HomeMy WebLinkAbout2010-05-25 - AGENDA REPORTS - ORD TMD READING (2)Hill 0.3 K4 M 1 ".1 0 0 to
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
May 25, 2010
SECOND READING AND ADOPTION OF AN ORDINANCE
ADDING CHAPTER 3.36 TO THE SANTA CLARITA
MUNICIPAL CODE CONCERNING THE CREATION OF A
TOURISM MARKETING DISTRICT (TMD); AND .
DESIGNATION OF THE TOURISM MARKETING DISTRICT
ADVISORY BOARD
City Manager's Office
RECOMMENDED ACTION
City Council conduct the second public hearing and adopt an ordinance titled: "An Ordinance of
the City of Santa Clarita establishing the Santa Clarita Tourism Marketing District (Business
Improvement Area) and the Hotel Tourism Marketing Benefit Zone in the City."
City Council designate the Tourism Marketing District Advisory Board for FY 2010/2011.
BACKGROUND
On April 28, 2009, the Santa Clarita City Council unanimously approved the 21 -Point Business
Plan for Progress, a broad -reaching economic development stimulus program designed to
strengthen the local economy for both the short- and long-term. The 21 -Point Business Plan for
Progress included goals to enhance local business partnerships, encourage quality job creation in
the area through business retention, expansion and attraction, bolster retail spending, and attract
external dollars to the community. The formation of a Tourism Marketing District is a
component of this Plan.
City staff has worked closely with the owners and operators of the local hotels, who requested
and are supportive of the formation of the Tourism Marketing District, to preliminarily draft the
program. The Tourism Marketing District is authorized by the Parking and Business
;Adopted:01'er 4q
r
Improvement Area Law of 1989 (Section 36500 et. seq. of the Streets and Highways Code of the
State of California). This law permits the City to levy assessments on businesses within a
business improvement area to use such proceeds for the benefit of the businesses within the area.
The law also states that "City Council shall appoint an Advisory Board which shall make a
recommendation to the City Council on the expenditure of revenues derived from the levy of
assessments." The law also requires that "the Advisory Board shall cause to be prepared a report
for each fiscal year" which will be presented to City Council at a Public Hearing annually. The
Advisory Board is governed by the Brown Act, as it is City Council appointed.
Staff recommends the Advisory Board consist of one representative from each of the hotel
businesses that are participating in the Tourism Marketing District along with two designees
selected by the City Manager. Staff requested each participating hotel provide a representative for
the City Council to consider. Additionally, the City Manager selected two designees.
The following is the recommended Advisory Board for FY 2010-2011:
Best Western Valencia Inn, Jim Flagg/Hotel Owner
Courtyard by Marriott, Noel Pavia/General Manager
Embassy Suites, Brian Murphy/General Manager
Holiday Inn Express, David Cornish/Hotel Operations
Hyatt Regency, Tim Wildey/Director of Sales
City of Santa Clarita, Jason Crawford/Economic Development & Marketing Manager
City of Santa Clarita, Jessica Freude/Economic Development Associate
The proposed Tourism Marketing District would add an assessment of two percent to the daily
rate at hotels in the Benefit Zone to be used for the sole purpose of marketing and enhancing
Santa Clarita's image as a tourism destination. It is estimated that the Tourism Marketing District
will operate. with a budget of approximately $400,000 in the first year of operation. Each year
thereafter, the budget is anticipated to increase based on additional revenue generated through
more visitor hotel stays and the overall success of the program.
Funds generated through the Tourism Marketing District would be used to develop marketing
campaigns, increase awareness about the local hotels and the Santa Clarita area through public
relations and advertising efforts, and attract high quality, revenue generating events to the City of
Santa Clarita. In the past, events such as the PGA Champions Classic, AMGEN Tour of
California, and Western States Police and Fire Games have equaled an economic impact of more
than $10 million to the local economy. Funds generated through this program may be used to
subsidize the costs associated with quality events such as those mentioned above that require
financial support from the host community.
Economic Development staff have met with each of the five hotels currently operating in the
Benefit Zone for Fiscal Year 2010-2011. These hotels include: Best Western Valencia Inn,
Holiday Inn Express Hotel & Suites, Courtyard by Marriott, Embassy Suites, and Hyatt Regency
Valencia. Staff found all of the hotels are supportive of the proposed establishment of the
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Tourism Marketing District because of the marketing efforts and programs designed to increase
tourism business to Santa Clarita.
The Santa Clarita Valley Chamber of Commerce Board of Directors voted unanimously to
support the Tourism Marketing District to attract tourism events to Santa Clarita and market
Santa Clarita as a tourist destination. Hyatt Regency and Courtyard by Marriott provided written
comments in support of the formation of the Tourism Marketing District at the March 23, 2010,
City Council meeting. Hyatt Regency and Embassy Suites provided written comments in support
of the Tourism Marketing District at the May 11, 2010 City Council meeting.
