By Tara Fischer

Staff Writer

(March 19, 2026) The Town of Berlin appears likely to adopt an ordinance dedicating funds collected from an increase in the hotel room tax to making repairs to municipal and quasi-public parking lots.

At a Town Council meeting last week, Councilmember Jack Orris presented his proposal to create a new budget line item for the Town of Berlin’s parking lot maintenance.

Under Orris’ idea, the municipality will use funds secured through a countywide policy that increased the hotel room tax by 1%. The new fee took effect on Jan. 1 of this year and raised the rental tax rate on all short-term rentals (four months or less) in Worcester County from 5% to 6%.

According to Orris, the new rate for Berlin is projected to yield around $22,000 annually. While the town currently only has one hotel, if more lodging sites are created, that figure “will just grow much quicker,” the councilmember said.

The proposal comes after an update several weeks ago from the town’s parking committee, which reported that they have been unable to reach a consensus on how to pay for about $1 million in lot repairs and maintenance in the downtown business district.

At the Feb. 9 mayor and Town Council meeting where the update was presented, Councilman Steve Green, a member of the parking group, along with Berlin Mayor Zack Tyndall and Councilman Jay Knerr, said that the municipality faces over $1 million in infrastructure needs for municipality-owned and town-used lots. Green emphasized that the required work is not just resurfacing but also underlying structural issues.

 “We keep throwing ideas out … and we keep running into opposition,” Green said at last month’s meeting. “…We have all tried very hard. We are back to no solution at this point.”

Suggestions have included paid parking, paid parking only during events, increased business license fees in exchange for no paid parking, an arts and entertainment fee on all sales, and voluntary donation campaigns.

However, none of the ideas had received enough support from committee members or business merchants to proceed.

Now, however, the town may begin to move in some sort of direction.

Tyndall and members of the council were receptive to Orris’ hotel room tax recommendation.

“I think it’s a great idea,” the mayor said. “We have no way to pay for parking, currently. We truly don’t need the additional money, but we do need it for parking. We just don’t need it blanketly in the general fund.”

Green also pointed to the lease agreement the town entered into with the Esham family for a parcel of property at the corner of West Street and Washington Street. The arrangement began in early 2025 to establish a municipal parking lot to grow the downtown business district and address parking shortages.

Per the lease, rent for years one, two and three is $30,000. The first two years, totaling $60,000, were paid for by funds from the American Rescue Plan Act, also known as the COVID-19 Stimulus Package.

Rent for years four and five will be $35,000 and rent for years six through 10 will increase 3% annually.

Given the ranging parking variables, Green noted that using funds from the hotel room tax increase for parking is “a great idea.”

“We have different situations there,” he added. “We have a lease agreement with the Eshams. I do feel some accountability to make sure that the lease isn’t paid for by our property taxes. So, I like that as a potential revenue …I support the concept … This is tourism paying for tourism, and I really like the concept.”

A draft ordinance is expected to be reviewed at an upcoming meeting of the mayor and Town Council.