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Home My WebLink About2020-06-23 - RESOLUTIONS - TO CONTINUE THE SC TOURISM MARKETING DISTRICT (BUS (2)RESOLUTION NO.20-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, TO CONTINUE THE SANTA CLARITA TOURISM MARKETING DISTRICT (BUSINESS IMPROVEMENT AREA) AND THE HOTEL TOURISM MARKETING BENEFIT ZONE IN THE CITY WHEREAS, the City of Santa Clarita (City) is a general law City organized and existing under the laws of the State of California; and WHEREAS, the Parking and Business Improvement Area Law of 1989, Section 36500 et seq. of the Streets and Highways Code of the State of California, authorizes the City to levy assessments on businesses within a parking and business improvement area which is in addition to any assessments, fees, charges, or taxes imposed in the City and to use such proceeds for the benefit of businesses within such parking and business improvement area pursuant to said Parking and Business Improvement Area Law of 1989 (1989 BID Law); and WHEREAS, the City Council of the City on May 25, 2010, pursuant to Ordinance No. 10-4 established the Tourism Marketing District (TMD) and a Hotel Tourism Marketing Benefit Zone (Benefit Zone); and WHEREAS, pursuant to Section 36533 of the 1989 BID Law, the Advisory Board for the TMD has caused a report (Annual Report) to be prepared and filed with the City Clerk, which describes the improvements and activities for which assessments are to be levied and collected for the Fiscal Year (FY) 2020-2 1; and this Annual Report has been presented to the City Council for review and approval; and WHEREAS, the City Council intends to levy and collect assessments within the Benefit Zone of the TMD for FY 2020-21 and has previously set a public hearing to be held by the City Council on the levy of the annual assessment for FY 2020-21 pursuant to Section 36535 of the 1989 BID Law; and WHEREAS, the City Council conducted the aforementioned public hearing on June 23, 2020, and has considered the staff report for the item and the public testimony provided during the public hearing. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The above recitals are true and correct. SECTION 2. Pursuant to the 1989 BID Law, the City Council hereby declares its intention to levy and collect assessments on businesses within the Benefit Zone of the TMD for FY 2020-2 1, commencing July 1, 2020 and ending June 30, 2021, to pay for the improvements, services and activities authorized by Ordinance No. 10-4 and described in the Annual Report filed with the City Clerk. Page 1 of 5 SECTION 3. For FY 2020-21, the boundaries of the TMD which includes all of the real property within the City; and the Benefit Zone which is inclusive of the hotels now operating in the City and identified and attached hereto as Exhibit A, shall be unchanged from the boundaries established by Ordinance No. 10-4. SECTION 4. The City Council proposes to annually levy assessments against all businesses in the Benefit Zone in accordance with the proposed system of assessments as set forth on Exhibit B, and as such has determined that the assessments on newly established hotels shall commence immediately upon the first day of operation and after the public hearing for inclusion of such property. SECTION 5. That the proposed uses of the revenues derived from charges levied against businesses in the Benefit Zone for FY 2020-21 generally include, but are not limited to, the following: a) Promoting the identity of Santa Clarita through financial support of key regional and national events that support tourism and result in an economic impact; and b) Developing and implementing a destination marketing strategy and promotions targeting potential hotel guests; and c) Developing and undertaking an advertising and public relations program focusing on the business and leisure travel trade; and d) Subsidization of high quality, high -economic impact events; and e) Annual operation expenses including, but not limited to, annual district administration functions and expenses, printing, postage, and meetings; and f) Support and funding of the Summer Trolley program; and g) Attendance at key meetings and consumer trade shows. SECTION 6. In addition to any assessments, fees, charges, or taxes imposed otherwise in the City, the City Council proposes to levy assessments against businesses in the Benefit Zone in FY 2020-21 for the purpose of funding the programs, activities, and services that will promote the City and hotels as a tourist destination. A description of the proposed system of assessments is set forth on Exhibit B, attached hereto and incorporated herein by this reference. SECTION 7. The City Council hereby approves the Annual Report for FY 2020-21 as submitted to the City Clerk or as amended herein by City Council direction. Said Annual Report as submitted or amended provides a full and sufficient description of the improvements, services, and activities to be funded by the assessments for FY 2020-21; the boundaries of the TMD and the Benefit Zone within the TMD, and the proposed assessments to be levied upon the businesses Page 2 of 5 within the TMD for that fiscal year. Said report as submitted or amended is by reference made part of this resolution. PASSED, APPROVED AND ADOPTED this 23`d of June 2020. MAYOR ATTEST: CITY CLERK DATE: -7fi �Q a�) STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 20-48 was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 23rd day of June, 2020, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 1 Weste, Kellar, McLean, Miranda, Smyth None None Page 3 of 5 CITY CLERK EXHIBIT A SANTA CLARITA TOURISM MARKETING DISTRICT HOTEL TOURISM MARKETING BENEFIT ZONE Hotels in Fiscal Year 2020-21 The following is a list of hotels now operating, or proposed to operate, in the Tourism Marketing District and specifically the Hotel Tourism Marketing Benefit Zone for FY 2020-21. Best Western Valencia Inn 27413 Wayne Mills Place (Assessor #--2861071009) Santa Clarita, CA Holiday Inn Express 27513 Wayne Mills Place (Assessor #--2861071008) Santa Clarita, CA Courtyard by Marriott 28523 Westinghouse Place (Assessor #--2866034080) Santa Clarita, CA Embassy Suites 28508 Westinghouse Place (Assessor #--2866034097) Santa Clarita, CA Hyatt Regency Valencia 24500 Town Center Drive (Assessor #--2861062020) Santa Clarita, CA 1 Page 4 of 5 I EXHIBIT B SANTA CLARITA TOURISM MARKETING DISTRICT HOTEL TOURISM MARKETING BENEFIT ZONE Proposed System of Assessment (Methodology) The proposed system of assessments is designed to generate revenue from hotels in the City to provide a method of funding public programs and activities that will promote the City and hotels as a tourist destination. The City's hotels comprise the Benefit Zone and are the only business proposed to be assessed. An annual assessment is to be levied against hotels based on the benefits they derive from the program of activities. Businesses located outside the Benefit Zone (i.e., all non -hotel businesses) would not be assessed as they derive only, at most, an indirect benefit from the program of activities. Any modification to the Benefit Zone or program of activities for which the assessments are proposed to be levied would be subject to notification of all businesses within the Area and a public hearing before the City Council. At such public hearing, the City Council shall hear all protests and receive evidence, including written protests, for and against such modification. Each business in the Benefit Zone shall pay a charge of 2 percent of total room rents charged and received from transient hotel guests who do not make the hotel their principal place of residence. Once the system of charges is established, it cannot be changed without written notice to all businesses in the Area and a public hearing held by the City Council. At such public hearing, the City Council shall hear all protests and receive evidence, including written protests, for and against such changes. Charges will be collected by the City of Santa Clarita, with the funds being remitted to a special fund of the City for expenditure in accordance with its adopted annual budget as presented by the Advisory Committee appointed by the City Council. Page 5 of 5