LOVELAND - With the new 3 percent lodging tax set to go into effect on Jan. 1, Loveland City Council now needs to create the Community Marketing Commission that will recommend how to spend the revenues.

The seven-member volunteer commission is part of Initiative 2B, approved by voters in November. Its purpose is to advise city council on using lodging tax collections to market the city to attract conferences and tourists to Loveland as well as sponsor community events.

Representatives from Engaging Loveland, the Loveland Chamber of Commerce & Visitors Center, Downtown Loveland Association, The Ranch, Embassy Suites and the local lodging industry -- organizations that were part of the Building a Better Loveland Committee instrumental in passage of 2B -- have submitted their recommendations for the new commission in a memo set for discussion at Tuesday's council meeting.

The first recommendation is for council to make appointments to the commission by Feb. 1, from applications submitted by Jan. 15. The first monthly collection of the tax will be made Feb. 20, based on January receipts at Loveland's hotels and motels. The tax is expected to generate $400,000 annually.

"We're looking for quick implementation of getting the commission in place," explained Brian Willms, president and CEO of the Loveland Chamber and one of the authors of the memo. "We're not saying they should start spending the money right away, but they should begin forming a strategy for how to spend it."

Once the commission is in place, the memo suggests preparing an interim Strategic Marketing Plan for council consideration by April 15. The plan should show how to allocate the first $200,000 collected in 2010.

"The funds shall be allocated: 50 percent for local existing community events, 25 percent for general marketing and collateral pieces, and 25 percent to contract conference/event business," according to the memo.

It further recommends that only established and existing events be considered for distribution of funds by summer 2010, and allocation of the funds in future years should be based on the decision of the commission.

A multi-year Strategic Marketing Plan beginning in 2011 would be due to council in the fall of 2010.

Willms said he has already heard from several people who are interested in serving on the commission, and thinks council will have a decent pool of applicants to choose from.

Council meets at 6:30 p.m. in the City Council Chambers at 500 E. Third St. in Loveland.