HomeMy WebLinkAbout15 - Public Meeting on NBTBID(9)
TO:
CyIWKS]9
Agenda Item No. 15
January 14, 2014
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan
APPROVED: �l✓V\�
TITLE: Public Meeting on the Renewal of the Newport Beach Tourism
Business Improvement District
ABSTRACT:
The Newport Beach Tourism Business Improvement District (NBTBID) Owner's
Association is requesting the renewal of the NBTBID for a 10 -year term, at an
assessment rate of 3% and with the addition of the Island Hotel Newport Beach.
RECOMMENDATIONS:
Hold a public meeting on the proposed renewal of the NBTBID.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this item. The City of Newport
Beach collects the member assessments on behalf of the NBTBID and retains 0.25% of
1% of the total assessments collected to reimburse the City for administrative costs
associated with the NBTBID.
DISCUSSION:
Background
The NBTBID was formed by the City of Newport Beach (City) on April 28, 2009,
pursuant to the Property and Business Improvement District Law of 1994 (the 1994
Law), Streets and Highways Code Sections 36600 et seq. The City Council modified the
NBTBID's Management District Plan in April 2012 to add another lodging business, the
Resolution No. 2013 — 89, A Resolution of Intention to Renew the Newport Beach
Tourism Business Improvement District
January 14, 2014
Page 2
Newport Dunes Waterfront Resort and Marina. The NBTBID currently has seven
members including the Fairmont Newport Beach, the Hyatt Regency Newport Beach,
the Newport Dunes Waterfront Resort and Marina, the Newport Beach Marriott
Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson Newport Beach, and
the Balboa Bay Club and Resort (a.k.a., Balboa Bay Resort).
Under an agreement with the City, Visit Newport Beach, Inc. (VNB) serves as the
NBTBID's Owner's Association and oversees its administration and coordinates its
marketing and sales activities. VNB works with a committee comprised of
representatives from the seven member lodging businesses (the NBTBID committee) to
develop the NBTBID work plan and budget. The NBTBID is in the final year of a five -
year term and is scheduled to expire on April 28, 2014.
NBTBID Renewal
As presented during the City Council's November 26, 2013 Study Session, VNB notified
the City that the NBTBID's member lodging businesses wish to renew the NBTBID for
an additional 10 years, add another member (Island Hotel Newport Beach), and
increase the assessment from 2% to 3% of gross short-term room rental revenue. Staff
received general direction from the Council to move forward with the NBTBID renewal
process, incorporating the proposed changes listed above. In addition, VNB submitted
signed petitions from the eight lodging businesses (100% of the proposed assessment)
and those are on file with the City Clerk's Office.
Renewing the NBTBID involves a three -step process spanning three City Council
meetings. The first step was accomplished on December 10, 2013 when the Council
adopted Resolution No. 2013 -89, A Resolution of Intention to Renew the Newport
Beach Tourism Business Improvement District (staff report included as Attachment A).
Pursuant to the California Streets and Highways Code, a copy of the resolution was
mailed to every current and proposed member lodging business. The next step in the
process is this item (before the Council on January 14, 2014) — to hold a public meeting
on the matter to provide an opportunity for public comment. The final step will be for the
Council to hold a public hearing on the matter on January 28, 2014 and to adopt a
resolution approving the Management District Plan (MDP) for the renewed NBTBID.
Management District Plan
The proposed MDP (included in Attachment A) contains the following:
• The addition of the Island Hotel Newport Beach to the NBTBID (see Section I
and Appendix 2);
4
Resolution No. 2013 — 89, A Resolution of Intention to Renew the Newport Beach
Tourism Business Improvement District
January 14, 2014
Page 3
• An assessment rate of 3% of gross, short -term room rental revenues (see
Sections I and V(C));
• A 10 -year term for the NBTBID (See Section 1);
• The list of possible NBTBID activities as authorized by the 1994 Act (see
Sections I and V(A);
• The NBTBID service plan budget (See Sections I and V(A)).
As noted in the December 10, 2013 staff report, staff appreciates that the Council would
prefer to have both a "clean" version and a redlined version of the MDP that identifies
the differences between the attached MDP (dated December 10, 2013) and the last
approved NBTBID MDP (April 2012). The formatting changes incorporated by VNB's
consultant, combined with content, grammar and punctuation changes made by both
staff and the consultant, made the redlined document very difficult to read. Staff asked
VNB's consultant to recreate a readable, redlined version of this MDP. Both the
consultant and staff attempted to do so, but the document was still illegible.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Tara Finnigan
Public Information Manager
Attachments: A. December 10, 2013 Staff Report
3
ATTACHMENT A
044".CITY OF
NEWPORT' BEACH
City Council Staff Report
Agenda Item No. 5
December 10, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949- 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan
APPROVED: 0.
TITLE: Resolution No. 2013 89, A Resolution of Intention to Renew the
Newport Beach Tourism Business Improvement District
ABSTRACT:
The Newport Beach Tourism Business Improvement District ( NBTBID) Owner's
Association is requesting the renewal of the NBTBID for a 10 -year term, at an
assessment. rate of 3% and with the addition of the Island Hotel Newport Beach.
RECOMMENDATIONS:
Approve Resolution No. 2013 — 89, A Resolution of Intention to Renew the Newport
Beach Tourism Business Improvement District; and
2. Direct the City Clerk to provide notice of the public meeting and public hearing, as
required by the California'Streets and Highways Code.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this item. The City of Newport
Beach collects the, member assessments on behalf of the NBTBID and retains 0.25% of
I% of the total assessments collected to reimburse the City for .administrative costs
associated with the NBTBID.
Resolution No. 2013 — 89, A Resolution of Intention to Renew the Newport Beach
Tourism Business Improvement District
December 10, 2013
Page 2
DISCUSSION:
Background
The NBTBID was formed by the City of Newport Beach (City) on April 28, 2009,
pursuant to the Property and Business Improvement District Law of 1994 (the 1994
Law), Streets and Highways Code Sections 36600 et seq. The City Council modified the
NBTBID's Management District Plan in April 2012 to add another lodging business, the
Newport Dunes Waterfront Resort and Marina. The NBTBID currently has seven
members including the Fairmont Newport Beach, the Hyatt Regency Newport Beach,
the Newport Dunes Waterfront Resort and Marina, the Newport Beach Marriott
Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson Newport Beach, and
the Balboa Bay Club and Resort (a.k.a., Balboa Bay Resort).
Under an agreement with the City, Visit Newport Beach, Inc. (VNB) serves as the
NBTBID's Owner's Association and oversees its administration and coordinates its
marketing and sales activities. VNB works with a committee comprised of
representatives from the seven member lodging businesses (the NBTBID committee) to
develop the NBTBID work plan and budget. The NBTBID is in the final year of a five -
year term and is scheduled to expire on April 28, 2014.
NBTBID Renewal
As presented during the City Council's November 26 Study Session, VNB notified the
City that the NBTBID's member lodging businesses wish to renew the NBTBID for an
additional 10 years, add another member (the Island Hotel Newport Beach), and
increase the assessment from 2% to 3% of gross short-term room rental revenue. Staff
received general direction from the Council to move forward with the NBTBID renewal
process, incorporating the proposed changes listed above.
Initiating the NBTBID renewal requires the submission of petitions from lodging
businesses representing more than 50% of the total annual assessment. VNB has
submitted signed petitions from eight lodging businesses (100% of the proposed
assessment) and those are on file with the City Clerk's Office.
The NBTBID renewal is a three -step process, spanning three City Council meetings. It
begins with the proposed Resolution of Intention No. 2013 -89 (Attachment A). If the
Council approves the Resolution of Intention, there will be a public meeting on this
matter on January 14, 2014. That will be followed by a public hearing on January 28,
2014. Staff will ensure all noticing, as required by the California Streets and Highways
Code, is accomplished.
5
Resolution No. 2013 — 89, A Resolution of Intention to Renew the Newport Beach
Tourism Business Improvement District
December 10, 2013
Page 3
Management District Plan
Pursuant to the request from the NBTBID owners' association, staff from the City
Attorney's Office and City Manager's Office worked with the consultant retained by VNB
to prepare a Management District Plan (MDP) for the renewed NBTBID. The proposed
MDP (included as Attachment B) contains the following:
• The addition of the Island Hotel Newport Beach to the NBTBID (see Section I
and Appendix 2);
• An assessment rate of 3% of gross, short-term room rental revenues (see
Sections I and V(C));
• A 10 -year term for the NBTBID (See Section 1);
• The list of possible NBTBID activities as authorized by the 1994 Act (see
Sections 1 and V(A);
• The NBTBID service plan budget (See Sections I and V(A)).
Staff understands that the Council would prefer to have both a "clean" version and a
redlined version of the MDP that identifies the differences between the attached MDP
(dated December 10, 2013) and the last approved NBTBID MDP (April 2012). However,
the formatting changes incorporated by the consultant, combined with content, grammar
and punctuation changes made by both staff and the consultant, made the redlined
document very challenging to read. We have asked VNB's consultant to attempt to
recreate a redlined version of this MDP — one that is readable. The consultant agreed to
do so, but that document was not available for inclusion with this staff report.
Related Item — NBTBID Modification
It should be noted that a related item, pertaining to the NBTBID's expiration date, is also
on the Council's December 10 agenda. As noted during the November 26 Study
Session and in the staff report for that item, the 1994 Law does not allow for a tourism
business improvement district to be renewed until its existing term is expired. Therefore,
it is necessary to shorten the NBTBID's current term from five years to four years and
nine months in the Management District Plan in order to immediately begin the NBTBID
renewal process. During its November 26 Regular Session, the Council approved
Resolution No. 2013 — 87, A Resolution of Intention to Modify the Management District
Plan of the Newport Beach Tourism Business Improvement District. Thus, the related
item on this evening's agenda is to hold a public meeting on the proposed modification.
The final step in the modification will be to hold a public hearing on January 28, 2014.
