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HomeMy WebLinkAbout2010-03-23 - AGENDA REPORTS - TOURISM MARKETING DISTRICT (2)Ag enda Item: CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Jason Crawford DATE: March 23, 2010 SUBJECT: ADOPT RESOLUTION OF INTENT TO FORM A TOURISM MARKETING DISTRICT (TMD) AS A MEANS TO INCREASE TOURISM ACTIVITY IN THE CITY OF SANTA CLARITA DEPARTMENT: City Manager's Office RECOMMENDED ACTION City Council adopt "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." 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 to preliminarily draft the program. The Tourism Marketing District is authorized by the Parking and Business 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. Currently, when visitors stay at hotels and motels located in the City, a 10 percent transient occupancy tax is assessed. The proposed Tourism Marketing District would add an additional AdoPted:Ta_sa-,LD,- ( �� assessment of 2 percent to be used for the sole purpose of marketing and enhancing Santa Clarita's image as a toursim destination. The proposed increase would provide the same level of taxes currently assessed in the County, which includes a total assessment of 12 percent. 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 Tourism Marketing District because of the marketing efforts and programs designed to increase tourism business to Santa Clarita. The proposed schedule for the implementation of the Tourism Marketing District is as follows: • March 23, 2010 - City Council consider Resolution of Intent • May 10, 2010 - City Council hold Public Hearing, conduct first reading of an ordinance creating the Tourism Marketing District • May 25, 2010 - City Council hold Public Hearing, consider adoption of 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 commence with the required administrative proceedings, which includes providing a copy of the Resolution of Intent to all property/business owners proposed to be included in the Tourism Marketing District. ALTERNATIVE ACTIONS Other actions as determined by City Council. FISCAL IMPACT There is no fiscal impact as a result of the item. Upon completion of the formation proceedings, N it is estimated that approximately $400,000 will be generated and expended through the Tourism Marketing District in the FY 10/11. ATTACHMENTS Resolution TMD Map N RESOLUTION 10- 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 WHEREAS, the City of Santa Clarita ("the 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 areas pursuant to said Parking and Business Improvement Area Law of 1989; and WHEREAS, the City Council of the City of Santa Clarita and several hotel operators within the City are desirous to take proceedings to provide a method of funding public programs and activities that will promote the City and hotels as a tourist destination; and WHEREAS, the City Council proposes to establish a business improvement area within the City for Fiscal Year 20 10/1 1 pursuant to the Parking and Business Improvement Area Law of 1989, and in accordance with Section 36522 of said Law, hereby institutes the proceedings for such\a district by the adoption of this Resolution of Intention. NOW THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Declaration of Intention. Pursuant to the Parking and Business Improvement Area Law of 1989, the City Council hereby declares its intention to establish a business improvement area designated as the Tourism Marketing District (hereinafter "Area" of "TMD") and a Hotel Tourism Marketing Benefit Zone (hereafter "Benefit Zone") within such Area. SECTION 3. Boundaries. The boundaries of said Area are proposed to include all of the real property within the City of Santa Clarita and the boundaries of the area are coterminous with the City boundaries, a map of which is on file in the office of the clerk. The boundaries of said Benefit Zone are proposed to include the hotels now operating in the City and identified and attached hereto as Exhibit "A" and may include hotels hereafter operating in the Area 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. The hotels operating in the proposed Area and within the Benefit Zone are described in Exhibit "A", attached hereto and incorporated herein by reference. SECTION 4. Method of Assessment. In addition to any assessments, fees, charges or taxes imposed otherwisein 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. A description of the proposed system of assessments is set forth on Exhibit "B", attached hereto and incorporated herein by this reference. SECTION 5. Exemption of Newly Established Business. The City Council proposes to annually levy assessments against all businesses in the Benefit Zone in accordance with the proposed system of assessments is 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 6. Use of Assessment Revenues. That the proposed uses of the revenues derived from charges levied against businesses in the Benefit Zone in said Area 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) To develop and undertake 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 Hometown Trolley program; and (g) Attendance at key meeting and consumer trade shows. SECTION 7. Fiscal Year. Upon successful establishment of the Tourism Marketing 2 District, the proposed system of assessments is set forth on Exhibit "B" and to be levied for these proceedings are relate to 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). SECTION 8. Public Hearing. That a public hearing concerning the establishment of said Area, the proposed Benefit Zone and proposed assessments will be held on May 11, 2010. 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 23920 Valencia Boulevard, Santa Clarita. At such public hearing, the City Council shall hear the testimony of all interested persons for or against the establishment of the Area, the extent of the Area and Benefit Zone, the proposed assessments and the furnishing of specified types of improvements or activities. ` SECTION 9. Determination of Protest. All protests and received evidence, including written protests, for and against the establishment of the Area; the Benefit Zone within such Area and the proposed assessments related thereto shall be entered into the record. If written protests are received from the owners of businesses in the proposed area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to create the specified business improvement area or to levy the proposed assessment, as contained in this resolution of intention, 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 within the area, 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 10. Adoption of Resolution. The City Clerk shall certify to the adoption of this Resolution, cause the same to be published in the manner prescribed by law, and shall mail a complete copy of this Resolution to each person owning or operating a business which is located in the proposed Benefit Zone. PASSED, APPROVED AND ADOPTED this 23rd day of March, 2010. ATTEST: CITY CLERK MAYOR 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 Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 2010, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 4 CITY CLERK, STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 10- adopted by the City Council of the City of Santa Clarita, California 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 5 EXHIBIT A SANTA CLARITA TOURISM MARKETING DISTRICT HOTEL TOURISM MARKETING BENEFIT ZONE Hotels in Fiscal Year 2010/2011 The following is a list of hotels now operatingin the proposed Area and within the Benefit Zone for Fiscal Year 2010/2011. Best Western Valencia Inn 27413 Wayne Mills Place Holiday Inn Express 27513 Wayne Mills Place Courtyard by Marriott 28523 Westinghouse Place Embassy Suites 28508 Westinghouse Place Hyatt Regency Valencia 24500 Town Center Drive (Assessor #--2861071009) (Assessor 9--2861071008) (Assessor #--2866034080) (Assessor #--2866034083) (Assessor #--2861062020) 9 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 Benefit 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% 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. � m w Ip Myo ILI 1 i TO » pIL EJ_� I N I W : T / N d 3 �0 MUMP co �� C-4 All S --