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Home My WebLink About16 - Request to Form a Tourism BIDCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 March 10, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Leigh M. De Santis, Economic Development Administrator, 949 - 644 -3207, Idesantis @city.newport- beach.ca.us SUBJECT: Request to Form a Tourism BID under the 1994 PBID Law ISSUE: Will the City Council support the formation of a Tourism Business Improvement District? RECOMMENDATION: Agree to consider the formation of a Tourism Business Improvement District (TBID) by taking the following actions: 1. Accept the petitions. 2. , Review and accept the Tourism BID Draft Management District Plan. 3. Adopt the Resolution of Intention to Establish the TBID and set the Public Meeting and Public Hearing Dates for the City Council Meetings of April 14 and 28, 2009 respectively. 4. Establish an Administrative Fee of 0.25% to cover City administrative support services. DISCUSSION: Background: The Newport Beach Conference and Visitors Bureau working in conjunction with six of the major hotels in the City of Newport Beach, is proposing the creation of a TBID. Request to Form a TBID March 10, 2009 Page 2 The TBID would be comprised of the following hotels, all located within the boundaries of the City of Newport Beach. It would be administered / governed by an executive body consisting of the entire Conference and Visitors Bureau Board (CVB Board) advised by a sub - committee of the CVB Board members from the member hotels. 1. The Fairmont Newport Beach, 2. The Hyatt Regency Newport Beach, 3. The Newport Beach Marriott Bayview, 4. The Newport Beach Marriott Hotel & Spa, 5. The Radisson Newport Beach, and 6. The Balboa Bay Club and Resort. The City of Newport Beach currently has four Business Improvement Districts. Three are geographical and one is citywide for the restaurant / food and beverage industry. The TBID would most closely resemble the Restaurant Association BID. The four existing BIDS are all organized under the BID Law of 1989. The 1989 Law requires annual renewal of each BID. The TBID would like to operate under the PBID Law of 1994. This 1994 Law differs in several significant ways: 1. Owners paying more than 50% of the proposed assessment must sign petitions supporting formation before the City Council may take action on a Resolution of Intention. 2. The BID petitioners must submit for approval a Management District Plan that addresses twelve items enumerated in Streets and Highways Code Section 36622. 3. The initial BID term may be set at one to five years. Renewals may be for up to ten years at a time. 4. The 1994 Law allows a BID to sell bonds if authorized in the formation documents. Attached to this report are the signed petitions, the Management District Plan and a Resolution of Intention setting the Public Meeting for April 14, 2009 and the Public Hearing for April 28, 2009. The TBID is proposing an initial approval period of five (5) years. Request to Form a TBID March 10, 2009 Page 3 Description of the Proposed TBID At this time only the six named hotels are proposed to be included in the TBID. The Management Plan does allow other hotels to. petition for admittance at a later date with approval of the TBID Board and City. The term of the TBID is proposed to be five years. The purpose of the TBID is to: • Increase tourism, especially over -night stay in Newport Beach; • Market the Newport Beach Area, for tourism and as an event venue; • Promote tourism activities; • Generate sales lead for members; and • Other related activities as deemed to advance the TBID's purpose. To fund the TBID activities the six hotels are proposing to impose on themselves, a levy consisting of an annual assessment set at a rate of 2.0% of gross short-term room rental revenue. Short-term room rentals are stays of fewer than 30 days. Any stay of more than 30 consecutive days would not be assessed. The proponents also propose to not assess stays by airline personnel and /or government employees on government business. Stays at time shares would not be assessed. It is the proponents' plan to pass the assessment along to the public as a surcharge on their room nights. This means a hotel bill would show at least four charges (although staff understands that some hotel bills combine the TOT and Visitor Service Fee): Nightly room rental $$$ Transient Occupancy Tax 9.0% Visitor Service Fee 1.0% Tourism BID Assessment 2.0% Total 12.0% If adopted following the April public hearing, the fee would commence May 1, 2009. The proposed budget for the first year of the TBID's operation is approximately $1.7 million dollars. The TBID authors have stated that the TBID is not seeking the authority to sell bonds, and their Management District Plan specifically says this authority is not created. While the TBID would be administered by the Newport Beach Conference and Visitors Bureau Board, the City has been asked to be their financial agent collecting and remitting the money in the same manner the City has been returning a portion (18 %) of the TOT and the Visitor Service Fee. When the 1% Visitor