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HomeMy WebLinkAbout2022-06-14 - RESOLUTIONS - TMD INTENT FY 22 23RESOLUTION NO. 22-31 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 of Santa Clarita 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 Fiscal Year (FY) 2022-23, 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 2022-23 and by this resolution fixes a time and place for a public hearing to be held by the City Council on the levy of the annual assessment for FY 2022-23 pursuant to Section 36535 of the 1989 BID Law. NOW THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The above recitals are all 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 2022-23, which commences July 1, 2022, 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 4 SECTION 3. For FY 2022-23, 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 2022-23 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 Ivey meeting 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 Fiscal Year 2022-23 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 2022-23 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 2022-23; the boundaries of the TMD and the Benefit Zone within the TMD, and the proposed assessments to be levied upon the businesses within the TMD for that fiscal year. Said report as submitted or amended is by reference made part of this resolution. Page 2 of 4 --- SECTION 8. A public hearing concerning the FY 2022-23 levy of annual assessments for the TMD Benefit Zone will be held on June 28, 2022, at 6:00 p.m., or as soon thereafter as the matter can be heard at the City Council's regularly held meeting, located at 23 920 Valencia Boulevard, Santa Clarita. At the public hearing, written and oral protests may be presented to the City Council. The form and manner of protests shall comply with Sections 36524 and 36525 of the 1989 BID Law, which generally establish that if written protests are received from the owners of businesses that will pay 50 percent or more of the assessments to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to levy the proposed assessment shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvement or activity, those types of improvements or activities shall be eliminated. Every written protest shall be filed with the Clerk at or before the time fixed for the public hearing. The City Council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. SECTION 9. Pursuant to Section 36534 of the 1989 BID Law, the City Clerk is hereby directed to give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City not less than seven days before the public hearing scheduled for June 28, 2022. PASSED, APPROVED, AND ADOPTED this 141" day of June 2022. r � Afvez MAYOR ATTEST: L1kKUA441C4*t- CITY CLERK DATE: Page 3 of 4 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. 22-31 was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 141h day of June 2022, by the following vote: AYES: COUNCILMEMBERS: Smyth, McLean, Miranda, Gibbs, Weste NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None CITY CLERK Page 4 of 4 Exhibit A SANTA CLARITA TOURISM MARKETING DISTRICT HOTEL TOURISM MARKETING BENEFIT ZONE Hotels in Fiscal Year 2022-23 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 2022-23. Best Western Valencia Inn 27513 Wayne Mills Place Santa Clarita, CA 91355 Courtyard by Marriott 28523 Westinghouse Place Santa Clarita, CA 91355 Embassy Suites 28508 Westinghouse Place Santa Clarita, CA 91355 Holiday Inn Express 27413 Wayne Mills Place Santa Clarita, CA (Assessor #--2861071008) (Assessor #--2866034080) (Assessor #--2866034097) (Assessor #--2861071011) Homewood Suites I Hampton Inn 28700 Newhall Ranch Road (Assessor #--2866035007) Santa Clarita, CA 91355 Hotel Lexen 24219 Railroad Avenue Santa Clarita, CA 91321 Hyatt Regency Valencia 24500 Town Center Drive Santa Clarita, CA 91355 (Assessor #--2831018040) (Assessor #--2861062020) SpringHill Suites I Residence Inn �. 27413 Wayne Mills Place (Assessor #--2861071010) Santa Clarita, CA 91355 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 3enefit 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.