Resolution No. 2013 — 89, A Resolution of Intention to Renew the Newport Beach
Tourism Business Improvement District
December 10, 2013
Page 4
Cultural Arts Programming Funding
Also at the November 26 City Council Study Session, VNB and the City Council
discussed financial support for cultural arts in the City. VNB offered $150,000 per year
in support of programs ranging from theater to art shows to other performances. This
item requires additional research, particularly related to the source and mechanism for
the funding, and staff will return to the City Council early next year with a mechanism for
implementing VNB's financial support for local arts programs.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
laac '
Tara Finnigan
Public Information Manager
Attachments: A. Resolution No. 2013 - 89
B. Management District Plan for Renewed NBTBID
Attachment A
*;_ •2• 1,
WHEREAS, the Property and Business Improvement Law of 1994, Streets and
Highways Code Sections 36600 et seq., authorizes cities and counties to establish property
and business improvement districts for the purposes of promoting tourism; and
WHEREAS, the City Council created the Newport Beach Tourism Business
Improvement District (NBTBID) by Resolution No. 2009 -21 on April 28, 2009; and
WHEREAS, Visit Newport Beach (VNB) representatives, lodging business owners,
and representatives from the City of Newport Beach (City) have met to consider the renewal
of the NBTBID; and
WHEREAS, Visit Newport Beach has drafted a Management District Plan (MDP)
which sets forth the proposed boundary of the NBTBID, a service plan and budget, and a
proposed means of governance; and
WHEREAS, a majority of the lodging business owners subject to assessment under
the NBTBID have petitioned the City Council to renew the NBTBID.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals set forth herein are true and correct.
Section 2: The City Council finds that the lodging businesses that will pay more
than fifty percent (60 %) of the assessment proposed in the MDP have signed and submitted
petitions in support of the renewal of the NBTBID. The City Council accepts the petitions and
adopts this resolution of intention to renew the NBTBID and to levy an assessment on certain
lodging businesses within the NBTBID boundaries in accordance with the Property and
Business Improvement District Law of 1994.
Section 3: The City Council finds that the MDP satisfies all requirements of
California Streets and Highways Code Section 36622.
Section 4: The City Council declares its intention to renew the NBTBID and to levy
and collect assessments on lodging businesses within the NBTBID boundaries pursuant to
the Property and Business Improvement District Law of 1994.
1
0
Section 5: The boundaries of the NBTBID shall be the boundaries of the City of
Newport Beach. Please see the attached map, incorporated herein as Exhibit A. The
renewed NBTBID includes eight (8) lodging businesses located within the boundaries of the
City of Newport Beach, and other hotels and resorts that may join the NBTBID in the future.
The NBTBID shall include the Fairmont Newport Beach, the Hyatt Regency Newport Beach,
the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson
Newport Beach, the Balboa Bay Club and Resort (a.k.a., Balboa Bay Resort), the Newport
Dunes Waterfront Resort and Marina, the Island Hotel Newport Beach, and any other hotel
and resort business that may join NBTBID in the future.
Additional hotels and resorts that wish to pay the assessment and receive NBTBID
services in the future may do so upon the approval of a majority of the then existing
membership of the NBTBID, and through the execution of an agreement with the City,
approved by the City Council, after a noticed public hearing consistent with California Streets
and Highways Code Sections 36623 and 36637, as the same may be amended from time -to-
time.
Section 6: The name of the renewed district shall remain Newport Beach Tourism
Business Improvement District.
Section 7: The annual assessment rate is three percent (3.0 %) of gross short -term
(stays less than thirty (30) calendar days) room rental revenue. Because programs will not
be designed to attract certain stays, certain types of stays will not be assessed, as described
in the MDP.
Section 8: The assessments levied for the NBTBID shall be applied to provide
specific benefits directly to assessed businesses by increasing room night sales. Marketing,
sales promotions, advertising, and communications will increase overnight tourism and market
assessed businesses as tourist, meeting and event destinations, thereby increasing room night
sales. Funds remaining at the end of any year may be used in subsequent years in which
NBTBID assessments are levied as long as they are used consistent with the requirements of
this resolution and the MDP.
Section 9: The NBTBID will have a ten (10) year term unless renewed or
terminated pursuant to the California Streets and Highways Code.
Section 10: Bonds will not be issued.
Section 11: The time and place for the public meeting to hear testimony on renewing
the NBTBID and levying assessments is set for January 14, 2014, at 7:00 p.m., or as soon
thereafter as the matter may be heard, at the Council Chambers located at 100 Civic Center
Drive, Newport Beach, CA 92660.
Section 12: The time and place for the public hearing to renew the NBTBID and levy
the assessment is set for January 28, 2014, at 7:00 p.m., or as soon thereafter as the matter
may be heard, at the Council Chambers located at 100 Civic Center Drive, Newport Beach,
9
CA 92660. The City Clerk is directed to provide written notice to the lodging businesses
subject to assessment of the date and time of the hearing and to provide that notice as
required by California Streets and Highways Code Section 36623.
Section 13: At the public hearing the testimony of all interested persons for or
against the establishment of the NBTBID may be received. If, at the conclusion of the public
hearing, there are of record written protests by the owners of the lodging businesses within
the proposed NBTBID that will pay fifty percent (50 %) or more of the estimated total
assessment of the entire NBTBID, no further proceedings to renew the NBTBID shall occur
for a period of one (1) year.
Section 14: The complete MDP is on file with the City Clerk and may be reviewed
upon request.
Section 15: The City Council finds the adoption of this resolution of intention is not
subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section
15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because
it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 16: If any section, subsection, sentence, clause or phrase of this resolution
is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this resolution. The City Council
hereby declares that it would have passed this resolution, and each section, subsection,
clause or phrase hereof, irrespective of the fact that any one or more sections, subsections,
sentences, clauses and phrases be declared invalid or unconstitutional.
Section 17: This resolution shall take effect immediately upon its adoption by the
City Council and the City Clerk shall certify the vote adopting this resolution.
ADOPTED this 10'h day of December, 2013.
ATTEST:
Leilani I. Brown,
City Clerk
3
Keith D. Curry,
Mayor
10
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EXHIBIT A
District Boundaries
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Balboa Bay Club and Resort
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UPPER
NEWPORT
BAY
133
Radisson Newport . Beach
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Fairmont Newport Beach
73
Newport Beach Marriott BayvieW
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4PO
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Q4 G
p�0 Island Hotel Newport Beach m
Hyatt Regency Newport Beach �a
® ®' Newport . Beach Marriott Hotel &
Newport . Dunes Waterfront Resort & Marina
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NI
11
Attachment B
December io, 2013
MANAGEMENT
DISTRICT PLAN
2014-2024
12
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I. OVERVIEW ..----..,-........-..............-_._--.......-........l
I[ IMPETUS .....................................................................................................................................................
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II[ BACKGk{){/KO}, .....................................................................................................................................
4
I\[ DC)l}KD]/\RY ...---------`~.,--'—.--.`.._-_-.^---,_-._._-.,...-._.5
V. BUDGET AND SE}[vlCEG .....................................................................................................................
6
A. Annual Service Plan ............................................................................................................
6
B. Determination nf Specific Benefit -- ..............................................................................
7
C. Assessment ............................ .......................... ................ .......................................
......... 8
D. Time and Mariner for Collecting Assessments ...................................................................
P
E. Penalties and Interest ...........................................................................................................
F7
\T. GOVERNANCE -----..----,-,,`.-.-.-,---`------------.---.,`'1D
A. Owners' Association ...................................................................................................
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BL Brown Act and California Public Records Act Compliance .....................................
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C. Annual Report ...................................................................................................................
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APPENDIXl- LAW .......................................................................................................................................
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13
C)VERVIEW
Administered by Visit Newport Beach, Inc. (VNB), the Newport Beach Tourism Business
Improvement District (NBTBID) is a business improvement district • created to provide specific
benefits to its member businesses, by funding marketing and sales promotion efforts for the
assessed businesses. The NBTBID was formed by the City of Newport Beach (City) in 2009,
pursuant to the Property and Business Improvement District Law of 1994, Streets and Ighways
Code Sections 36600 et sect'. Upon the request of the NBTBID Owner's Association, the City
Council modified the NBTBID in 2012 to add another lodging business. The NBTBID is now
approaching the end of its original five -year term and the member businesses wish to renew the
NBTBID for an additional ten (10) years.
Location: The City of Newport Beach. The NBTBID includes eight (8) lodging businesses
located within the boundaries of the City oENewportBeach.
The NBTBID shall include the Fairmont Newport Beach, the Hyatt Regency
Newport Beach, the Newport Beach -Marriott Bayview, the Newport Beach Marriott
hotel :& Spa, the Radisson Newport Beach, the Balboa Bay Club and Resort (a.k.a.,
Balboa Bay Resort), the Newport Dunes Waterfront Resort and Marina, The Island
Hotel Newport Beach, and any other hotel and resort business that may join the
NBTBID in the Future.
Additional hotels and resorts that wish to pay the assessment and receive NBTBID
services in the future may do so upon the approval of a majority of the then existing
membership of the NBTBID, and through the execution of an agreement with the
City approved by the City Council consistent with the Property and Business
Improvement District Law of 1994, Streets. and Highways Code Sections 36600 et
seq., as the same may .beamended from time to time.
Services: The NBTBID is designed to provide specific benefits directly to assessed businesses
by increasing room night sales. The improvements and activities consist of sales
marketing and direct sales programs to increase overnight tourism and market the
assessed businesses as tourist, meeting and event destinations, thereby increasing
room night sales. These same improvements and activities are proposed for each
year of the NBTBID's ten (10) year term.
Budget: The total NBTBID annual budget for the initial year, and subsequent years, is
anticipated to be approximately two and one -half million dollars ($2,500,000). This
budget is expected to fluctuate as room sales do but is, not expected to significantly
change over the NBTBID's ten (10) year term.