Service Fee was initially adopted, its purpose was to cover the City's administrative costs of tracking and reimbursing a portion of the TOT. A few Request to Form a TBID March 10, 2009 Page 4 years ago the Visitor Service Fee was redirected to the CVB. With the addition of the Tourism BID fee, which will have to be accounted for separately both because of the law and because it comes from just six hotels, staff is proposing that a small fee for services be charged to the TBID. The proposed fee is 0.25% of TBID receipts. Of the estimated $1.7 million annually the TBID anticipates. receiving, the fee would be approximately $4,250 to cover staff time spent on behalf of the TBID to calculate and remit funds. Environmental Review: Under the definitions of CEQA the formation of an assessment district is not a project. Public Notice: The attached Resolution of Intention if adopted will set a Public Meeting and Public Hearing date and time for consideration of establishing the TBID and levying the assessment. Notice of the Public Hearing will be provided as required by law. Alternatives: 1. Do not agree to hold a Public Hearing on creating a Tourism Business Improvement District. 2. Adopt the Resolution but do not assess a City administrative fee. 3. Adopt the Resolution but set a City administrative fee at a different rate or amount. Prepared by: Submitted by: r. / 6U L igh M. a Santis, Economic Development Administrator Attachments: Petitions Management District Plan Resolution of Intent Sharon Z. Wood, Assistant City Ma er PETITION TO THE CITY OF NEWPORT BEACH TO CREATE A TOURISM BUSINESS IMPROVEMENT DISTRICT We petition you to initiate special assessment proceedings to create a Tourism Business Improvement District (TBID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of undertaking and implementing the TBID as described in the attached summary of the Management District Plan attached hereto as Exhibit A. Lodging Establishment Business Owner l l ner ere ntahve Signature Date Exhibit A Summary of the Management District Plan The Management District Plan provides for the provision of sales promotions and marketing programs for the Newport Beach area. The Newport Beach Tourism Business Improvement District (NBTBID) shall be established for 5 years and will raise approximately $2,300,000 per year in assessments. The NBTBID shall assess six (6) hotels within the city limits of Newport Beach 2.0% of gross short term (stays less than 30 days) room rental revenue. 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, and the Balboa Bay Club and Resort. Lodging business stays of more than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, stays at time shares shall not be assessed. A detailed map is attached. Additional lodging facilities that wish to pay the assessment and receive NBTBID services in the future may do so with the approval of the NBCVB Board and through the execution of an agreement with the City. Services the NBTBID will provide include sales promotion and marketing programs designed to market Newport Beach as a tourist, meeting and event destination. The proposed District NBTBID. will have a five -year life. The NBTBID assessment will be implemented beginning May 1, 2009 and will be in effect for five years. After five years, the petition and City Council hearing process must be repeated for the NBTBID to be renewed. Also, once per year there is a 30 day period in which owners paying more than 50% of the assessment may protest and terminate the district. A complete Management District Plan can be obtained by contacting the Newport Beach Conference & Visitors Bureau at the address or phone number below. A complete Management District Plan shall be furnished upon request. If you have any questions please contact us at: Newport Beach Conference & Visitors Bureau 1200 Newport Center Drive, Suite 120 Newport Beach, California 92660 949 - 719 -6100 gary cbvisitnewportbeach.com f" I ..... . . ... .. wy W pi Balboa 8 /vd,W ' , 'o c I d E I PETITION TO THE CITY OF NEWPORT BEACH TO CREATE A TOURISM BUSINESS IMPROVEMENT DISTRICT We petition you to initiate special assessment proceedings to create a Tourism Business Improvement District (TBID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of undertaking and implementing the TBID as described in the attached summary of the Management District Plan attached hereto as Exhibit A. y Lodging Establishment Business Owner �7 D /eve /�l6oGZ Ag2c CSC,, In %Y1f l3f[/U � 1 ' /czt.F/urr _�- r t" IG i "N Name (printed) Owner/Representative Signature Dam — ^— 6i Exhibit A Summary of the Management District Plan The Management District Plan provides for the provision of sales promotions and marketing programs for the Newport Beach area. The Newport Beach Tourism Business Improvement District ( NBTBID) shall be established for 5 years and will raise approximately $2,300,000 per yew in assessments. The N13TBID shall assess six (6) hotels within the city limits of Newport Beach 2.0% of gross short term (stays less than 30 days) room rental revenue. 