December 21, 2001

University to Pay City After Turning Hotel Into Dorm

The University of California at Santa Cruz has agreed to make a payment to the city after turning one of Santa Cruz's few hotels into a dormitory. The Holiday Inn had been a main source of hotel-occupancy taxes.

University officials said the $75,000 payment was not meant to make up for the loss of tax revenue, but was intended for fire and police protection near the hotel and in the rest of the city. Elizabeth M. Irwin, a university spokeswoman, called it a one-time payment, but said,