Cost: The annual' assessment rate is three percent (3.0 %) of gross shorc-ccrm (i.e., stays of
thirty (30) calendar days or less) room rent-at revenue. Because programs will not be
designed to attract certain stays, certain types of stays will not be assessed, as
described in Section V(C).
Overview I Newport Beach Tourism Business Improvement District
14
Duration: The proposed NBTBID will have a ten (10) year term. The NBTBID assessment
will be implemented beginning February 1, 2014, and will be in effect for ten (10)
years through January 31, 2024. After ten (10) years, the petition and City Council
hearing process must be repeated for the NBTBID to be renewed. Also, once per
year beginning on the anniversary of the formation of the NBTBID, there is a thirty
(30) calendar day period in which assessed businesses paying more than fifty percent
(50 %) of the assessments may protest and initiate a City Council hearing to terminate
the NBTBID.
Management: VNB will serve as the NBTBID's Owners' Association. The Owners' Association is
charged with managing funds and implementing programs in accordance with this
Plan, and must provide annual reports to the City Council.
Renewal: The NBTBID renewal requires submission of petitions from lodging businesses
representing more than fifty percent (50 %) of the total annual assessment, followed
by a City Council public meeting and public hearing and an opportunity for written
protest. The assessed lodging business owners will receive a notice of the public
meeting and the public hearing by mail. If there is no majority protest, the City
Council may adopt a resolution renewing the NBTBID.
Overview I Newport Beach Tourism Business Improvement District
15
11. IMPETUS
There are several reasons why the NBTBID should be renewed; the most compelling reasons are as
follows:
L The Need to Increase Occupanc:v
The renewal of the NBTBID is a proactive effort to provide supplemental funding for
tourism promotion beyond that provided by the City. The funding will ensure that adequate
financing exists for the investment required to increase occupancy in the lodging industry
and be competitive in the conference segment of the tourism market. The investment will
cover an expanded marketing and promotional budget needed to reach this market segment.
1 An Opporttmiry for Increasing Ch)- Tax Revenues
As occupancy rates increase, so too will the City's TOT revenue. With stable public /private
funding for tourism marketing efforts, annuall occupancy rates should increase significantly
as new marketing and sales promotion programs are implemented. Greater occupancy will
also produce an increase in sales tax revenues from tourism - related spending. The renewal of
the NBTBID, in partnership with VNIB, creates a stable funding source tied directly to
tourism promotion.
J. Stable Funding for Tourism Promotion
The NBTBID will provide a stable source of funding for consistent tourism promotion
efforts. The NBTBID will provide funding for tourism promotion free of the political and
economic circumstances that can reduce or eliminate government funding for tourism
promotion.
Impetus I Newport Beach Tourism Business Improvement District
16
II1. BACKGROUND
Tourism Business Improvement Districts (TBIDs) are an evolution of the traditional Business
Improvement District. The fast TBID was formed in West Hollywood, California in 1992. Since
then, over 80 California destinations have followed suit. In recent years, other states have begun
adopting the California model— Washington, Montana, and Tcxas have adopted TBID laws.
Several other states are in the process of adopting their own legislation. And, some cities, like
Portland, Oregon, have utilized
Number of Tine OperAing Per Year their charter powers to create
70 ..,__ — _ _ _ _ _ ___- _ _ ___ __ -__ _ __- ,.__ TBIDs without a state law.
N W Y N T J 0 V O ti
California's TBIDs collectively raise
over one hundred fifty million
dollars ($150,000,000) annually for
local destination marketing. With
competitors raising their budgets,
and increasing rivalry for visitor
dollars, it is important that the
Newport Beach lodging businesses
continue their investment in stable,
lodging- specific marketing
programs.
TBIDs utilize the efficiencies of
private - sector operation in the market -based promotion of tourism districts. TBIDs allow lodging
business owners to organize their efforts to increase room night sales. Lodging business owners
within the TBID pay an assessment and those funds are used to provide services that increase room
night sales.
In California, TBIDs are formed pursuant to the Property and Improvement District Law of 1994.
This law allows for the creation of a special benefit assessment district to raise funds within a
specific geographic area. The key difference between TBIDs and other spedal benefit assessment di trictr it that
funds rained are allocated to the prrivate, non -km & coogradon governing the diRrid
There are many benefits to a TBID:
• Funds must be spent on services and improvements that provide a specific and special benefit
only to those who pay;
• Funds cannot be diverted to general government programs;
• They are customized to fit the needs of the assessed businesses in each destination;
• They allow for a wide range of services;
• They are designed, created andgoverned by those who will pay the assessment; and
• They provide a stable funding source for tourism promotion.
Background I Newport Beach Tourism Business Improvement District
17
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—
20 -
-
---
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s
• 1
N W Y N T J 0 V O ti
California's TBIDs collectively raise
over one hundred fifty million
dollars ($150,000,000) annually for
local destination marketing. With
competitors raising their budgets,
and increasing rivalry for visitor
dollars, it is important that the
Newport Beach lodging businesses
continue their investment in stable,
lodging- specific marketing
programs.
TBIDs utilize the efficiencies of
private - sector operation in the market -based promotion of tourism districts. TBIDs allow lodging
business owners to organize their efforts to increase room night sales. Lodging business owners
within the TBID pay an assessment and those funds are used to provide services that increase room
night sales.
In California, TBIDs are formed pursuant to the Property and Improvement District Law of 1994.
This law allows for the creation of a special benefit assessment district to raise funds within a
specific geographic area. The key difference between TBIDs and other spedal benefit assessment di trictr it that
funds rained are allocated to the prrivate, non -km & coogradon governing the diRrid
There are many benefits to a TBID:
• Funds must be spent on services and improvements that provide a specific and special benefit
only to those who pay;
• Funds cannot be diverted to general government programs;
• They are customized to fit the needs of the assessed businesses in each destination;
• They allow for a wide range of services;
• They are designed, created andgoverned by those who will pay the assessment; and
• They provide a stable funding source for tourism promotion.
Background I Newport Beach Tourism Business Improvement District
17
IV. BOUNDARY
The NBTBID will include eight (8) lodging businesses, available for public occupancy within the
boundaries of the City of Newport Beach, and other hotels and resorts that may join NBTBID in
the future.
The boundary, as shown in the map below, currently includes eight (8) lodging businesses. A
complete listing of lodging businesses within the NBTBID can be found in Appendix 2.
55
i
1
ygw .' =a. 1
Newport Beath
City Limits O
Balboa Bay Club and Resort
•
NFwP
ORT
e4 �
Pq C /FCC
OCFAN
UPPER
NEWPORT
BAY
133
Radisson Newport Beach
•
•
Fairmont Newport Beach
73
Newport Beach Marriott Bay view
S
T1
TO P
�E G
O Q
Pie Island Hotel Newport Beach m
Hyatt Regency Newport Beach o
• to • Newport Beach Marriott Hotel &
Newport Dunes Waterfront Resort & Marina
'�
Boundary I Newport Beach Tourism Business Improvement District
N
18
V. BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred, or privileges granted directly
to, the assessed businesses that are not provided to those not charged, and which do not exceed the
reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and
services provided with the NBTBID funds are sales, marketing, advertising, and promotional
programs available only to assessed businesses.
In the initial year of the renewed term, there will be funds carried over from the NBTBID's prior
term. A service plan budget has been developed to deliver services that benefit businesses
throughout the NBTBID. A detailed annual budget will be developed by the Owners' Association
and approved by the City Council. The table below illustrates the initial annual budget allocations.
Sales Administration 6.25% $156,250.00
Contingency 1.50% $37,500.00
City Collection 0.25% $6,250.00
Total Annual Budget 100% $2,500,000.00
Actual annual revenues will fluctuate due to market conditions, but are not expected to change
significantly over the term of the district. The budget above is for the initial year, the same activities
are proposed for subsequent years. VNB shall adopt specific budgets after the initial year. A
description of the proposed improvements and activities for the initial year of operation is below.
Sales Marketing — Direct Sales
A sales marketing program will promote assessed businesses as tourist, meeting, and event
destinations. The programs will be focused on attracting group sales to assessed businesses. Only
assessed businesses will receive benefits featured in, and obtain leads from, the sales and marketing
activities. The sales and marketing program will have a central theme of promoting the assessed
Newport Beach lodging businesses as desirable places for group events. The program will have the
goal of increasing overnight visitation and room night sales at assessed businesses, and may include
the following activities:
• Internet marketing efforts to increase awareness and optimize intemet presence for assessed
businesses;
• Print ads in magazines and trade publications featuring assessed businesses and targeted at
potential group meeting planners;
• Sales missions and sales calls to attract groups to assessed businesses;
• Costs related to providing sales marketing and direct sales programs;
• Client events designed to book new and returning groups at assessed businesses;
• Familiarization tours of assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers and
maps featuring assessed businesses;
EMBudget and Services I Newport Beach Tourism Business Improvement District
19
• Attendance of professional industry conferences and affiliation events on behalf of assessed
businesses; and
• Lead generation activities designed to attract group events to assessed businesses.
The sales solicitatiorr portion of the budget will be utilized to support direct sales efforts; including
personnel and sales support teams that conduct outreach to clients, provide site inspections and
work wgith assessed hotels to close select group business..
Sales — Administration
The sales administration portion of the budget will be utilized for administrative costs related to
providing the. sales programs: This may include office costs, and other general administrative costs,
such as insurance, legal, and accounting fees. Legal. fees may include defense of the NBTBID.
City Administration Fee
The City of Newport Beach shall be paid a fee equal to one, quarter of one percent (0.259/6) of the
amount of assessment collected to cover its costs of collection and administration.
Contingency
,A prudent portion of the budget will be held in -a contingency reserve. These funds may be used to
cover unanticipated program or administrative costs. if, at expiration of the NBTBID there are
contingency funds remaining and hotels wish to renew the district, the contingency funds could be
used for the renewal effort.
