HomeMy WebLinkAboutReso. 2024-065 - Declaring results of Majority Protest proceedings and renewing the Redding Tourism Marketing Business Improvments District St7►L�..TTI�J►l�t NC1. 2024-065
A RESC��.,UTI�1�1 �DF '�'HE CITY CO�IN�IL t3F THE CITY �F T1I�IlYG
DECLA N� S�TLT�1�►F AJ4� "�"g'PRt�►"�"EST Pl�t��EEDI1�dGS AI�ID
I�tE�IN� THE �7►D�1�TdG TCIU SM l�I�R TING ��1SI1'�ES�
�n������Nr��rT �Is�r �T tr��r zn�
W E AS, the City of Redding (City} created the RTMBII� for a five (5) Year term on June 3;
2408, by Resolution No. 2008-56; and
�VHE AS,the RTNIB�D was subsequently renewetl in 2011 and again in 2015 fc�r an additional
ten{10} year term, by IZesQlution No, 2015-038,which ends an December 31, 2t�25; and
6VHE AS,the Property and Bu�in�ss Improvement District Law of 199A�(Streets ancl Highways
Code �3�600 et. seq.} authc�rizes the City to renew business impr€�vement districts upon petition
by a weighte� ma}ority ofthe business owners located�vithrn the boundaries of the district; and
W�IE AS,lodging business awners whcr will pay more than fifty percent(50°l0)bf the prc�pc�sed
assessment, as weighted according to the amount of the assessment to be paid by the petitioner,
within the boundaries of the RTMBID �ave petitioned the City Gc�uncil to renew th� RTMBID;
and
W E AS, the renewed 1ZTMBID includes all lodging businesses, existing and ii� the future,
available fc�r public occupaney located within the boundaries of the City; and
'�HE A�, included with the petitions was a Management District P1an (Flan} summary that
describes the prc�pased assessment to be levied �n all lodging businesses, existing and in future;
available for public accupancy within the RTMBII� to pay for marketing and sales promotir�n
programs and other improvements and activities set forth in the Plan; an�
�HE A�, the assessed Iodging busines$es within the RTMBIL) will receive a specific benefit
frc�m the activiti�s and improvements set forth in the Pl�n, antl
WHE AS,an May 2l,2024,at 6:a0 PM at City Council Chamb�rs,777 Cypress Ave,Redding,
CA 9b001, the City Council adopted a R.esolution of Intention,Resolution No. 2024-�44, and
E AS,the public meeting and public hearing to conside�r the renewal of the RTMBII�have
been prop�rly noticed in acc�rdance with �treets and Highways Code §36623; and
WHE AS, on June 18,2�24,at 6:t}0 PM at City Council Chambers,777 Cypress Ave,Redding,
C1�96001, the City Council held a public meeting regarding the�enewal ofthe RTMBID;and the
�ity Council heard and received objections and protests, if any, to the renewal of the RTMBID
and the levy t�f the prQpas�d asse�sment; and
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��E t��,on July 16, 2024,at 6:00 PM at City Council Chainbers,777 Cypress Ave,R�dding>
CA 96�01, the City Council held a public hearing regarding th�renewal c�f the RTNIBII), and the
City Co�ncil heard an:d received all c�bjections and protests, if any, to the renewal ofthe RTMBID
and the levy of the proposed assessment;and
��� �S,the City Clerk has determined that there�vas no majarity pr�test. A majority protest
is defined a� written protests received from owners of businesses in the renewec�RTMBID which
would pay fifty percent (5(}°l0) or mare of the assessments prop�sed to be levied: Protests are
weighted ba�ed on the assessment propc�sed ta be levied on each l�dging business; and
WHE AS, tl�e City bears the burder� c�f proVing by a prepc�nderance of the evidence that an
assessment imposed for a specific benefit or specific government service is nc�t a tax, that the
amvunt is no m�re than necessary tu cover the casts to the City in providing the specific benefit
or specifc gflvernment service, and that the manner in which thc�se cvsts a�e aTlocated to a payor
bear a �fair or reasonable relatic�ns�ip to the specific benefits or specific government serv�ces
received by the payor,
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l. The recitals set forth hereiz� are actc�pted by the City Council as findings and they are true
and cc�rre�t.
2. The RTMBII? is hereby renewed foi a ten(1 t�}year ter�n,begil�ning January 1�,2026; or as
soan as possible th�reafter, and ending ten (1�7}years from its sta:i-t date.
3. The Plan dated January 4, 2024, is hereby adopted and approved:
4: The �ctivities ta be provided to b�nefit businesses in the RTMBID wili be funded by the
levy of the assessme�t. The revenue from the assessment levy sh�ll nat be used: to provide
activities that directly benefit bu�inesses flutside the RTMBID, to prc�vide activities c�s
improvements outside the RTIVIBII); or far any purpose other than the purposes specified
i�l this Resolution, the Resolution of Intention, and the Plan. Natwithstanding the
f€�regoing, improvernents and activities that must be provided outside tlae RTMF3�IL7
boundaries tc�create a specific benefit to the assessed businesses may be pravided,but shall
be limited to mark�ting ar srgnage pointing to the RTMBID.
