Naming rights deal possible for OKC convention center as part of maintenance funding

A proposal to increase Oklahoma City’s hotel tax was questioned Tuesday at a city council presentation where the head of Visit OKC was asked about whether the funds could be better spent helping historic districts.

Voters may be asked this summer to approve changing Oklahoma City’s hotel tax from 5.5% to 9.25%, an increase of 26% over the current total charges, as the conventions and visitors bureau looks to boost marketing and event incentives tied to new venues and attractions.

Zac Craig, president of Visit OKC, told the city council the largest portion of the funding increase is focused on marketing and promotion of tourism and sponsorship funds with the remainder being used to fund capital improvements at the Oklahoma City Convention Center and the OKC Fairgrounds.

Discussions, he said, date back to when ground was first broken for the convention center in 2018.

“I spoke to a lot of key hotel stakeholders,” Craig said. “They saw the importance then, and they see the importance now. The majority of them are in support of this.”

More: Tourism destination planned by Chickasaw Nation has a new name: the Horizons District

How would the increased funds be spent?

The proposed increased funding is broken into four categories:

• 75% for tourism and convention promotion.

• 13.3% for event sponsorships.

• 6.7% for fairgrounds capital improvements.

• 5% for convention center improvements.

In addition to the proposed hotel tax increase, City Manager Craig Freeman revealed talks are underway with a potential naming rights buyer that could provide more funding for upkeep at the convention center.

“We are targeting $500,000 a year to fund capital improvements at the convention center,” Freeman said. “This (proposed new hotel tax funding) is a little north of that.”

Councilmembers Nikki Nice and James Cooper questioned why other needs can’t be addressed with the proposed tax hike.

“It’s unfortunate we’re just picking two places to fund improvements,” Nice said. “I understand these are places of attraction. But I think about the ways right now we’re trying to bring (funding) for a couple of our MAPS 4 facilities, particularly the Clara Luper Civil Rights museum.”

Nice and Cooper did not indicate they oppose asking voters to decide whether to increase the hotel tax.

“I do see the need to move to a higher rate,” Cooper said. “When I see comparables to other cities, this makes sense to me. This part, no-brainer.”

Cooper also acknowledged the convention center “is a big deal” and a significant investment that must be maintained. But he asked why upkeep isn’t being discussed for the city’s Main Street districts like Paseo, 39th Street, the Asian District, Uptown, Britton, Windsor, the Stockyards and Capitol Hill.

“They are the places that tourists tell us they go to when they come here,” Cooper said. “They are the destinations, the places our own residents take visitors upon their arrival to the city.”

Cooper asked for further discussion on how to fund upkeep and promotion of the districts before the council holds its final vote on May 21 on whether to schedule an election for Aug. 27.

“I think all your points are warranted,” Craig said. “We have a great relationship with our district managers. These are hidden gems, and the challenge is they are hidden. The Paseo shouldn’t be hidden. It shouldn’t be a surprise to visitors. We need them to know that when they come to Oklahoma City, they need to visit Paseo.”

This article originally appeared on Oklahoman: Naming rights deal, hotel tax proposed for boosting OKC tourism