B. Determination of'Speciric$encUt
State law requires that assessment funds be expended on a specific benefit conferred directly, to the
assessed businesses that is not provided. to those not charged, and which does not exceed. the
reasonable cost to the City conferring the benefit. The services in this Management District Plan are
designed to provide targeted benefits directly to assessed businesses. 'These services are tailored not
to serge the general public, but rather to serve the specific assessed businesses within the NBTBID
(e.g., the proposed activities are specifically targeted to increase room night sales for assessed
businesses within the boundaries of the NBTBID, and are narrowly tailored); NBTBID funds will
be used exclusively to provide die specific benefit of increased room night sales directly to the-
businesses. Non- assessed businesses will not be £earned in NBTBTD programs and will not receive
sales leads from them. The activities paid for from assessment revenues are business services
constituting and providing specific benefits to the assessed businesses. To the extent any non-
paying business benefits from. TBID programs, that portion of the program will be paid for with
non - assessment funds.
Further„ the assessment may be utilized to provide specific government services directly to the
assessed, businesses that are not provided to those not charged, and which. do not exceed the
reasonable costs to the City providing the services. Marketing like that to be provided by the:
NBTBID has been and is provided by the City, through its contract with. VNB. The amount of the
assessment is no more than necessary to cover the reasonable costs of the proposed activities, and
the manner in which the costs are allocated to a business owner bear a fair share and bears a
reasonable relationship to the assessed businesses' benefits received from the proposed activities.
NBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of
such services. Funds will be managed by the. Owners Association, and reports submitted on an
annual basis to the City. Only assessed businesses will be featured in marketing materials, receive
Budget and Services I Newport Beach Tourism Business Improvement District
20
sales leads generated from NB-l'BID- Eunded activities, be Featured in advertising campaigns, and
benefit from other NB1'BID- funded services. Non - assessed businesses will not receive these, nor
any other, NBTBID - funded services and benefits.
C. Assessment
The annual assessment rate is three (3) percent of gross short -term (stays of thirty (30) calendar days
or less) room rental revenue. Based on the benefit received, assessments will not be collected on
stays of more than thirty (30) consecutive calendar days. Based on the benefit received and because
these types of stays will not be sought after by the NBTBID programs, the following stays are not
subject to TOT under die Newport Beach Municipal Code (Section' 3.16.040) and are not subject to
assessment:
e Stays by any officer or employee of
payment of transient occupancy taxes
or international treaty,
a foreign, government who is exempt from
by reason of express provision of Federal law
• Stays by a transient occupying a hotel pursuant to a qualifying rental agreement
entered into prior to the first day of occupancy;
s Stays by an employee of an airline company who is occupying a hotel room in the
course of his or her employment, but only when the room is rented by the airline
employer pursuant to a qualifying rental: agreement that has been preapproved by the
City's Finance Director;
u Stays by any person or transient occupying a hotel room provided without rent
charged (complimentary) to the person or transient by the operator, including but
not limited to:.
1. Rooms provided to charitable organizations;
2. Rooms provided to meeting planners who may book future hotel
rooms and provide 'business and conferencing opportunities for the
economic benefit of the hotel;
3. Rooms provided to displeased guests; and /or
d. Rooms provided to hotel employees.
The term "rent" shall mean the consideration charged, whether or not received, for the occupancy
IoE space in a lrotcl valued in money, whether to be received in money, goods, labor or otherwise,
including all receipts, cash, credits, and property and services of any kind or nature, without any
deduction. Rent shall include the consideration charged by a business for accommodations,
including any (t1) un- refunded advance rental deposits or (B) separate charges levied for items or
services' which are part of such accommodations including, but not limited to, furniture, fixtures;
appliances, linens, towels, non- coin - operated safes; utilities (such as energy surcharges) and mud
scnice. Rent shall not include any federal, state or local taxes collected, including but not limited to
transient occupancy taxes.
The amount of assessment, if passed on to each transient, shall be disclosed in advance and
separately stated from the amount of rent charged and any other applicable. taxes, a nd.each transient
shall receive it receipt for payment from the business. The assessment shall not be considered
revenue for any purposes, including calculation of transient occupancy taxes.
Bonds may not be issued.
Budget and Services I Newport Beach Tourism Business bnprovement District
21
D. Time and Manner for Collecting Assessments
The NBTBID assessment will be implemented beginning February 1, 2014 and will continue for 10
years through January 31, 2024. The City, or its designee, is responsible for collecting the assessment
on a monthly basis (including any delinquencies, penalties and interest) from each assessed business
located in the boundaries of the NBT 31D. The City, or its designee, shall take all reasonable efforts
to collect the assessments from each assessed business. The City shall forward the assessments
collected to the Owners' Association.
E. Penalties and Interest
1. Any assessed business which fails to remit any assessment within the time required shall pay a
penalty of ten (10) percent of the amount of the assessment in addition to the amount of the
assessment (initial penalty).
2. Any business that fails to remit the assessment and initial penalty on or before a period of thirty
(30) calendar days following the date on which the assessment first became delinquent shall pay a
second delinquency penalty of ten (10) percent on both the amount of the assessment and the initial
penalty (second penalty).
3. In addition to the penalties imposed, any assessed business that fails to remit any assessment
shall pay interest on the amount of assessment that is due and owing at the rate of one and one -half of
one percent (1 -'/2 %) per month for each month or portion of a month that the assessment remains
unpaid exclusive of penalties. For purposes of collection, every penalty imposed and such interest as
accrues shall become a part of the assessment requited to be paid.
4. In addition to the penalties and interest provided in this section, the assessed business shall
reimburse the City or Owners' Association for costs in performance of an audit if, as a result of the
audit, it is determined there was any intentional misrepresentation by the assessed business with respect
to the amount of assessment due or there is a five percent (5 9/o) or greater discrepancy between the
amount of annual assessment due and the amount paid by the business. Such reimbursement shall be
paid by business within thirty (30) calendar days of the assessed business being notified in writing of the
amount of audit costs.
F. Annual Budget
The total ten (10) year improvement and service plan budget is projected at approximately two and
one -half trillion dollars ($2,500,000) annually, or twenty-five trillion dollars ($25,000,000) through
the ten (10) year term. This amount may fluctuate as sales and revenue increase at assessed
businesses.
Budget and Services I Newport Beach Tourism Business Improvement District
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N'I. GOVERNANCE
A. Owners' Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to
Streets and Highways Code section 36651, to identify the body that shall implement the proposed
program, which shall be the Owners' Association of the NBTBID as defined in Streets and
Highways Code section 36614.5. The City Council has determined that Visit Newport Beach, Inc.
will serve as the Owners' Association for the NBTBID.
B. Brmvn Act and California Public Records Act Compliance
An Owners' Association is a private entity and may not be considered a public entity for any
purpose, nor may its board members or staff be considered to be public officials for any purpose.
The Owner's Association is, however, subject to government regulations relating to transparency,
namely the Ralph M, Brown Act and the California Public Records Act. These regulations are
designed to promote public accountability. The Owners' Association is considered a legislative body
under the Ralph M. Brown Act (Government Code sections 54950 et seg.). Thus, meetings of the
VNB board and certain committees, to the extent they discuss the TBID, must be held in
compliance with the public notice and other requirements of the Brown Act. The Owners'
Association is also subject to the record keeping and disclosure requirements of the California Public
Records Act.
C. Annual Report
VNB shall present an annual report at the end of each year of operation to the City Council
pursuant to Streets and Highways Code section 36650 (see Appendix 1).
Governance I Newport Beach Tourism Business Improvement District
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APPENDIX I - LAW
Property And Business Improvement District Law of 1994
Cal Sts & Hy Code § 36600 (2013)
*as This document is current through the 2013 supplement as.
(All 2012 legislation, 2012 Govemor's Reorg. Plan No. 2 and all
propositions approved by the electorate at the June and November 2012 elections)
§ 36600. Citation of part
This part shall be known and may be cited as the "Property and Business Improvement District
Law of 1994."
§ 36601. Legislative findings and declarations
The Legislature finds and declares all of the following.
(a) Businesses located and operating within the business districts of this state's communities are
economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate
facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance
of the business districts of its cities in order to create jobs, attract new businesses, and prevent the
erosion of the business districts.
(c) It is of particular local benefit to allow cities to fund business related improvements,
maintenance, and activities through the levy of assessments upon the businesses or real property that
benefits from those improvements.
(d) Assessments levied for the purpose of providing improvements and promoting activities
that benefit real property or businesses are not taxes for the general benefit of a city, but are
assessments for the improvements and activities which confer special benefits upon the real
property or businesses for which the improvements and activities are provided.
S 36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize
cities to levy assessments within a business improvement area. This part does not affect or limit any
other provisions of law authorizing or providing for the furnishing of improvements or activities or
the raising of revenue for these purposes.
§ 36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances
providing for a different method of levying assessments for similar or additional purposes from
those set forth in this part. A property and business improvement district created pursuant to this
part is expressly exempt from the provisions of the Special Assessment investigation, Limitation and
Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
Appendix 1— Law I Newport Beach Tourism Business Improvement District
24
§ 36603.5. Part prevails over conflicting provisions
Any provision in this part that conflicts with any other provision of law shall prevail over the
other provision of law.
§ 36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining
provisions shall remain in full force and effect. Assessments levied under this part are not special
taxes.
§ 36605. [Section repealed 2001.1
§ 36606. "Assessment"
"Assessment" means a levy for the purpose of acquiring, constructing, installing, or maintaining
improvements and promoting activities which will benefit the properties or businesses located
within a property and business improvement district.
S36607. "Business"
"Business" means all types of businesses and includes financial institutions and professions.
§ 36608. "City"
"City" means a city, county, city and county, or an agency or entity created pursuant to Article 1
(commencing with Section 6500) of Chapter 5 of Ditition 7 of Title I of the Government Code, the public
member agencies of which includes only cities, counties, or a city and county, or the State of
California.
§ 36609. "City council"
"City council" means the city council of a city or the board of supervisors of a county, or the
agency, commission, or board created pursuant to a joint powers agreement and which is a city
within the meaning of this part.