5. The City Gouncil finds as follaws:
a} The annual assessment rate is twc�percent(2%} af gross shc�rt-terrn�Ieeping r�rom
rental revenue: During the ten{10}�ear term,the assessment rate may be increased
annually by the RTIVICJ by a ma�imum of one quarter of one percent (0.25%0} c�f
gross short-terzn sleeping room rental revenue per year. The total assessment rate
shall not exceed three p�rcent {3°l0). Based on the benefit received, assessments
will not be c�llected on stays c�f more than thirty (30) cc�nsecutive days, counting
portians of calendar days as full days,nor on stays by any afficer ar empl�yee of a
fareign government who is exempt by reason�f express prc�vision of federal law or
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intemational treaty. The assessment shall be collected on stays until the periad of
thirty (30� days has expired unless there is an agreement in writing between the
�p�rator and the c�ccupant providing for a longer period crf occupancy.
b} The activities funded by the assessment wilI provide a specific benefit to assessed
businesses within the RTMBID that is nt�t provided to those not paying the
assessment:
c) The assessment is a char�e impased for a specific benefit cQnferred or privilege
granted direetly to the payor that is not provided to thos� not charged, and which
does not exceed the reasonable cc�sts ta the l�cal government c�f canferrrng the
benefit or granting the privile;e.
d) The assessment is a charge imposed for a specific government service or product
provided directly to the payar that is not pr�vided to thase not charged; and which
does nat e�ceed the reasonable costs to the local gc�v�rnment of providing t�e
selvice or p�°csduct:
e} Assessrnents irnpvsed pursuant ta the RTMBIL}are�evied solely upon the as�essed
business, and the business owner is solely respc�nsible fr�r payment of the
assessment when due. If the crwner chaoses to ct�llect any portion of the assessinent
from a transient, that portion sha11 be specifically calleci out and identified it�r the
trarnsient in any and all communications fr+�m the business owner as the "TMBIU
Ass�ssment"�r"Tourism Assessment;"
6. The assessments levied for the R:TMBID shall be applied tawards marketing and sales
promotion pragrams to market City of Redding iad�ing business�s as t�urist,meeting and
event t�estinations, and other improvements ancl activities.
7. Assessments levied on lodging businesses pursuant ta this Resc�lution shall be �evied on
the basis of benefit. Because the services provided are inten�ed to increase sleeping rooyn
rentals, an assessrnent ba�ed on gross short-teim sleeping room rental revenue is the b�st
measure c�f benefit:
8. The assessments for the er�tire RTMBII�will total apprc�ximately$1,400,000 in year one
(l}.
9: Bonds sha11 not be issu�d tc� fund the RTlltIBII7,
10. The RTMBID sha11 include a11 �fldging business, existing and in the future, available f�r
public occupancy lc�cated within the baundaries of the City of Redding. A baundary rnap
is attached hereta and incorporated herein by reference.
11. The assessments shall be used for the purpos�s set forth abov� and any fiinds remaining at
the end of any year rnay be used in subsequent years�n which the RTMBID assessment is
levied as long as they are used cansistent with the requirements set farth herein.
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12. The assessments to fund the activities and imprc�vements for the RTMBID will be callected
by the City on a monthly basis, and in a�cardance vvith Streets and Highways Code§36631.
13. The City Cauncil,through adoptit�n c�f this Resalutic�n and tl�e Plan, has th� right pursuant
tc� Streets and Highways �c�de §36651, to identify the body that shall implement the
propc�sed program, which sha11 b� the �wners' Assc�ciation of the RTMBID as defined in
Streets and Highways Code §�6612. The City Council has determined that Redding
Tr�ul•ism Marketing Group;Inc., shall be the RTMBID Qwners' Association,
14: Re�ding Tourism Marketing Group, Inc:,pursuantfo 5treets and Highways Code §�6650,
shall cause t� be prepared a report fc�r e�ch fiscal year, exc�pt tihe first year, for w�ich
assessments are to be levied and collected ta�ay the costs ofthe impravement and activities
described in the rept�rt. The first repart shall be due after the first-year of operatian c�f the
RTIv�BII?.
I5; The RTMBID renewed pursuant to this Resolutic�n will be'subj�ct ta any amendments to
th� Property and Business Improvement I)istrict Law of 1994 (Calif�rnia "�treets and
Highways Code §3bb�0 et, seq.}.
1b. The City Clerk, c�r his c�r her designee, is directed to take all necessary action�to complete
the renewal of the RTMBII� and tc� levy the assessments.
17: This R:e�c�lution shall take effect im�nediately upon its adoptic�n by the City Council:
Z E �IT ���t�'I�+'�' that the faregoing resalution was introduced and adopted at a regular
meeting of the City Council af the City of Redding on the 16th day of July;2024;by the following
vote;
t�YES, +C4UI'�CIL ME ERS: _Jcshnson,Mezzanc�,Munns,antl Winter
NOES: +C�}UNCIL ME ERS: -None
ABSENTi C�lUI'�CTi�ME ERS: - Audette
A�STAIl'�. C+DUNCIL IVIE E12�: -I�ione
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