz added.
Originally established in 2010, the tourism district collects a 2% assessment from 93 hotels in the resort and platinum triangle areas of the city. ATID revenue for this year is projected to be $32 million.
The funds have traditionally gone toward marketing, promotion and transportation needs.
Now, the housing plan aims to boost a program for first-time homeowners, provide funds for one-time emergency payments to avoid eviction and help build workforce housing stock in the city for employees of assessed hotels.
In September, the City Council signaled its intent to modify aspects of the tourism district ordinance and gave hoteliers time to lodge formal protests.
By Tuesday’s meeting, only five hotels registered a formal protest against the plan — the Anaheim Marriott the largest among them — which fell short of the threshold needed to derail it.
Joshua Wang, the owner of the Quality Inn and Suites at the Park near Disneyland, spoke out against the proposed tourism district changes at the council meeting.
“I’m against [raising the] ATID tax,” he said. “Price is very, very sensitive. Instead of raising only our zone areas hotels…why not raise every hotel’s…taxes at the same time?”
Councilmember Natalie Rubalcava offered a quick reminder that the modifications would not increase the tourism district’s assessment, only reallocate where a portion of existing funds will go.
“We’re not trying to hurt the hotel industry,” she said. “This is really just to help with housing initiatives for your employees.”
Last year, the Walt Disney Co. pledged on its own to donate $30 million into a newly established local housing trust fund in Anaheim for general affordable housing projects.
The Anaheim Chamber of Commerce, an organization seeking to reform itself, raised other concerns in a letter sent to councilmembers before the meeting.
Dara Maleki, the chamber’s interim chief executive, applauded the planned creation of a housing committee as part of the modifications but cautioned compliance with state open meeting laws and the California Public Records Act remained a standing issue for the tourism district.
Mayor Pro Tem Natalie Meeks raised the issue during the council’s discussion and received confirmation that the city’s legal position was the ordinance was consistent with state law and a state audit’s recommendations.
After the clarification, councilmembers voted 7-0 to approve a resolution and amendment to the ATID ordinance.
“This is really just an example of our resort district partners really stepping up and becoming partners with us as we take a multipronged approach,” said Councilmember Carlos Leon. “It’s another tool in the toolbox for the city. It’s a great example that’s going to help…future residents of our city, the workers that really make the resort district and our city run.”
A second procedural vote is scheduled for Dec. 9 to formally adopt the modifications.
Once passed, Anaheim’s local housing trust fund is expected to get its first annual funding boost from the tourism district by February.