§ 36610. 'Improvement'
"Improvement" means the acquisition, construction, installation, or maintenance of any tangible
property with an estimated useful life of five years or more including, but not limited to, the
following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs.
(e) Trash receptacles and public restmoms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
Appendix 1— Law I Newport Beach Tourism Business Improvement District
25
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets.
(j) Facilities or equipment, or both, to enhance security of persons and property within the area.
(k) Ramps, sidewalks, plazas, and pedestrian malls.
0) Rehabilitation or removal of existing structures.
§ 36611. "Property and business improvement district "; "District"
"Property and business improvement district," or "district," means a property and business
improvement district established pursuant to this part.
536612. "Property"
"Property" means real property situated within a district.
§ 36613. "Activities"
"Activities" means, but is not limited to, all of the following:
(a) Promotion of public events which benefit businesses or real property in the district.
(b) Furnishing of music in any public place within the district.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment.
(e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
municipal services supplemental to those normally provided by the municipality.
(f) Activities which benefit businesses and real property located in the district.
§ 36614. "Management district plan "; "Plan"
"Management district plan" or "plan" means a proposal as defined in Section 36622.
§36614.5. "Owners' association"
"Owners' association" means a private nonprofit entity that is under contract with a city to
administer or implement activities and improvements specified in the management district plan. An
owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An
owners' association is a private entity and may not be considered a public entity for any purpose, nor
may its board members or staff be considered to be public officials for any purpose.
Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title S of the Government Code), at
all times when matters within the subject matter of the district are heard, discussed, or deliberated,
and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Dioidon 7
of Title 1 of the Government Code), for all documents relating to activities of the district.
§ 36615. "Property owner "; "Business owner "; "Owner"
"Property owner" means any person shown as the owner of land on the last equalized
assessment roll or otherwise known to be the owner of land by the city council. "Business owner'
means any person recognized by the city as the owner of the business. "Owner" means either a
SolAppendix I — Law I Newport Beach Tourism Business Improvement District
26
business owner ora property owner. The city council has no obligation to obtain other information
as to the ownership of land or businesses, and its determination ofowncrship shall be final and
conclusive for the purposes of this part. Wherever this part requires the signature of the property
owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this
part requires, the signature of the business owner, the signature of the authorized agent of the
business owner shall be sufficient-
§36616. "Tenant"
"Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit, other
than an Owner.
S 36617. Alternate method of financing certain improvements and activities; Effect on other
provisions
This part provides an alternative method of financing certain improvements and activities. "fhe
ptovisions of this part shall not affect or limit any other provisions of law authorizing or prow ding
for the furnishing of improvements or activities or the raising of revenue for these purposes. Every
improvement area established pursuant to the Parking and Business Improvement Area Taw of 1989
(part 6 (commencing with Section 36500) of this division) is valid and.effective and is unaffected by
dtis pate.
536620. Establishment of property and business improvement district
A property and business improvement district may be established as provided in this chapter.
5 36620.5. Requirement of consent of city council
A. county may not form a district within the territorial jurisdiction of a city without-the consent
of the city council of that city. A city may not form a district within the unincorporated territory of a,
county without the consent of the board of supervisors of that county. A city may not forma
district within the territorial jurisdiction of another city witbout the consent of the city council of the
other city.
§ 36621. Initiation of proceedings; Petition of property or business owners in proposed
district
(a) Upon the submission of a written petition, signed by the property or business owners in the
proposed district who will pay more than 50 percent of the assessments proposed to be levied, the
city council may initiate proceedings to form a district by the adoption of a resolution expressing its
intention to form a d "stuct. The amount of assessment attributable to property or a business owned
by the same property or business owner that is in excess of 40 percent of the amount of all
assessments proposed to be levied shall not be included in determining whether the petition is
signed by property or business owners who will pay more than 50 percent of the total amount of
assessments proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a
summary of the management district plan. That summary shall include all of the following:
(1),A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained.
Appendix 1 — Law I Newport Beach Tourism Business Improvement District
27
(3) Information specifying that the complete management district plan shall be furnished upon
request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description, of the proposed activities and improvements, the amount of the
proposed assessment, a statement as to whether the assessment will be levied on property or
businesses within, the district, a statement as to whether bonds will be issued, and a description of
the exterior boundaries of the proposed district. The descriptions and statements do not need to be
detailed and shall be sufficient if they enable an owner to generally identify the- narure.and extent of
the improvements and activities and the location. and extent of the proposed district.
(2) A time and place fora public hearing on the establishment of the property and business
improvement district and the levy of assessments, which. shall be consistent with the requirements of
Section 36623.
5 36622. Contents of management district plan
The management district plan shall contain all of the: following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate
each parcel of property and, if businesses are to be assessed, each business within the distuct.'If the
assessment will be.levied on businesses, a map that identifies the district boundaries in.sufficient
detail to allow a business owner to reasonably determine whether a business is located within the
district boundaries. If the assessment will be levied on property and businesses, a map of the district
in sufficient detail to locate each parcel of property and to allow a business owner to reasonably
determine whether a business is located within the, district boundaries.
(b) The name of the proposed district.
(c) t1 description of the boundaries of the district, including the boundaries of benefit zones,
proposed for establishment or extension in a manner sufficient to identify the affected lands and
businesses included. The boundaries of a proposed property assessment district shall not overlap
with the boundaries of another existing property assessment district created pursuant to this part.
Tliis part does not prohibit the boundaries of a district created pursuant to this part to overlap with
other assessment districts established pursuant to other provisions of law, including„ but not limited
to, the Parking and Business ImprovcmentArea Law of 1989 (Part 6 (commencing, with Section
36500)). This part does not prohibit the boundaries of a business assessment district created
pursuant to this part to overlap with another business assessment district created pursuant to thiss
part. This part does not prohibit the Boundaries of a business assessment district created pursuant to.
this part to overlap with a property assessment district created pursuant to this part.
(d) The improvements and actinides proposed for each year of operation of the district and the
maximum . cost thereof. If the improvements and activities proposed for each year of operation . are
the same, a description of the first year's proposed improvements and activities and.a statement that
the same improvements and activities are proposed for subsequent years shall satisfy the
requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance and
operations, and debt service in each year ,of operation of the district. I1 the assessment is levied on
businesses, this - amount may be estimated based upon the assessment rate. If the total annual
amount proposed to be expended in each year of operation of the district is not significantly
different, the amount proposed to be expended in the initial year and a statement that a similar
amount applies to subsequent years shall satisfy the requirements of this subdivision.
Appendix 1 —Law I Newport Beach Tottcism'Business hnprovement District
28
(f) The proposed source or sources of financing, including the proposed method and basi's of
levying the assessment in sufficient detail to allow each property or business owner to calculate the
amount of the assessment to be levied against his or her property or business. Theplan: also shall
state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In anew district, the
maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10
years. Notwithstanding these limitations, a district created pursuant to this part to finance. capital
improvements with bonds may levy assessments until the maximum maturity of the bonds. The
management district plan may set forth specific increases in assessments for each year of operation
of the district.
(i) The proposed time for implementation and completion of the management district plan.
(j) Any proposed rules and regulations to be applicable to the district.
(k) A list of the properties or businesses to be assessed, including the assessor's parcel ntanbers
for properties to be assessed, and a statement of the method or methods by which the expenses of a
district will be imposed upon benefited real property or businesses, in proportion to the benefit
received by the property or business; to defray the cost thereof, including operation and
maintenance. The plan may provide that all or any class or category* of real property which is exempt
by law from real property taxation may nevertheless be included within the boundaries of the district
but shall not be subject to assessment on real property.
(1) Any other item, or matter required to be incorporated therein by the city council.
3662. Procedure to levy assessment
(a) :If a city council proposes to levy a new or increased property assessment, the notice and
protest and hearing procedure shall comply with Seelion 53753 of llte-Government Code.
(b) If a'. city council proposes to levy a new or increased business assessment, the notice and
protest and heating procedure shall comply with Section 54954.6 of the Govenimefit. Cade; except that
notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be
made orally or in writirfg by any interested person..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, A wtitten.protest may be withdrawn in writing at any time
before the conclusion of the public hearing. Each written protest shall contain ,a description of the
business in which the person subscribing the protest is interested sufficient to idendfv the business
and, if a person subscribing is not shown on the official records of the city as the owncrof the
businessi the protest-sball contain or be accompanicd,by written evidence that the person
subscribing is the owner of the business or the authorized representative. A written protestthat does
not comply with this section shall not be counted in determining a majority protest. If written
protests are.received from the owners orauthotized representatives of businesses in the proposed
district that 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 50 percent, no further proceedings to levy
die proposed assessment against such businesses, as contained in the 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.
(c) If a city council proposes to conduct a single proceeding to levy both a new orincreased
property assessment and a new or increased business assessment, the notice and.protest and hearing
procedure for theproperry assessment shall comply with subdivision (a), and the notice and protest
Appendix l — Law I Newport Beach Tourism Business Improvement District
R+l
and hearing procedure for the business assessment shall comply with subdivision (b). If a majority
protest is received from either the property or business owners, that respective portion of the
assessment shall not be levied. The remaining portion of the assessment may be levied unless the
improvement or other special benefit was proposed to be funded by assessing both property, and
business, owners.
§ 36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt,
revise; change, reduce, or modify the proposed assessment or the type or types of improvements
and activities to be funded with the revenues from the assessments. Proposed assessments may only
be revised by reducing any ot'all of them. At the public hearing, the city council may only make
changes in, to, or from the boundaries of the proposed property and business improvement. district
that will exclude territory that will not benefit from the proposed improvements or activities. Any
modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected
in the notice and map recorded pursuant to Section 36627.
§ 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish the proposed property
and business improvement district, the city council shall adopt a resolution of formation that shall
contain all of the following:
(1) A brief'desctiption.of the proposed activities and improvements, the amount of the
proposed assessment; a statement as to whether the assessment will be levied on property,
businesses, or both witlun the district„ a statement About whether bonds will be issued, and a
description of the exterior boundaries of the proposed district. The descriptions and statements do
not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature
and extent of the improvements and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention.
