July 28--The clock is ticking on Fresno's Convention and Visitor's Bureau, which must find a new source of revenue this year or go out of business.

Bureau interim CEO Layla Forstedt, who replaced chief executive Jeff Eben earlier this month, has only about five months to convince area hotels and motels to tax themselves to fund a new tourism marketing effort.

She and other CVB officials say they are seeing encouraging signs.

About 50 officials from Fresno-area hotels and motels met at the downtown Radisson Hotel on Thursday to begin designing a "tourism business improvement district" that could generate several million dollars annually for marketing.

"It was a positive meeting," CVB board Chairman Paul Turner said. "I believe is very doable and I think it will be successful."

In the fiscal year that ended June 30, the Convention and Visitor's Bureau received most of its funding -- $1.2 million -- from the city of Fresno. But Fresno Mayor Ashley Swearengin, struggling to balance her budget, cut the city's annual contribution beginning July 1 to $450,000 -- enough to operate the bureau for six months.

With the city cutting its support, Eben decided to leave the bureau to become principal of an elementary school in Racine, Wis. His last day at the CVB was July 16.

The bureau and its supporters are now trying to create a tourism business improvement district, in which hotels and motels pay assessments to fund their own convention and tourism-marketing entity.

If the effort succeeds, the CVB probably would be absorbed into the new district. If it fails, the bureau might close due to lack of funding. The city agreed to contribute another $150,000 to wind down operations if the bureau has to close.

The bureau is pursuing grants and corporate sponsorships, which could keep it alive even if the tourism district effort fails, Forstedt said. But, she added, the focus is on the district.

Forstedt said it's too early to discuss details of the tourism district. Officials from Thursday's meeting have formed subcommittees, each to come up with its own ideas for the organization, she said. Everyone will then work on a single plan, she said.

Among the key questions: What are the district's boundaries, if any? And what will the assessment look like -- a percentage of gross room rental, for example, or a specific charge (such as $1) per room night?

Formation of the district would require majority support of participating business owners, the ballots being weighted by the size of assessment. The business owners would ask a local government entity such as the board of supervisors to form the district.

Officials at several tourism districts in the state said creating a district can take nine months or more, but added that it could be done in less time. Supporters of Fresno's district said they are confident they can meet the January deadline.

Forstedt said hotels and motels from Fresno, Clovis and Sanger have shown the most interest. She said a tourism district could generate up to $2.5 million for marketing, which still would be less than the budgets of similar districts in Sacramento and Long Beach.

Individual hotels and motels have their own marketing arms, Forstedt said. But no entity other than the CVB sells the city and the region, she said.

Tourism is a $1 billion industry in Fresno County. The convention industry is pivotal to Fresno's economy and Swearengin's plans to revitalize downtown.

To have the CVB die without something stronger and more durable taking its place "would be tragic for the community," Forstedt said.

But hotels and motels, and the customers they serve, are suffering from the recession, as well.

Amy McCamey, general manager of SpringHill Suites by Marriott in north Fresno, said most officials at Thursday's meeting supported the tourism district. She said no one likes adding another cost to their customers' bills.

But, she added, the downside to doing nothing -- the possible death of the CVB, the likely poaching of tourism-convention business by well-funded competitors -- would be devastating.

"I don't see how anybody could be against" the district, McCamey said.

Radisson general manager Steve Klein is more cautious. He said he understands all sides of the debate.

"The is still in its infancy," Klein said. "It's too early" to gauge its support.

The columnist can be reached at ghostetter@fresnobee.com or (559)441-6272.

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