The schedule for the implementation of the Tourism Marketing District is as follows:
• March 23, 2010 - City Council adopted Resolution of Intent
• May 11, 2010 - City Council held Public Hearing, conducted first reading of an ordinance
to create the Tourism Marketing District
• May 25, 2010 - City Council to hold second Public Hearing, adopting the ordinance
creating the Tourism Marketing District, determine assessments, and appoint
Advisory Board
• July 1, 2010 - Tourism Marketing District is effective.
Should the City Council approve this action, staff will continue with the required administrative
proceedings to ensure the Tourism Marketing District is effective July 1, 2010.
ALTERNATIVE ACTIONS
Other actions as determined by City Council.
FISCAL IMPACT
Upon completion of the formation proceedings, it is estimated approximately $400,000 will be
generated and expended through the Tourism Marketing District in the FY 10/11. A draft budget
for FY 10/11 is attached for review. This will be included as part of the City's FY 10/11 budget.
ATTACHMENTS
Ordinance -
TMD Budget FY 2010-2011
ORDINANCE NO. 10 -
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, CALIFORNIA,
ADDING CHAPTER 3.36 OF TITLE 3,
OF THE SANTA CLARITA MUNICIPAL CODE
CONCERNING THE CREATION OF A TOURISM MARKETING DISTRICT
AND HOTEL TOURISM MARKETING BENEFIT ZONE
SECTION 1. RECITALS
WHEREAS, 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 adopted that
certain Resolution No. 10-13, dated March 23, 2010, entitled "A Resolution of the City Council
of the City of Santa Clarita Declaring its Intention to Establish a Business Improvement Area in
the City of Santa Clarita to be Designated as the Tourism Marketing District ("TMD") and
Setting a Time and Place of a Hearing to Consider the Establishment of Such Area", and caused
said resolution to be duly published and mailed as provided by law.
WHEREAS, a public hearing concerning the formation of said Santa Clarita
Tourism Marketing District, hereafter referred to as TMD, was held on May 11, 2010 and May
25, 2010 at the hour of 6:00 p.m. in the Santa Clarita City Council Chambers at City Hall, 23920
Valencia Boulevard, Santa Clarita, California.
WHEREAS, at said hearings all written and oral protests made or filed for or against the
establishment of the TMD and a Hotel Tourism Marketing Benefit Zone (hereafter referred to as
'Benefit Zone"), were duly heard, evidence for and against the proposed action was received and
a full, fair and complete hearing was granted and held.
WHEREAS, the City Council heard all protests and all protests, both written and oral,
were entered into the record and it was determined by the City Council that there was no majority
protest within the meaning of said Streets and Highways Code, Section 36500 et seq.
WHEREAS, the public and business interest, convenience, and necessity have facilitated
the establishment of the proposed TMD and Benefit Zone.
WHEREAS, in the opinion of the City Council, the businesses within the Benefit Zone
will be benefited by the expenditure of the funds raised by the assessments as contemplated by
said Section 36500, et seq.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 2. That Chapter 3.36 is hereby added to the Santa Clarita Municipal Code to
read as follows:
"Chapter 3.36
TOURISM MARKETING DISTRICT
Sections:
3.36.010
Establishment of Area and Benefit Zone
3.36.020
Description of Area and Benefit Zone
3.36.030
Method of Assessment
3.36.040
Funds
3.36.050
Use of Revenues
3.36.060
Amendments
3.36.070
Effective Date
3.36.080
Validity of Ordinance
3.36.010 Establishment of Area and Benefit Zone.
Pursuant to Section 36500 et seq. of the Streets and Highways Code of the State of
California, a business improvement area designated as the Santa Clarita Tourism Marketing
District ("TMD") of the City of Santa Clarita is hereby created and established and the "Benefit
Zone" is hereby created and established within such TMD.
3.36.020 Description of Area and Benefit Zone
The boundaries of the TMD shall include all of the real property within the City of Santa
Clarita and the boundaries of said area are coterminous with the City boundaries, a map of which
is on file in the office of the clerk. The boundaries of the Benefit Zone shall include designated
hotels now operating in the City identified and attached hereto as Exhibit "A" and may include
hotels hereafter operating in the TMD pursuant to proceedings for inclusion. Hotel shall mean
any structure, or any portion of any structure, which is occupied or intended or designed or
occupied by transients, including but not limited to for dwelling, lodging or sleeping purposes,
and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging
house, rooming house, apartment house, dormitory, public or private club, mobilehome or house
trailer at a fixed location, or other similar structure or portion thereof, duplex, triplex,
single-family dwelling units except any private dwelling house or other individually owned
single-family dwelling rented only infrequently and incidental to normal occupancy or any
timeshare as set out in Revenue and Taxation Code 7280; provided, that the burden of
establishing that the facility is not a hotel shall be on the owner or operator thereof.
3.36.030 Method of Assessment
A. Only those designated hotels included within the Benefit Zone (identified and attached
hereto as Exhibit "A") shall be assessed. An annual assessment is to be levied against
such hotels based on the benefits they derive from the program of activities. Businesses
located outside the Benefit Zone (i.e., all non -hotel businesses) will not be assessed as
they derive only, at most, an indirect benefit from the program of activities.