(3) The time and place where the public hearing.was held conccrding, the establishment of the
district.
(4) A determination regarding any protests received. The city= shall not establish the district or
levy assessments if a majority-protest was received.
(5) A statement that the properties, businesses, or properties and. businesses in the district
established by the resolution shall be subject to any amendments to this part.
(6) A statement that the improvements and activities to be provided in the, district will be
funded by the levy of the assessments. The revenue from the levy of assessments within a district
shall not be used to provide improvements or activities outside the district or for any purpose other
than the purposes specified in the resolution of intention, as modified by the city council at the
hearing ,concerning establishment of the district.
(7) A finding that the property or businesses within the area.of the property and business
.improvement district will be benefited by the.improvetnents and activities funded by the
assessments proposed to be levied.
(b) The adoption of the resolution of Formation and, if required, recordation of the notice and
map pursuant to Section 36627 shall constitute,the levy ofan assessment in each of the fiscal years
referred to in the management district plan.
Appendix 1 — Law I Newport Beach Tourism Business Improvement District
CM
§36626. Resolutionestablishingdistricc
If the city council, following the public hearing, desires to establish the proposed property and
business, improvement district, and the city council has not made changes pursuant to Section
36024, or has made changes that do-not substantially change the proposed assessment, the city
council shall adopt a resolution establishing the district. The resolution shall contain all of the
information specified in paragraphs (1) to (8), inclusive, of subdivision (b) of Section 36625, but
need not contain infonnation-about the preliminary resolution if none has been adopted.
5,36626:5. [Section repealed 1999.1
536626.6. [Section repealed 1999]
§ 36626.7. [Section repealed 1999]
5 36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to
Section 36625 or Section 36626, the clerk of the city shall record a notice and an assessment diagram
pursuant to Section 3114. No other provision. of Division 4.5 (commencing with Section 3100)
applies to an assessment district created pursuant to this part.,
6 36628. Establishment of separate benefit zones . within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district based upon .
the degree of benefit derived from the improvements or activities to be provided within the benefit
zone and may impose different assessment within each benefit zone. If the assessmentis to be
levied on businesses, the city council may also define categories of businesses based upon the degree
of benefit that each will derive from the improvements or activities to be provided within the district
and may impose a di'fferentassessment or rate of assessment on each category of business, or on
each category of business within each zone.
5 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or ,a combination of
the two, pursuant to this part. The city council shall structure the assessments in whatever manner it
deremiines corresponds with the distribution of benefits From, the proposed improvements and
activities.
§ 36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment modification, or disestablishment•ofa.
property and business improvement district apply to the establishment, modification,' or
disestablishment of benefit zones or categories of business-The city council shall, to establish,
modify, or disestablish a benefit-zone or category of business, follow the procedure to establish,
modify, or disestablish a property and business improvement- distnct.
6 36630. Expiration of district, Creation of new district
Appendix I Law I Newport Beach Tourism Business Improvement District
31
If 'a property and business improvement district expires due- to the time limit set pursuant to
subdivision (h) of Section 36622,a new management district plan may be created and a new district
established pursuant to this part.
§ 36631: Time and manner,of.cohection of ass essments;•Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in
the manner set forth by the city council in the resolution levying the assessment. Assessments levied
on real property may be collected at the same time and in the same manner as for the ad valorem
property tax, and may provide for the same lien priority and penalties for delinquent payment. All
delinquent payments for assessments levied pursuant to this part shall be charged interest and
penalties.
5 36632. Assessments to be based on estimated benefit; Classification of real property and
businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of
the estimated benefit to the real property within the property and business improvement district.
The city council may classify properties for purposes of determining the benefit to property of the
improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the
estimated benefit to the businesses within the property and business improvement district. The city
council may classify businesses for purposes of determining the benefit to the businesses of the
improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are
conclusively presumed not to benefit from the improvements and service funded thtough these
assessments, and shall not be subject to any assessment pursuant to this part.
§ 36633, Time for contesting validity of assessment
The-validity of an assessment levied under this parr shall not be contested in any action or
proceeding unless the action or proceeding is commenced within 30 days after the resolution levying
the assessmentis adopted pursuant to Section 36626. Any appeal from a. final judgmentin an action
or proceeding shall be perfected within 30 days after the entry of judgment..
g 36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city
services that would continue.after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners' association may, at any time, request that the city council modify the management
district plan. Any modification of the management district plan shall be made pursuant to this,
chapter.
§ 36636. Modification of plan by resolution after public hearing; Adoption of resolution of
intention; Modification of improvements and activities by adoption of resolution after public
hearing
Appendix 1 —Law I Newport Beach Tourism Business Improvement District
32
(a) Upon the written request of the owners' association, the city council may modify the
management district plan after conducting one public hearing on the proposed modifications. The
city council may modify the improvements andactivities to be funded with the revenue derived
from the levy of the assessments by adoptinga resolution determining to make the modifications
after holding .a public hearing on the proposed modifications. 'If the modification includes the levy
of a new or inereased assessment, the city council shall comply with Secdon.'36623. Notice of all
other public meetings and public hearings, pursuant to this section shall comply with both of the
following:
(1) The resolution. of intention shall' be published.in a newspaper of general circulation in the
city once at least seven days before die public meeting.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, ataleast 10
days before the public meeting, to each business owner or property owner affected by the proposed
modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification
prior to she public hearing required by this section. Thep Liblic hearing shall be held not more than
90 days after die adoption of the resolution of intention.
§ 36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps
recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the.
provisions of Section 36627.
S 36640, Bonds authorized; Procedure; Restriction on reduction or termination of
,assessments
(a) The city council may, by resolutio e n, detemiin and declare that bonds shall be issued to
Enance the estimated cost of some or all of the proposed improvements described in the resolution
of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to
that section provides for the issuance of bonds, under die Improvement Bond Act of 1915
(Division 90 (commencing with Section 8500)) of in conjunction with Marks -Roos Local Bond
Pooling Act of 1985 (Article 4 (commencing with Section 6584 ofCbapter5 ofDioision 7 of Title Y of the
Govury mMt Code). Either, acr, as dic case may be, shall, govern the proceedings relating to the..issuance
of bonds; although proceedings under the Bond Act of 1915 may be modified by the city council as
necessary toaccommodate.assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision. (a) shall generally describe. the proposed
improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth
the estimated cost of those improvements., specify the number of annual installments and the fiscal .
years during which they are to be collected. The amount of debt service to retire the bonds shall not
exceed die amount of revenue estimated to be raised from assessments over 30 years_
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and
interest on any bond issued pursuant to this section shall nor be reduced or. terminated if doing so
would interfere with the timely retirement of the debt..
36641. [Section repealed 2001.]
36642. [Section repealed 2001.]
§36643. [Section repealed 2001.]
l .Appendix 1 — Law Newport Beach Tourism Business Improvement District
33
36650. Report by owners' association; Approval or modification by city council
(a) The owners' association shall 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 die report. The owners' association's first report shall be due'after the first
year of operation of the district. The report may propose changes,'induding, but not liniTted to, the
boundaries of the property and business improvement district or any benefit zones within the
district, the basis and method of levying the assessments, and any changes in the classification of
property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business
improvement district by name, specify the fiscal year to which the report applies, and, with respect
to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district
or in any benefit zones or classification of property or businesses within the district.
(2) The improvements and activities to be provided for that fiscal year.
(3) An estimate of the cost of providing the improvements and the activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real
property or business owner, as appropriate, to estimate the amount of the assessment to be levied
against his or her property or business for that fiscal year.
(5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The amount ofany contributions to be made from sources other than assessments levied
pursuant to this part.
(c) The city council may approve the report as filed by the owners' associa don or may,modih
any particular contained in the report and approve it as modified. Any modification shall be made
pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that
would impair an authorized or executed contract to. be paid from the revenues derived from the levy
of assessments, including any commitment to pay principal and interest on any bonds issued on
behalf of the district.
536651. Designation of owners` association to provide improvements and activities
The management district plan may; bur is not required to, state that an owners' association will
provide the improvements or activities described in the management district plan. If the
management district plan designates an owners' association, the city shall contract with the
designated nonprofit corporation toprovide services.
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, may be renewed by following the
procedures for establishment as provided in this chapter.
(b) Upon renewal, any remaining rcvenues.derived from the levy of assessments, orany
revenues derived from the sale of assets acquired with the revenues, shall be transferred to the.
renewed district. If the renewed district includes additional parcels or businesses not included in the
prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the
prior district If the renewed district-does not include parcels or businesses included in the prior
Appendix 'I — Law I Newport Beach Tourism Business Improvement District
34
district, the remaining revenues attributable to these parcels shall be refunded to the owners of these
parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is
authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that
the boundaries, assessments; improvements, or activities of renewed district be the same as the
original or prior district.
36670. Circumstances permitting disestablishment. of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where therc'is no
indebtedness; outstanding and unpaid, incurred to accomplish any of the purposes of the district,
may be disestablished by resolution by the city council in either of the following circumstances:.
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a
violation of law in connection with the management of the district, it shall notice a hearing on
disestablishment.
(2) During the operation of the district, fhere shall be a 30 -day period each year in which
assessees may request disestabli shment of the district. The first such period shall begin one year after
the date of establishment of the district and shall continue for 30 days. The nest such 30 -day period
shall begin two years after the date of the establishment of the district. Each successive year of
operation of the district shall have such a 30 -day period. Upon the written petition of the owners or
authorized representatives of real property or the: owners or authorized representatives of businesses
in the area who pay 50 percent or more of the assessments levied, the city council shall pass a
resolution of intention to disestablish the district: The city council shall notice hearing on
disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the
public hearing required by this section. The resolution shall state the reason for the disestablishment,
shall state the time and place of the public hearing, and shall contain a proposal to dispose of any
assets acquired with the revenues of the assessments levied within the property and. business
improvement district The notice of the hearing on disestablishment required by this section shall be
given by mail to the property owner of each parcel or to the owner of each business subject to
assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30
days after mailing the notice to the property or business owners. The public hearing shall be held not
morerhan 60 days after the adoption of the resolution of intention.
