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Home My WebLink About2024-05-14 - AGENDA REPORTS - TMD BENEFIT ZONE7 Agenda Item:6 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: May 14, 2024 AMENDMENT TO THE BENEFIT ZONE OF THE SANTA CLARITA SUBJECT: TOURISM MARKETING DISTRICT TO INCLUDE ADDITIONAL HOTELS DEPARTMENT: Economic Development PRESENTER: Evan Thomason RECOMMENDED ACTION City Council: 1. Adopt a resolution to declare intention to amend the Tourism Marketing Benefit Zone of the Santa Clarita Tourism Marketing District to designate additional hotels as receiving benefits thereunder. 2. Set a public hearing for May 28, 2024, at a time and place to hear comments on this proposed action. 3. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval. BACKGROUND In conformance with the Parking and Business Area Law of 1989, the City of Santa Clarita (City) City Council adopted Ordinance No. 10-4 (Ordinance), enacting Chapter 3.36 of the Santa Clarita Municipal Code, and established a Business Improvement Area (BIA) in the City designated as the Tourism Marketing District (TMD). This Ordinance permits the City to levy assessments on businesses within the BIA and restricts revenues so they may only be used for the benefit of the businesses within the defined area. The TMD encompasses a Tourism Marketing Benefit Zone (Benefit Zone), where hotels located within the Benefit Zone are to pay an assessment of two percent of total room rents charged and received from transient hotel guests. Only those designated hotels included within the Benefit Page 1 Qbdlfu!Qh/!6: 7 Zone are assessed. Currently, the City has five hotels operating within the TMD that are a part of the Benefit Zone: Best Western Valencia Inn 27413 Wayne Mills Place Courtyard by Marriott 28523 Westinghouse Place Embassy Suites 28508 Westinghouse Place Holiday Inn Express 27513 Wayne Mills Place Hyatt Regency Valencia 24500 Town Center Drive In recent years, four new hotels have been constructed and commenced business within the City limits, and a fifth new hotel is anticipated to be open by summer 2024. As part of the Conditions of A Benefit Zone, which allows the hotel to be included in the tourism advertising efforts for Santa Clarita. By adopting the resolution, the boundary of the Benefit Zone would be amended by the addition of the following new hotels to be included as part of the TMD as receiving benefits: Homewood Suites Santa Clarita 28700 Newhall Ranch Road Hotel Lexen Newhall 24219 Railroad Avenue Springhill Suites Valencia 27413 Wayne Mills Place Residence Inn Valencia 27413 Wayne Mills Place Hampton Inn Santa Clarita 28700 Newhall Ranch Road All revenue received from the method of assessment go into the TMD Fund, which is used for programs and activities that promote the City as a tourist destination and to generate economic activity. The Ordinance established an Advisory Board, appointed by the City Council, which provides recommendations as to the best use of TMD funds. The TMD Advisory Board includes a representative from each of the participating hotels, along with two City representatives selected by the City Manager. The Ordinance that guides the use of funds, with recommendations from the TMD Advisory Board, is to be used for the following purposes: 1. 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 2. Developing and implementing a destination marketing strategy and promotions designed to increase visitor attraction to Santa Clarita, including overnight visits; and 3. Developing and undertaking an advertising and public relations program focusing on the business and leisure travel trade; and 4. Annual operation expenses including, but not limited to, annual district administration functions and expenses, consultants, printing, postage, and meetings. Upon approval of the recommended actions, the proposed changes will be brought back to the City Council for a public hearing, introducing an ordinance on May 28, 2024, followed by a second reading of the ordinance on June 11, 2024. Page 2 Qbdlfu!Qh/!71 7 ALTERNATIVE ACTION Other direction as determined by the City Council. FISCAL IMPACT All funds received from the two percent method of assessment go into revenue account 360- 402406 (Tourism Marketing District - Assessment) and are only to be used for the purposes of programs and activities that promote the City of Santa Clarita as a tourist