(CORRECTION: An earlier version of this article incorrectly said Franklin County officials anticipate losses of occupancy tax revenue in the millions of dollars due to the coronavirus pandemic. They anticipate multi-million-dollar losses in overall county revenue, including sales tax. Occupancy tax losses alone are not expected to be in the multi-millions. The Enterprise regrets the error.)

—

SARANAC LAKE — Franklin County has temporarily suspended its new contract with the Franklin County Local Development Corporation in anticipation of a loss of revenue in the millions of dollars as the coronavirus outbreak continues.

After five years of contracting with the Lake Placid-based Regional Office of Sustainable Tourism, the Franklin County Board of Legislators decided late last year to move the county’s tourism marketing contract to the nonprofit LDC, which is associated with the county Industrial Development Agency.

The contract, paid for out of occupancy tax revenue from hotels and short-term rental units, started in February with a two-year term. The LDC was expected to get 5% of the total occupancy tax revenue collected by the county, or a minimum of $473,000.

The county anticipates a loss of total revenue this year of “several million dollars,” according to a statement from the county legislature. That revenue loss could be higher or lower, depending on how long the social distancing and isolation guidance lasts amid the coronavirus outbreak.

With that projection in mind, the legislature decided on Thursday to suspend the county’s contract with LDC.

“It is our intent to move forward with tourism efforts once we have a better understanding of anticipated occupancy tax collection within the county,” the statement reads. “This difficult decision was made in the best interest of all parties including the impact to the taxpayers. We look forward to the future where we can promote our beautiful natural resources and wonderful amenities to our visitors.”