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Home My WebLink About2024-05-28 - AGENDA REPORTS - TMD BENEFIT ZONEO Agenda Item: 1 1. CITY OF SANTA CLARITA AGENDA REPORT PUBLIC HEARINGS 14) CITY MANAGER APPROVAL: ' DATE: May 28, 2024 SUBJECT: FIRST READING OF AMENDMENTS TO THE CITY'S MUNICIPAL CODE REGARDING THE BOUNDARIES OF THE BENEFIT ZONE OF THE SANTA CLARITA TOURISM MARKETING DISTRICT BY DESIGNATING ADDITIONAL HOTELS DEPARTMENT: Economic Development PRESENTER: Evan Thomason RECOMMENDED ACTION City Council: 1. Conduct public hearing and introduce an ordinance entitled, "AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING THE BOUNDARIES OF THE BENEFIT ZONE OF THE SANTA CLARITA TOURISM MARKETING DISTRICT BY DESIGNATING ADDITIONAL HOTELS TO BE INCLUDED IN THE BENEFIT ZONE ALL PURSUANT TO SANTA CLARITA MUNICIPAL CODE SECTIONS 3.36.020 (DESCRIPTION OF AREA AND BENEFIT ZONE) AND 3.36.030.A (METHOD OF ASSESSMENT) AND THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989, SECTION 36500 ET SEQ. OF THE STREETS AND HIGHWAYS CODE;" waive reading of the text and consent to reading by title only, as listed on the agenda; and pass to second reading. 2. Authorize the City Manager or designee to execute all contract, amendments, and associated 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 a BIA and restricts revenues so they may only be used for the benefit of the businesses within the defined area. Page 1 Packet Pg. 11 O 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 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 Approval and prior to occupancy, the project applicant agrees to be added to the City's TMD 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 The revenue received from the two percent assessment gets deposited 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. Page 2 Packet Pg. 12 O Upon approval of the recommended actions, the proposed changes will be brought back to the City Council for a second reading of the ordinance on June 11, 2024. 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 Public Hearing Notice Ordinance Page 3 Packet Pg. 13 1.a CITY OF SANTA CLARITA NOTICE OF A PUBLIC HEARING REGARDING AMENDMENTS TO THE SANTA CLARITA MUNICIPAL CODE REGARDING THE BOUNDARIES OF THE BENEFIT ZONE OF THE SANTA CLARITA TOURISM MARKETING DISTRICT BY DESIGNATING ADDITIONAL HOTELS AS RECEIVING BENEFITS THEREUNDER PUBLIC NOTICE IS HEREBY GIVEN: A public hearing will be held before the City Council of the City of Santa Clarita (City) to consider an amendment to the boundaries of the Benefit Zone of the Santa Clarita Tourism Marketing District (TMD) by designating five additional hotels to be included in the Benefit Zone as receiving benefits, pursuant to the City of Santa Clarita's Municipal Code section 3.36.020 (Description of Area and Benefit Zone) and 3.36.030.A (Method of Assessment) and the Parking and Business Improvement Area Law of 1989, Section 36500 ET SEQ. of the Streets and Highways Code. The City Council proposes to annually levy assessments against businesses in the Benefit Zone for the purpose of funding programs, activities, and services that will promote the City and hotels as a tourist destination. Ordinance No. 10-4 established a special fund of the City designated as the TMD Fund, where all revenue derived from the assessments under this chapter is placed, and such funds are only to be used for the purposes specified in this chapter. The public hearing will be held by the City Council in the City Hall Council Chambers, 23920 Valencia Boulevard, first floor, the 28th day of May 2024, at 6:00 p.m. Proponents, opponents, and any interested persons may be heard on this matter at this time. If you wish to challenge the action taken on this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Further information regarding the proposed amendments may be obtained by contacting Evan Thomason, Economic Development Associate, at (661) 286-4167. Dated: May 14, 2024 Mary Cusick, MMC City Clerk Published: The Signal, May 21, 2024 Packet Pg. 14 1.b ORDINANCE NO. 24- AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING THE BOUNDARIES OF THE BENEFIT ZONE OF THE SANTA CLARITA TOURISM MARKETING DISTRICT BY DESIGNATING ADDITIONAL HOTELS TO BE INCLUDED IN THE BENEFIT ZONE ALL PURSUANT TO SANTA CLARITA MUNICIPAL CODE SECTIONS 3.36.020 (DESCRIPTION OF AREA AND BENEFIT ZONE) AND 3.36.030.A (METHOD OF ASSESSMENT) AND THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989, SECTION 36500 ET SEQ. OF THE STREETS AND HIGHWAYS CODE. THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The boundary of the benefit zone (Benefit Zone) of the Santa Clarita Tourism Marketing District (TMD), pursuant to Chapter 3.36 of the Santa Clarita Municipal Code, is hereby expanded by the addition of hotels that commenced operations subsequent to the establishment of the TMD, as designated in Exhibit A, attached hereto and made a part hereof by this reference. SECTION 2. Environmental Review. This Ordinance is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., CEQA) and CEQA regulations (14 California Code of Regulations §§ 15000, etseq.) because it consists only of revisions to existing Tourism Marketing District boundaries. It can be seen with certainty that there is no possibility that the adoption of this Ordinance nor the activities contemplated herein may have a significant effect on the environment. Accordingly, it is not subject to CEQA pursuant to CEQA Guidelines §§ 15061(b)(3). SECTION 3. Invalidity. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 4. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Santa Clarita book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this ordinance, cause it to be published or posted in accordance with California law. L O SECTION 5. This ordinance will take effect on the 30' day following its final passage and adoption. E t Page 1 of 2 a Packet Pg. 15 1.b PASSED, APPROVED, AND ADOPTED this day of MAYOR ATTEST: CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) 2024. I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 24- was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the m day of 2024. That thereafter, said ordinance was duly passed and adopted at a regular meeting of the City Council on the m day of 2024, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: r L ABSENT: COUNCILMEMBERS: m AND I FURTHER CERTIFY that the foregoing is the original of Ordinance No. 24- and was published in The Signal newspaper in accordance with State Law (G.C. 40806). L Y CITY CLERK r a Page 2 of 2 Packet Pg. 16 1.b EXHIBIT A SANTA CLARITA TOURISM MARKETING DISTRICT HOTEL TOURISM MARKETING BENEFIT ZONE HOTELS SUBJECT TO ASSESSMENT UNDER SANTA CLARITA MUNICIPAL CODE CHAPTER 3.36 The following is a list of hotels operating within the Santa Clarita Tourism Marketing District and included in the Hotel Tourism Marketing Benefit Zone and subjected to assessment upon the adoption of Ordinance No. 10-4, enacting Santa Clarita Municipal Code Chapter 36: 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 NEW HOTELS: (Assessor Parcel No. 2861-071-009) (Assessor Parcel No. 2866-034-080) (Assessor Parcel No. 2866-034-083) (Assessor Parcel No. 2861-071-008) (Assessor Parcel No. 2861-062-020) The following is a list of new hotels now operating, or to commence operation within sixty (60) days hereof, within the Santa Clarita Tourism Marketing District included in the Hotel Tourism Marketing Benefit Zone and subject to assessment under Chapter 3.36 of the Santa Clarita Municipal Code pursuant to this Ordinance: 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 (Assessor Parcel No. 2866-035-007) (Assessor Parcel No. 2831-018-040) (Assessor Parcel No. 2861-071-010) (Assessor Parcel No. 2861-071-010) Hampton Inn Santa Clarita (Assessor Parcel No. 2866-035-007) 28700 Newhall Ranch Road a Packet Pg. 17