The Medford City Council is considering a significant increase in the transit lodging tax, proposing to raise the maximum rate from 11% to 13%. This tax applies to short-term rentals like hotels and Airbnbs, not long-term residential rentals. The discussion stems from plans for the Creekside Quarter, a proposed public-private partnership aimed at revitalizing downtown Medford through a mix of commercial and residential developments.

City Attorney Eric Mitten explained that the increase in the lodging tax rate would require a vote from the city's electorate, as outlined in the city charter. The council is exploring this tax hike as a potential funding source for the Creekside Quarter project, which includes ambitious plans for a new park, baseball stadium, and conference center.

Mitten emphasized that the proposal is still in its early stages, with ongoing discussions among developers and stakeholders. He noted that if the council decides to move forward, they will also consider establishing guidelines on how the increased tax revenue would be utilized, including possible limits on the increase and sunset provisions.

The council is expected to draft language for these guidelines, which will be refined in future study sessions. The ultimate goal is to present a clear proposal to voters in November, ensuring transparency about how the funds will be allocated if the tax increase is approved. This initiative could play a crucial role in shaping the future of downtown Medford, making it a focal point for redevelopment efforts.