Orange County prosecutors are looking into how the Greater Irvine Chamber of Commerce spent millions of dollars in tax money earmarked for promoting hotels and tourism.
Local hoteliers, suspecting that too much of the money went to chamber overhead, persuaded the city early last year to create a special board to take over management of the taxes.
Documents obtained by Southern California News Group show that Deputy District Attorney Avery T. Harrison in November asked the city for about 20 years worth of records regarding the Hotel Improvement District, established in 2002 to generate taxes for a tourism bureau. The chamber was brought in to administer the bureau, called Destination Irvine, which promoted hotels and tourism in Orange County’s third most populous city.
The district attorney’s office also is seeking, among other things, reports generated by the chamber on how it specifically proposed to use the funds, generated by the 2% tax on hotel stays..
Hotel groups had alleged that the chamber wouldn’t share with them how it was administering the money. The chamber responded that it released audited financial statements every year, showing that the overhead was “appropriate.”
News of the apparent probe, first reported by the Voice of OC, came on the heels of the chamber’s announcement Jan. 9 that Chief Executive Officer Bryan Starr left this month after seven years to “pursue a new opportunity.”
“Bryan’s service has had an undeniable impact on Irvine’s economy,” said the announcement on the chamber’s website. “His work helped bring global companies — and their jobs and investment — to Irvine. … We look forward to seeing the impact Bryan will have in his future role and wish him well.”
Starr, who could not be reached for comment, earned $238,923 in total compensation in 2021, according to the chamber’s tax filing with the Internal Revenue Service.
The district attorney’s office would not confirm or deny that it…
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