In its 2020 budget document, the city said the other half of the money will be used by the city for “tourism-related capital and programming initiatives.”

The city aims to raise around $58 million from the tax by 2023, and thus far used the MAT levy to fund at least 10 projects in Mississauga, including the Avro Arrow replica project in Paul Coffey Park.

Butt said that since funding for the new entity is collected by hotels from their customers, “they are the most important stakeholders in the tourism sector.”

“Tourism Mississauga must be a fully independent, non-political corporation that is operated by a stakeholder board of directors and accountable to the very sector that's funding its existence,” he said.

At the Feb. 26 council meeting, Shari Lichterman, who is the city’s director of recreation, was appointed CEO of Tourism Mississauga. The board of the organization will also have two councillors and up to 12 external stakeholders.

Council also voted to approve a two-year funding agreement with Tourism Mississauga, with the option to extend it to five years.

According to an email from Mississauga spokesperson Catherine Monast, roughly $10.5 million is owing to Tourism Mississauga from MAT tax proceeds in 2018 and 2019.

Natalie Hart from the Malton BIA said the city having responsibility for the funds in the early stages of new organization would be “a crucial part of the development of the tourism strategy.”

She also said the city’s management could help balance the work of the organization across the city and tourism sectors.

“We need to ensure that the board does not become a fiefdom of particular stakeholders,” she said.