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Home My WebLink About2024-06-11 - AGENDA REPORTS - AMEND TMD BENEFIT ZONEO Agenda Item: 9 1. CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR 14) CITY MANAGER APPROVAL: ' DATE: June 11, 2024 SUBJECT: SECOND 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 a second reading and adopt 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." 2. Authorize the City Manager or designee to execute all contract, amendments, and associated documents, subject to City Attorney approval. BACKGROUND On May 28, 2024, the City Council conducted a public hearing for amendments to the City of Santa Clarita's (City) Municipal Code (Chapter 3.36) regarding the Boundaries of the Benefit Zone of the Santa Clarita Tourism Marketing District (TMD) to include newly constructed hotels as part of the TMD as receiving benefits and to pay an assessment of two percent of total room rents charged and received from transient hotel guests. The revenue received from the two percent assessment gets deposited into the TMD Fund, which is used for programs and activities Page 1 Packet Pg. 63 O that promote the City as a tourist destination and generate economic activity. ALTERNATIVE ACTION Other direction as determined by the City Council. FISCAL IMPACT The onboarding of the five new hotels is estimated to increase Tourism Marketing District (Fund 360) revenue by approximately $430,000 annually, as part of the two percent method of assessment. Revenues within the TMD Fund are only to be used for the purposes of programs and activities that promote the City of Santa Clarita as a tourist destination. ATTACHMENTS Ordinance Page 2 Packet Pg. 64 9.a 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. SECTION 5. This ordinance will take effect on the 30th day following its final passage and adoption. Page 1 of 2 Packet Pg. 65 9.a 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: ABSENT: COUNCILMEMBERS: AND I FURTHER CERTIFY that the g g foregoing is the original of Ordinance No. 24- g � and was published in The Signal newspaper in accordance with State Law (G.C. 40806). L c� C CITY CLERK r r a Page 2 of 2 Packet Pg. 66 9.a 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 Hampton Inn Santa Clarita 28700 Newhall Ranch Road (Assessor Parcel No. 2866-035-007) (Assessor Parcel No. 2831-018-040) (Assessor Parcel No. 2861-071-010) (Assessor Parcel No. 2861-071-010) (Assessor Parcel No. 2866-035-007) Packet Pg. 67