destination. There is no fiscal impact to the General Fund associated with this item. ATTACHMENTS Resolution Page 3 Qbdlfu!Qh/!72 7/b RESOLUTION NO. 24-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, BENEFIT ZONE OF THE SANTA CLARITA TOURISM MARKETING DISTRICT TO DESIGNATE ADDITIONAL HOTELS AS RECEIVING BENEFITS THEREUNDER WHEREAS, on May 25, 2010, pursuant to the Parking and Business Area Law of 1989, Section 36500 et seq. of the Streets and Highways Code of the State of California, the City Council conducted proceedings, adopted Ordinance No. 10-4 (Ordinance), enacting Chapter 3.36 of the Santa Clarita Municipal Code, and established a Business Improvement Area (BIA) in the City of Santa Clarita (City) designated as the Tourism Marketing District (TMD), and; WHEREAS, the boundaries of the Tourism Marketing Benefit Zone (Benefit Zone) shall include hotels operating in the TMD pursuant to proceedings for inclusion; and WHEREAS, the City has determined that subsequent to the establishment of the TMD, five new hotels have been constructed and commenced business, or to commence business within 60 days hereof, within the TMD; and WHEREAS, pursuant to Streets and Highways Code Section 36341, the City Council shall modify the boundaries of the area by adopting an ordinance after holding a public meeting and hearing on the proposed modification; NOW THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. That the recitals set forth above are true and correct and incorporated herein as a substantive part of this resolution. SECTION 2. Pursuant to Streets and Highways Code Section 36500 et seq., the City Council declares its intention to amend the TMD by modifying the boundaries of the Benefit Zone within the TMD by adding additional new hotels therein. SECTION 3. The City Council hereby sets Tuesday, May 28, 2024, at 6:00 p.m., or as soon thereafter, as practicable as the date for the public meeting on the proposal to amend the TMD. Said public meeting shall be held in the Santa Clarita City Council Chambers at City Hall, 23920 Valencia Boulevard, Santa Clarita, California, and shall be for the purpose of allowing public testimony on the proposal to amend the TMD. At the public meeting, the testimony of all interested persons, for or against the amendment of the TMD or any of the matters included in the amendment, will be heard. Buubdinfou;!Sftpmvujpo!!)Bepqujpo!pg!b!Sftpmvujpo!pg!Joufoujpo!Upvsjtn!Nbslfujoh!Ejtusjdu!Psejobodf* SECTION 4. Written and oral protests to the expansion of the boundaries of the Benefit Zone by adding additional hotels may be made at the public hearing in the form and manner prescribed in Sections 36524 and 36525 of the California Streets and Highways Code. At the public hearing, the City Council must consider oral and written protests. If written protests meeting the requirements of Section 36524 of the Streets and Highways Code are received (and Page 1 of 2 Qbdlfu!Qh/!73 7/b not withdrawn) from less than 50 percent of the owners of businesses in the TMD, then the City Council may amend the boundaries of the Benefit Zone. SECTION 5. The City Clerk is hereby directed to provide joint notice of the public meeting and public hearing on the proposed amendment to the TMD by publishing this Resolution of Intention in a newspaper of general circulation in the City once, for at least seven days before the public hearing. SECTION 6. Pursuant to Streets and Highways Code section 36523(b), within seven days of adoption of this Resolution of Intention, the City Clerk is hereby directed to mail a complete copy of the resolution to each business owner in the territory of the TMD. SECTION 7. This resolution shall become effective immediately upon its adoption. SECTION 8. The City Clerk shall certify to the adoption of this resolution. PASSED, APPROVED, AND ADOPTED this ___ day of _________, 2024. ______________________________ MAYOR ATTEST: _______________________________ CITY CLERK DATE:__________________________ 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. 24- was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the ____ day of _____ 2024, by the following vote: AYES: COUNCILMEMBERS: Buubdinfou;!Sftpmvujpo!!)Bepqujpo!pg!b!Sftpmvujpo!pg!Joufoujpo!Upvsjtn!Nbslfujoh!Ejtusjdu!Psejobodf* NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ______________________________ CITY CLERK Page 2 of 2 Qbdlfu!Qh/!74