§ 36671. Refund of remaining revenues upon disestablisb.ment or expiration without
renewal of district; Calculation of refund; Use of outstanding revenue collected after
disestablishment of district
(a) Upon the disestablishment or expiration without renewal of a district, any remaining
revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from
the- salcrof assets acquired with the revenues, or from bond reserve or construction funds, shall be,
refunded to the owners of the property or businesses then located and operating within the district
in which assessments were levied by applying the same method and basis that was used to calculate
the.assessments levied' in the .:fiscal year in which the district is disestablished or expires. All
outstanding assessment revenue collected after disestablishment shall be spent on improvements
and activities specified in the management district plan.
Appendix 1 —Law I Newport Beach Tourism Business Improvement District
35
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method
and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be
used to calculate the amount of any refund.
Appendix 1— Law I Newport Beach Tourism Business Improvement District
36
APPENDIX 2 - ASSESSED BUSINESSES
Fairmont Newport Beach
4500 MacArthur Boulevard
Newport Beach
CA
92660
Hyatt Regency Newport Beach
1107 Jamboree Road
Newport Beach
CA
92660
Newport Beach Marriott
500 Bayview Circle
Newport Beach
CA
92660
Bayview
Newport Beach Marriott Hotel
900 Newport Center Drive
Newport Beach
CA
92660
& Spa
Radissou Newport Beach
4545 MacArthur Boulevard
Newport Beach
CA
92660
Balboa Bay Club and Resort
1221 West Coast highway
Newport Beach
CA
92663
The Island Newport Beach
690 Newport Center Drive
Newport Beach
CA
92660
Newport Dunes Waterfront
1131 Back Bay Drive
Newport Beach
CA
92660
Resort & Marina
Appendix 2 — Assessed Businesses I Newport Beach Tourism Business Improvement
District
37
Recieved After Agenda Printed
Agenda Item #5
December 10, 2013
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Business Owner
Signature
!11
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
M
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Business Owner
"�'j-TKf-.z Aoroi,1 r-iff
Owner Repres ntative /Owner Name (printed) Title
//1jY1i3
Owner /Representative Signature
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
IIN
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Business Owner
Owner Representative/ wner Name (printed) Title
Owner /Representative Signature D to
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
40
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Business Owner
UQ4�SSn�c��(�c�CJn lVc��v t1�tA,�N�S (1-(-4 �
c'
Owner Representative /Owner Name (printed)
Owner /Representative Signature
Title
Date
01
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
am
41
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Owner Representative /Owner Name (printed)
presentative Signature
Business Owner
gut 4A�
Title
(AI' )-D13
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
42
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Business Owner
1/�..AI I�C�Lf 1v� l�F�T� � LIso6 a16y Cunr� (/c(Iiu✓J3r
C
Owner Representative /Owner Name (printed)
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
43
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Business Owner
\ 1 � V6 1 Y�.�s'S) \1.J`.Sel f' 1
Owner
Owne
er Name (printed) Title
fl, iier-lS
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
44
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Business Owner
Owner Representative /Owner Name (printed) Title
Owner /Representative Signature
"0j MQer
/(- I'� -r`�-
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
45
PETITION TO THE CITY OF NEWPORT BEACH
TO RENEW THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
We petition you to initiate special assessment proceedings to renew the Newport Beach Tourism
Business Improvement District in accordance with the Property and Business Improvement District Law
of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of implementing programs
described in the Management District Plan summary attached hereto as Exhibit A.
Lodging Establishment
Business Owner
Owner Representative /Owner Name (printed) Title
Owner /Representative Signature
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Gary Sherwin
Newport Beach & Company
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
46
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
Location: The City of Newport Beach. The NBTBID includes eight (8) lodging businesses located
within the boundaries of the City of Newport Beach.
The NBTBID shall include the Fairmont Newport Beach, the Hyatt Regency Newport
Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa,
the Radisson Newport Beach, the Balboa Bay Club and Resort (a.k.a., Balboa Bay
Resort), the Newport Dunes Waterfront Resort and Marina, the Island Hotel Newport
Beach, and any other hotel and resort business that may join the NBTBID in the future.
Additional hotels and resorts that wish to pay the assessment and receive NBTBID
services in the future may do so upon the approval of a majority of the then existing
membership of the NBTBID, and through the execution of an agreement with the City
approved by the City Council consistent with Property and Business Improvement
District Law of 1994, Streets and Highways Code Sections 36600 et seq., as the same
may be amended from time to time.
Services: The NBTBID is designed to provide specific benefits directly to assessed businesses by
increasing room night sales. The improvements and activities consist of sales marketing
and direct sales programs to increase overnight tourism and market assessed businesses
as tourist, meeting and event destinations, thereby increasing room night sales. These
same improvements and activities are proposed for each year of the NBTBID's five or
ten (5 or 10) year term.
Budget: The total NBTBID annual budget for the initial year, and subsequent years, is anticipated
to be approximately one point three three or two million dollars ($1,333,333 or
$2,000,000). This budget is expected to fluctuate as room sales do, but is not expected
to significantly change over the NBTBID's term.
Cost: The annual assessment rate is two or three percent (2.0 or 3.0 %) of gross short -term
(i.e., stays of thirty (30) calendar days or less) room rental revenue. Because programs
will not be designed to attract certain stays, certain types of stays will not be assessed,
as described in Section V(C) of the Management District Plan.
Duration: The proposed NBTBID will have a five or ten (5 or 10) year term. The NBTBID
assessment will be implemented beginning February 1, 2014, and will be in effect for
five or ten (5 or 10) years through January 31, 2019 or January 31, 2024. After five or
ten years, the petition and City Council hearing process must be repeated for the
NBTBID to be renewed. Also, once per year beginning on the anniversary of the
formation of the NBTBID, there is a 30 -day period in which assessed businesses paying
more than fifty percent (50 %) of the assessments may protest and initiate a City Council
hearing to terminate the NBTBID.
47
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
Management: The TBID committee of Visit Newport Beach, Inc. will serve as the NBTBID's Owners'
Association. The Owners' Association is charged with managing funds and
implementing programs in accordance with this plan, and must provide annual reports
to the City Council.
Boundaries
1
I
i
at
Newport Beach
City Limits
133
Fadisson Newport Beach
Fairmont Newport Beach
73
Newport Beach_Marriott Bayview
48
CITY OF NEWPORT BEACH
OFFICE OF THE CITY CLERK
Leilani I. Brown, MMC
December 13, 2013
Dear Newport Beach Tourism Business Improvement District Member
On Tuesday, December 10, 2013 the Newport Beach City Council adopted Resolution No.
2013 -89, A Resolution Declaring its Intention to Renew the Newport Beach Tourism
Improvement District (NBTBID). A copy of the Notice of Public Meeting and Public Hearing and
Resolution No. 2013 -89 are enclosed.
There are two more steps in the NBTBID renewal process. A public meeting on the renewal is
set for January 14, 2014 at 7 p.m. at the Newport Beach Council Chambers, 100 Civic Center
Drive, Newport Beach, CA 92660. That will be followed by a public hearing on January 28, 2014
at 7 p.m. at the aforementioned location.
You are welcome to attend the meeting and /or the hearing to provide your comments on the
NBTBID's renewal. Written comments may also be submitted in advance of the meeting and /or
hearing to the City Clerk's Office, 100 Civic Center Drive, Bay E, Newport Beach, CA, 92660 or
citvclerka..newoortbeachca.00v. A copy of the Management District Plan for the renewed
NBTBID is on file and may be reviewed at the City Clerk's Office as well.
If ultimately approved by the Newport Beach City Council on January 28, the NBTBID will be
renewed and its term will expire on January 31, 2024. In addition, the new assessment will be
three percent (3 %) of gross short -term room rental revenue (it is currently 2 %) and the Island
Hotel Newport Beach will be added as a NBTBID member.
Please note that the NBTBID renewal is a separate, but related process, to the NBTBID
modification. Current NBTBID members will receive a separate letter and information from me,
also dated December 13, that pertains specifically to the modification.
Sincerely,
k--Fx-
Leilani I. Brown, MMC
City Clerk
Enclosures: Resolution No. 2013 -89
Notice of Public Meeting and Public Hearing
3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92658 -8915
Telephone: (949) 644 -3005 • Fax: (949) 644 -3039 • www.newportbeachca.gov
RESOLUTION NO. 2013 -89
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION TO
RENEW THE NEWPORT BEACH TOURISM BUSINESS
IMPROVEMENT DISTRICT AND FIXING THE TIME AND
PLACE OF A PUBLIC MEETING AND A PUBLIC
HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, the Property and Business Improvement Law of 1994, . Streets and
Highways Code Sections 36600 et seq., authorizes cities and counties to establish property
and business improvement districts for the purposes of promoting tourism; and
WHEREAS, the City Council created the Newport Beach Tourism Business
Improvement District (NBTBID) by Resolution No. 2009 -21 on April 28, 2009; and
WHEREAS, Visit Newport Beach (VNB) representatives, lodging business owners,
and representatives from the City of Newport Beach (City) have met to consider the renewal
of the NBTBID; and
WHEREAS, Visit Newport Beach has drafted a Management District Plan (MQP)
which sets forth the proposed boundary of the NBTBID, a service plan and budget, and a
proposed means of governance; and
WHEREAS, a majority of the lodging business owners subject to assessment under
the NBTBID have petitioned the City Council to renew the NBTBID.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals set forth herein are true and correct.