J
B. This Ordinance and requirements established herein shall be applicable to all hotels in the
designated Benefit Zone as said hotels existed as of the date of this ordinance or as
modified in subsequent proceedings for inclusion of hotels proposed to operate within the
Benefit Zone. Any modification to the Benefit Zone or program of activities for which
the assessments are to be levied would be subject to notification of all affected businesses
within the TMD 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 modifications, including the inclusion of additional hotels or business.
Assessments on newly established hotels shall commence immediately upon the first day
of operation and after the public hearing for inclusion of such property.
C. In addition to any assessments, fees, charges or taxes imposed otherwise in the City, the
City Council proposes to annually levy assessments against businesses in the Benefit
Zone for the purpose of funding the programs, activities and services that will promote
the City and hotels as a tourist destination. Each business in the Benefit Zone shall pay an
assessment 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.
D. The assessments hereby levied shall be due and payable and shall be paid at the same
time and in the same manner that the transient occupancy tax is due and payable and shall
be subject to the same penalties and interest for nonpayment.
E. The Method of Assessment established by this ordinance shall not be changed without
written notice to all businesses in the TMD and a public hearing held by the City Council.
At such a public hearing, the City Council shall hear all protests and receive evidence,
including written protests, for and against the establishment of any change in the Method
of Assessment.
3.36.040 Funds
There is created a special fund of the City to be designated as the "Santa Clarita Tourism
Marketing District Fund" into which all revenue derived from the assessments under this
Ordinance shall be placed and such funds shall be used only for the purposes specified in this
Ordinance.
3.36.050 Use of Revenues
Revenues derived from the Method of Assessment described herein, shall be used for
programs and activities that will promote the City and hotels as a tourist destination. The City
shall allocate the revenue generated under the provisions of this ordinance to the Santa Clarita
Tourism Marketing District Fund and the Advisory Board appointed by the City Council shall
provide recommendations as to the best use of these funds to support the programs, activities,
and services to promote the City and hotels as a tourist destination on an annual basis. The
Advisory Board shall make recommendations to the City of Santa Clarita and the City Council as
to the use of available revenue for the following purposes:
A. Promoting the identity of Santa Clarita through financial support of key regional
H/
and national events that support tourism and result in an economic impact; and
B. Developing and implementing a destination marketing strategy and promotions
designed to increase visitor attraction to Santa Clarita, including overnight visits; and
C. Developing and undertaking an advertising and public relations program focusing on
the business and leisure travel trade; and
D. Annual operation expenses including, but not limited to, annual district administration
functions and expenses, consultants, printing, postage and meetings.
3.36.060 Amendments
Businesses within the TMD established by this Ordinance shall be subject to any
amendments to the Parking and Business Improvement Area Law of 1989, Section 36500 et seq
of the Streets and Highways, Code.
3.36.070 Effective Date
The assessments to be collected pursuant to this Ordinance shall first be collected
commencing Fiscal Year 2010-2011 (the Fiscal Year commencing July 1, 2010 and ending June
30, 2011) and the levy of such assessments are proposed to take effect the first day of the first
quarter of Fiscal Year 2010-2011 (July 1, 2010) and shall be collected on a quarterly basis
thereafter.
3.36.080 Validity of Ordinance
If any section, sentence, clause or phrase of this Ordinance is, for any reason, held by a
court of competent jurisdiction to be invalid, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council of the City of Santa Clarita hereby
declares that it would have passed and does hereby pass this section and each sentence, section,
clause and phrase hereof, irrespective of the fact that anyone or more sections, sentences, clauses,
or phrases be declared invalid or unconstitutional.
SECTION 3. This Ordinance shall be in full force and effect thirty (30) days from its
passage and adoption.
SECTION 4. The City Clerk shall certify to the passage of this Ordinance and shall cause
the same to be published as required by law.
4
EXHIBIT A
SANTA CLARITA
TOURISM MARKETING DISTRICT
HOTEL TOURISM MARKETING BENEFIT ZONE
The following is a list of hotels now operating in the Hotel Tourism Marketing Benefit Zone
within the Santa Clarita Tourism Marketing District as existed on the date of this ordinance or as
modified in subsequent proceedings for inclusion of hotels proposed to operate within the Hotel
Tourism Marketing 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
(Assessor #--2861071009)
(Assessor #--2866034080)
(Assessor #--2866034083)
(Assessor #--2861071008)
(Assessor #--2861062020)
5 il
PASSED, APPROVED, AND ADOPTED this day of 2010.
MAYOR
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Ordinance 10- was regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the day of 2010. That thereafter, said
Ordinance was duly passed and adopted at a regular meeting of the City Council on the day
of 2010, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance and
was published in The Signal newspaper in accordance with State Law (G.C. 40806).
CITY CLERK
7 10
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL ORDINANCE
I, , City Clerk of the City of Santa Clarita, do hereby
certify that this is a true and correct copy of the original Ordinance 10- , adopted by the City
Council of the City of Santa Clarita, CA on , 2010, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
2010.
City Clerk
By
Deputy City Clerk ,
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