HomeMy WebLinkAbout _ 9.1(a)--Renewal of the Tourism Marketing Business Improvement District � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: June 18, 2024 FROM: Jason Gibilisco, Management
ITEIVI NO. 9.1(a) Assistant to the City M�anager
***APPROVED BY***
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jgibilisco@cityofredding.org btippin@cityofredding.org
SUBJECT: 9.1(a)--Public Meeting to consider the renewal of the Redding Tourism
1Vlarketin Business Tm rovement District.
Recommendation
Conduct a Public Meeting and receive public comment in consideration of the renewal af the
Redding Tourism Marketing Business Tmprovement District.
Fiscal Impact
There is no impact to the General Fund with the recommended action. If the District is
renewed, an administrative fee of one percent - estimated to be $14,000 - would be collected
from the Tourism Marketing Business Improvement District (TMBID) funds for
administrative costs.
Alte�native Action
The City Council (Council) could choose to decline to canduct the Public Meeting, halting the
process of renewing the TMBID, and/or provide further direction to staff.
Backg�ound/Analysis
On May 21, 2024, the Council adopted a Resolution of Intention to renew the TMBID, funded
by an assessment on lodging industry receipts. That action allowed implementation of the next
steps necessary to renew the TMBID by setting both the Public Meeting (this date) and the
Public Hearing(July 16, 2024) as required by California law.
The TMBID was first formed in 2008 for a one-year period. In 2009, the Council approved
renewal of the TMBID for an 18-month period running from July 1, 2009, through December 3 l,
2010. In December 2010, the Council approved a five-year renewal for the TMBID. That
renewal called for assessments to increase from one percent to two percent on January l, 2013.
The TMID was renewed thereafter from January 1, 2016, to December 31, 2025.
Report to Redding City Council June 12,2024
Re: 9.1(a)--Renewal of the Tourism Marketing Business Improvement District Page 2
The Redding Tourism Marketing Group (RTMG), who administers the district, is requesting that
the City Council renew the TMBID far a 10-year period, running from January 1, 2026, through
December 31, 2035. The assessment would remain at two percent of gross room revenue (under-
30-day stay) and the RTMG has the option to increase the assessment rate annually by a
maximum of one quarter of one percent of gross short-term sleeping room rental. The total
assessment rate shall not exceed three percent.
Representatives of lodging properties that generate more than 70 percent of the total lodging
revenues have signed petitions supporting renewal of the district, which is citywide. In
fu1fi11ment of its prior decision to hold the Public Meeting in consideration of the renewal of the
TMBID, the Council should hear any public comments related to the district's renewal. No
official action is required, but any comments from this Public Meeting should be considered
along with any additional testimony that may be given at the Public Hearing scheduled for July
16, 2024. Additionally, at the July 16 meeting, the Council may take formal action to renew the
District if there is no majority protest.
Environmental Review
This is not a project defined under the California Environmental Quality Act and no further
action is required.
Council Priority/City Manager Goals
• Economic Development — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investinent in the community."