Section 2: The City Council finds that the lodging businesses that will pay more
than fifty percent (50 %) of the assessment proposed in the MDP have signed and submitted
petitions in support of the renewal of the NBTBID. The City Council accepts the petitions and
adopts this resolution of intention to renew the NBTBID and to levy an assessment on certain
lodging businesses within the NBTBID boundaries in accordance with the Property and
Business Improvement District Law of 1994.
Section 3: The City Council finds that the MDP satisfies all requirements of
California Streets and Highways Code Section 36622.
Section 4: The City Council declares its intention to renew the NBTBID and to levy
and collect assessments on lodging businesses within the NBTBID boundaries pursuant to
the Property and Business Improvement District Law of 1994.
Section 5: The boundaries of the NBTBID shall be the boundaries of the City of
Newport Beach. Please see the attached map, incorporated herein as Exhibit A. The
renewed NBTBID includes eight (8) lodging businesses located within the boundaries of the
City of Newport Beach, and other hotels and resorts that may join the NBTBID in the future.
The NBTBID shall include the Fairmont Newport Beach, the Hyatt Regency Newport Beach,
the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson
Newport Beach, the Balboa Bay Club and Resort (a.k.a., Balboa Bay Resort), the Newport
Dunes Waterfront Resort and Marina, the Island Hotel Newport Beach, and any other hotel
and resort business that may join NBTBID in the future.
Additional hotels and resorts that wish to pay the assessment and receive NBTBID
services in the future may do so upon the approval of a majority of the then existing
membership of the NBTBID, and through the execution of an agreement with the City,
approved by the City Council, after a noticed public hearing consistent with California Streets
and Highways Code Sections 36623 and 36637, as the same may be amended from time -to-
time.
Section 6: The name of the renewed district shall remain Newport Beach Tourism
Business Improvement District.
Section 7: The annual assessment rate is three percent (3.0 %) of gross short-term
(stays less than thirty (30) calendar days) room rental revenue. Because programs will not
be designed to attract certain stays, certain types of stays will not be assessed, as described
in the MDP.
Section 8: The assessments levied for the NBTBID shall be applied to provide
specific benefits directly to assessed businesses by increasing room night sales. Marketing,
sales promotions, advertising, and communications will increase overnight tourism and market
assessed businesses as tourist, meeting and event destinations, thereby increasing room night
sales. Funds remaining at the end of any year may be used in subsequent years in which
NBTBID assessments are levied as long as they are used consistent with the requirements of
this resolution and the MDP.
Section 9: The NBTBID will have a ten (10) year term unless renewed or
terminated pursuant to the California Streets and Highways Code.
Section 10: Bonds will not be issued.
Section 11: The time and place for the public meeting to hear testimony on renewing
the NBTBID and levying assessments is set for January 14, 2014, at 7:00 p.m., or as soon
thereafter as the matter may be heard, at the Council Chambers located at 100 Civic Center
Drive, Newport Beach, CA 92660.
Section 12: The time and place for the public hearing to renew the NBTBID and levy
the assessment is set for January 28, 2014, at 7:00 p.m., or as soon thereafter as the matter
may be heard, at the Council Chambers located at 100 Civic Center Drive, Newport Beach,
CA 92660. The City Clerk is directed to provide written notice to the lodging businesses
subject to assessment of the date and time of the hearing and to provide that notice as
required by California Streets and Highways Code Section 36623.
Section 13: At the public hearing the testimony of all interested persons for or
against the establishment of the NBTBID may be received. If, at the conclusion of the public
hearing, there are of record written protests by the owners of the lodging businesses within
the proposed NBTBID that will pay fifty percent (50 %) or more of the estimated total
assessment of the entire NBTBID, no further proceedings to renew the NBTBID shall occur
for a period of one (1) year.
Section 14: The complete MDP is on file with the City Clerk and may be reviewed
upon request.
Section 15: The City Council finds the adoption of this resolution of intention is not
subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section
15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because
it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 16: If any section, subsection, sentence, clause or phrase of this resolution
is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this resolution. The City Council
hereby declares that it would have passed this resolution, and each section, subsection,
clause or phrase hereof, irrespective of the fact that any one or more sections, subsections,
sentences, clauses and phrases be declared invalid or unconstitutional.
Section 17: This resolution shall take effect immediately upon its adoption by the
City Council and the City Clerk shall certify the vote adopting this resolution.
ADOPTED this 10th day of December, 2013
ATTEST:
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Leilani I. Brown,
City Clerk
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Mayor
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STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
1, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2013 -89 was duly and regularly Introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 10'h day of December, 2013, and that the
same was so passed and adopted by the following vote, to wit:
Ayes: Gardner, Petros, Hill, Selich, Henn, Mayor Curry
Nays: Daigle
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 11t" day of December, 2013.
,&-I
City Clerk
Newport Beach, California
(Seal)
NOTICE OF PUBLIC MEETING AND PUBLIC HEARING CONCERNING RENEWAL OF THE
NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT AND LEVY OF AN
ASSESSMENT ON CERTAIN LODGING BUSINESSES WITHIN THE DISTRICT
NOTICE IS HEREBY GIVEN that on December 10, 2013, the City Council of the City of Newport
Beach ( "City ") adopted a Resolution of Intention to renew the Newport Beach Tourism Business
Improvement District ( "NBTBID ") and to levy an assessment on certain lodging businesses within
the NBTBID as set forth in the enclosed Resolution of Intention.
NOTICE IS HEREBY FURTHER GIVEN that at 7:00 p.m., or as soon thereafter as this matter
may be heard, on January 14, 2014, at the City of Newport Beach Council Chambers, 100 Civic
Center Drive, Newport Beach, CA 92660, a public meeting shall be held pursuant to Government
Code Section 54954.6 to allow public testimony regarding the renewal of the NBTBID and the
levy of assessments therein as set forth in the enclosed Resolution of Intention.
NOTICE IS HEREBY FURTHER GIVEN that at 7:00 p.m., or as soon thereafter as this matter
may be heard, on January 28, 2014, at the City of Newport Beach Council Chambers, 100 Civic
Center Drive, Newport Beach, CA 92660, a public hearing shall be held pursuant to Government
Code Section 54954.6 at which time the City Council proposes to renew the NBTBID and to levy
the proposed assessment as set forth in the Resolution of Intention and Management District
Plan.
Boundaries: The proposed NBTBID includes eight (8) lodging businesses located within the
boundaries of the City of Newport Beach. The NBTBID shall include the Fairmont
Newport Beach, the Hyatt Regency Newport Beach, the Newport Beach Marriott
Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson Newport Beach,
the Balboa Bay Club and Resort (a.k.a., Balboa Bay Resort), the Newport Dunes
Waterfront Resort and Marina, the Island Hotel Newport Beach, and any other hotel
and resort business that may join the NBTBID in the future.
Additional hotels and resorts that wish to pay the assessment and receive NBTBID
services in the future may do so upon the approval of a majority of the then existing
membership of the NBTBID, and through the execution of an agreement with the
City approved by the City Council consistent with the Property and Business
Improvement District Law of 1994, Streets and Highways Code Sections 36600 et
seq., as the same may be amended from time to time.
Assessment:The annual assessment rate is three percent (3.0 %) of gross short-term (stays less
than thirty (30) calendar days) room rental revenue. Because programs will not be
designed to attract certain stays, those certain types of stays will not be assessed,
as described in the Management District Plan.
Budget: The total NBTBID annual budget for the initial year of its ten (10) year operation is
anticipated to be approximately two and one -half million dollars ($2,500,000). This
budget is expected to fluctuate as room sales do, but is not expected to
significantly change over the NBTBID's ten (10) year term.
Page i of 2
Purpose: The NBTBID is designed to provide specific benefits directly to assessed lodging
businesses by increasing room night sales. Marketing, sales promotions,
advertising, and communications will increase overnight tourism and market the
assessed lodging businesses as tourist, meeting and event destinations, thereby
increasing room night sales.
Collection: The NBTBID assessment will be implemented beginning February 1, 2014 and will
continue for ten (10) years through January 31, 2024. The City, or its designee, will
be responsible for collecting the assessment on a monthly basis (including any
delinquencies, penalties and interest) from each lodging business located in the
boundaries of the NBTBID.
Protest: Any owner of a lodging business within the proposed NBTBID that will be subject to
the assessment may protest the renewal of the NBTBID. If written protests are
received from the owners of lodging businesses in the proposed NBTBID who
represent fifty percent (50 %) or more of the estimated annual assessments to be
levied, the NBTBID shall not be renewed and the assessment shall not be
imposed.
You may mail a written protest to:
Office of the City Clerk
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
You may also appear at the public hearing and submit a written protest at that time.
Information: Should you desire additional information about this proposed NBTBID or
assessment, please contact:
Mr. Gary Sherwin
Visit Newport Beach
1600 Newport Center Drive, Suite 120
Newport Beach, CA 92660
(949)719 -6100
Dated: 1 ?-113 //0
�-� - FX
Leilani I. Brown
City Clerk
Page 2 of 2
Debra L. Snavely
General Manager
Newport Beach Marriott Hotel & Spa
900 Newport Center Drive
Newport Beach, CA 92660
Robert Leck
General Manager
Radisson Newport Beach
4545 MacArthur Boulevard
Newport Beach, CA 92660
Karl Kruger
General Manager
Fairmont Newport Beach
4500 MacArthur Boulevard
Newport Beach, CA 92660
Andy Theodorou
General Manager
Newport Dunes Waterfront Resort &
Marina
1131 Back Bay Drive
Newport Beach, CA 92660
Kandee Anderson
General Manager
Newport Beach Marriott Bayview
500 Bayview Circle
Newport Beach, CA 92660
Donald Stamets
General Manager
Island Hotel Newport Beach
690 Newport Center Drive
Newport Beach, CA 92660
Daniel Kuperschmid
General Manager
Hyatt Regency Newport Beach
1107 Jamboree Road
Newport Beach, CA 92660
Dieter Hissen
General Manager
Balboa Bay Resort
1221 West Coast Highway
Newport Beach, CA 92663