HomeMy WebLinkAboutReso 2008-056 - Tourism Marketing Business Improvement District
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RESOLUTION 2008 - 56
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
DECLARING THE RESUL TS OF THE MAJORITY PROTEST
PROCEEDINGS AND ESTABLISHING THE TOURISM MARKETING
BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the Property and Business Improvement District Law of I 994 (Streets and Highways
Code S 36600 et seq.) authorizes cities to establish property and business improvement districts upon
petition by a weighted majority of the business owners located within the boundaries of the District.
WHEREAS, a majority of the lodging business owners subject to assessment within the Tourism
Marketing Business Improvement District (TMBID) have petitioned the City Council to establish
the TMBID.
WHEREAS, each petition has been weighted according to the amount ofthe assessment anticipated
to be paid by the lodging business owner.
WHEREAS, the lodging business owners who signed the petitions will pay more than fifty (50)
percent of the proposed assessment.
WHEREAS, included with the petitions was a Management District Plan prepared by the Redding
Hotel Motel Association which describes the proposed assessment to be levied on lodging businesses
within the TMBID to pay for tourism marketing activities.
WHEREAS, Streets and Highways Code S 36623 provides that the notice and protest procedures
set forth in Government Code S 59954.6 shall be followed.
WHEREAS, on April 15, 2008, the City Council adopted Resolution 2008-33, which provides that
a public meeting will be held on May 6, 2008, at 7:00 p.m. in the City Council Chambers located at
777 Cypress Avenue, Redding, California, and said public meeting has been held.
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WHEREAS, Resolution 2008-33 also set a public hearing to consider protests and the proposed
establishment of the TMBID for June 3, 2008, at 7:00 p.m. in the City Council Chambers located
at 777 Cypress Avenue, Redding, California.
WHEREAS, the public hearing to consider the formation ofthe TMBID has been properly noticed
in accordance with Streets and Highways Code S 36623.
WHEREAS, at 7:00 p.m. on June 3, 2008, in the City Council Chambers, 777 Cypress Avenue,
Redding, California, the City Council held a public hearing regarding the establishment of the
TMBID, and the City Council heard and received all objections and protests to the establishment of
the TMBID and the levy of the proposed assessment.
WHEREAS, the City Clerk has determined that the weighted protests, both written and oral,
submitted and not withdrawn in opposition to the proposed assessment and the formation of the
TMBID did not exceed fifty (50) percent ofthe total weighted vote of the lodging businesses entitled
to vote on the formation of the TMBID and the levy ofthe proposed assessment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
]. The recitals set forth herein are adopted by the City Council as findings and they are true and
correct.
2. Pursuant to the requirements set forth in Streets and Highways Code S 36625, the TMBID
is established for a one (]) year term commencing on July], 2008, and, unless renewed
pursuant to the procedures set forth in the Property and Business Improvement District Law
of ]994 (Streets and Highways Code S 36600 et seq.), the TMBID will expire on Ju]y ],
2009.
3. The activities set forth in the recitals will be funded by the levy of an assessment on lodging
businesses within the TMBID, as described in the Management District Plan that is on file
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with the City Clerk. Said assessments shaH be in addition to any other assessment, fee or tax
previously established within the jurisdictional boundaries of the City of Redding.
4. The TMBID assessment will be levied on aH lodging businesses, as defined in the
Management District Plan, within the TMBID boundaries and shaH be based upon one (I)
percent of gross short-term (stays less than thirty (30) days) room rental revenue per night
and "gross room rental revenue" shaH be defined as total revenue less any local, state or
federal sales taxes or transient occupancy taxes. The levy of assessments shaH apply to any
lodging business established within the boundaries of the TMBID during the term of the
TMBID. Stays by persons who are government employees on government business shaH be
exempt from the assessment.
5. An annual amount equal to one (1) percent of the annual assessments collected per fiscal may
be charged against the TMBID as the reasonable sum due for costs of administration of the
TMBID.
6. The assessments shall be used for the purposes set forth in the above recitals and any funds
remaining at the end of any year, should the TMBID be renewed, may be used in subsequent
years in which TMBID assessments are levied. If the TMBID is not renewed, any funds
remaining at the expiration of the TMBID shaH be distributed in accordance with Streets and
Highways Code ~ 36660 et seq.
7. The lodging businesses within the TMBID wiH be benefitted by the activities set forth in the
Management District Plan.
8. The revenue from the levy ofthe assessments on lodging businesses within the TMBID may
not be used to provide for activities or improvements outside the TMBID or for any purpose
other than those specified in the Management District Plan.
9. The assessments to fund the activities and improvements for the TMBID will be coHected
at the same time and in the same manner as are transient occupancy taxes, and, in accordance
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with Streets and Highways Code S 36631, all delinquent payments for assessments levied
herein shall be charged interest and penalties in the same manner as are transient occupancy
taxes.
10. A hotel business owners' association, when formed, may provide the activities described in
the Management District Plan, and the City Manager is hereby authorized to contract with
the hotel business owners' association to provide services authorized herein.
II. In the event that the TMBID is renewed beyond its initial one (I) year term, the hotel
business owners' association shall, pursuant to Streets and Highways Code S 36650, cause
to be prepared a report for each fiscal year, except the first year, for which assessments are
to be levied and collected to pay the costs of the improvements and activities described in
the report.
12. No bonds shall issue to fund the TMBID.
13. The lodging businesses within the TMBID shall be subject to any amendments of the
Property and Business Improvement District Law of 1994 (Streets and Highways Code S
36600 et seq.).
14. The exterior boundaries of the TMBID are the jurisdictional boundaries of the City of
Redding.
15. The City Manager, or his designee, is directed to take all necessary actions to complete the
establishment of the TMBID and to levy the assessments.
16. The City Clerk is directed to record in the Shasta County Recorder's Office a notice and
assessment diagram, as required by Streets and Highways Code S 36627. The text of the
recorded notice shall state that the assessment is levied only against lodging businesses
within the area of the TMBID.
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17. This resolution shall take effect immediately upon its adoption by the City Council. The
adoption of this resolution and recordation of the notice and map pursuant to Streets and
Highways Code S 36627 shall constitute the levy of an assessment in each of the year(s)
referred to in the Management District Plan.
I HEREBY CERTIFY that the foregoing resolution of intention was introduced and adopted at a
regular meeting of the City Council on the 3rd day of June, 2008, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Bosetti, Dickerson, Jones, Murray, and Stegall
None
None
None
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Attest:
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Approved to Form:
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RICHARD A. DUVERNAY,
Attorney
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