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, and the Balboa Bay Club and Resort. Lodging business stays of more than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, stays at time shares shall not be assessed. A detailed map is attached. Additional lodging facilities that wish to pay the assessment and receive NBTBID services in the future may do so with the approval of the NBCVB Board and through the execution of an agreement with the City. Services the NBTBID will provide include sales promotion and marketing programs designed to market Newport Beach as a tourist, meeting and event destination. The proposed District NBTBID will have a five -year life. The NBTBID assessment will be implemented beginning May 1, 2009 and will be in effect for five years. After five years, the petition and City Council hearing process must be repeated for the NBTBID to be renewed. Also, once per year there is a 30 day period in which owners paying more than 50% of the assessment may protest and terminate the district. A complete Management District Plan can be obtained by contacting the Newport Beach Conference & Visitors Bureau at the address or phone number below. A complete Management District Plan shall be furnished upon request. If you have any questions please contact us at: Newport Beach Conference & Visitors Bureau 1200 Newport Center Drive, Suite 120 Newport Beach, California 92660 949 -719 -6100 L-1 .111 (ai —Ni sitnewuortbeach.com E pp Ada y f i P/ PETITION TO THE CITY OF NEWPORT BEACH TO CREATE A TOURISM BUSINESS IMPROVEMENT DISTRICT We petition you to initiate special assessment proceedings to create a Tourism Business Improvement District (TBID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., for the purpose . of undertaking and implementing the TBID as described in the attached summary of the Management District Plan attached hereto as Exhibit A. Lodging Establishment 7gd1Ss6h �afa- 324, Name (printed) -�,_ll.a Signature Date Business Owner { r! Exhibit A Summary of the Management District Plan The Management District Plan provides for the provision of sales promotions and marketing programs for the Newport Beach area. The Newport Beach Tourism Business Improvement District (NBTBID) shall be established for 5 years and will raise approximately $2,300,000 per year in assessments. The NBTBID shall assess six (6) hotels within the city limits of Newport Beach 2.0% of gross short term (stays less than 30 days) room rental revenue. 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, and the Balboa Bay Club and Resort. Lodging business stays of more than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, stays at time, shares shall not be assessed. A detailed map is attached. Additional lodging facilities that wish to pay the assessment and receive NBTBID services in the future may do so with the approval of the NBCVB Board and through the execution of an agreement with the City. Services the NBTBID will provide include sales promotion and marketing programs designed to market Newport Beach as a tourist, meeting and event destination. The proposed District NBTBID will have a five -year life. The NBTBID assessment will be implemented beginning May 1, 2009 and will be in effect for five years. After five years, the petition and City Council hearing process must be repeated for the NBTBID to be renewed. Also, once per year there is a 30 day period in which owners paying more than 50% of the assessment may protest and terminate the district. A complete Management District Plan can be obtained by contacting the Newport Beach Conference & Visitors Bureau at the address or phone number below. A complete Management District Plan shall be furnished upon request. If you have any questions please contact us at: Newport Beach Conference & Visitors Bureau 1200 Newport Center Drive; Suite 120 Newport Beach, California 92660 949 - 719 -6100 garyr ?visimcwyWtbeach.com NV Newport Beach Tourism BID Management District Plan Page 6 PETITION TO THE CITY OF NEWPORT BEACH TO CREATE A TOURISM BUSINESS IMPROVEMENT DISTRICT We petition you to initiate special assessment proceedings to create a Tourism Business Improvement District (TBID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of undertaking and implementing the TBID as described in the attached summary of the Management District Plan attached hereto as Exhibit A. Lodging u i Owner r /" f'�ULo- Exhibit A Summary of the Management District Plan The Management District Plan provides for the provision of sales promotions and marketing programs for the Newport Beach area. The Newport Beach Tourism Business huprovement District ( NBTBID) shall be established for 5 years and will raise approximately $2,300,000 per year in assessments. The NBTBID shall assess six (6) hotels within the city limits of Newport Beach 2.0% of gross short term (stays less than 30 days) room rental revenue. 