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II. WHY RENEW THE TRI- VALLEY TOURISM BUSINESS IMPROVEMENT DISTRICT? There are several reasons why now is the right time to renew the IVTBID; the most compelling reasons are as follows: 1. The Need to Increase Occupancy The renewal of the TVTBID is a proactive effort to provide supplemental funding beyond that provided by the City. The funding will ensure that adequate financing exists for the investment required to increase occupancy in the lodging industry and be competitive in the conference segment of the tourism market. The investment will cover an expanded marketing and promotional budget needed to reach this market segment. 2. Stable Funding for Tourism Promotion The TVIBID will provide a stable source of funding for consistent tourism promotion efforts. The TVTBID will provide funding for tourism promotion free of the political and economic circumstances that can reduce or eliminate government funding for tourism promotion. 3. An Opportunity for Increasing City Tax Revenues As occupancy rates increase, so too will the City's TOT revenue. With stable public /private funding for tourism marketing efforts, annual occupancy rates should increase significantly as new marketing and sales promotion programs are implemented. Greater occupancy will also produce an increase in sales tax revenues from tourist spending. This represents a substantial return to the City. The renewal of the TVTBID in partnership with the TIVCVB creates a stable funding source tied directly to tourism promotion. Tri- Valley Tourism Business Improvement District Management District Plan Page 3