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, and the Balboa Bay Club and Resort. Lodging business stays of more than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, stays at time shares shall not be assessed. A detailed map is attached. Additional lodging facilities that wish to pay the assessment and receive NBTBID services in the future may do so with the approval of the NBCVB Board and through the execution of an agreement with the City. Services the NBTBID will provide include sales promotion and marketing programs designed to market Newport Beach as a tourist, meeting and event destination. The proposed District NBTBID will have a five -year life. The NBTBID assessment will be implemented beginning May 1, 2009 and will be in effect for five years. After five years, the petition and City Council hearing process must be repeated for the NBTBID to be renewed. Also, once per year there is a 30 day period in which owners paying more than 50% of the assessment may protest and terminate the district. A complete Management District Plan can be obtained by contacting the Newport Beach Conference & Visitors Bureau at the address or phone number below. A complete Management District Plan shall be furnished upon request. If you have any questions please contact us at: Newport Beach Conference & Visitors Bureau 1200 Newport Center Drive, Suite 120 Newport Beach, California 92660 949 -719 -6100 ar (�:visitne",portbeach.com (y.. � `�` i PETITION TO THE CITY OF NEWPORT BEACH TO CREATE A TOURISM BUSINESS IMPROVEMENT DISTRICT We petition you to initiate special assessment proceedings to create a Tourism Business Improvement District (TBID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of undertaking and implementing the TBID as described in the attached summary of the Management District Plan attached hereto as Exhibit A. Lodging Establishment Owner Business Owner Signature Date rA Exhibit A Summary of the Management District Plan The Management District Plan provides for the provision of sales promotions and marketing programs for the Newport Beach area. The Newport Beach Tourism Business Improvement District (NBTBID) shall be established for 5 years and will raise approximately $2,300,000 per year in assessments. The NBTBID shall assess six (6) hotels within the city limits of Newport Beach 2.0% of gross short term (stays less than 30 days) room rental revenue. 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, and the Balboa Bay Club and Resort. Lodging business stays of more than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, stays at time shares shall not be assessed. A detailed map is attached. Additional lodging facilities that wish to pay the assessment and receive NBTBID services in the future may do so with the approval of the NBCVB Board and through the execution of an agreement with the City. Services the NBTBID will provide include sales promotion and marketing programs designed to market Newport Beach as a tourist, meeting and event destination. The proposed District NBTBID will have a five -year life. The NBTBID assessment will be implemented beginning May 1, 2009 and will be in effect for five years. After five years, the petition and City Council hearing process must be repeated for the NBTBID to be renewed. Also, once per year there is a 30 day period in which owners paying more than 50% of the assessment may protest and terminate the district. A complete Management District Plan can be obtained by contacting the Newport Beach Conference & Visitors Bureau at the address or phone number below. A complete Management District Plan shall be furnished upon request. If you have any questions please contact us at: Newport Beach Conference & Visitors Bureau 1200 Newport Center Drive, Suite 120 Newport Beach, California 92660 949 - 719 -6100 �J,_'dfFfG \'1S1t111;1 \� 1prlbl'.aC11,LO1S1 4 4 Newport Beach Tourism BID Management District Plan Page 6 PETITION TO THE CITY OF NEWPORT BEACH TO CREATE A TOURISM BUSINESS IMPROVEMENT DISTRICT We petition you to initiate special assessment proceedings to create a Tourism Business Improvement District (TBID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., for the purpose of undertaking and implementing the TBID as described in the attached summary of the Management District Plan attached hereto as Exhibit A. Lodging Establishment / Business Owner y,e;0.eira�.Pa�ol �sT llo��lf 1�� Lro3" Owne Representative /O er Name (printed) Owner/Representative Signature Date Exhibit A Summary of the Manazsement District Plan The Management District Plan provides for the provision of sales promotions and marketing programs for the Newport Beach area. The Newport Beach Tourism Business Improvement District (NBTBID) shall be established for 5 years and will raise approximately $2,300,000 per year in assessments. The NBTBID shall assess six (6) hotels within the city limits of Newport Beach 2.0% of gross short term (stays less than 30 days) room rental revenue. 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, and the Balboa Bay Club and Resort. Lodging business stays of more than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, stays at time shares shall not be assessed. A detailed map is attached. Additional lodging facilities that wish to pay the assessment and receive NBTBID services in the future may do so with the approval of the NBCVB Board and through the execution of an agreement with the City. Services the NBTBID will provide include sales promotion and marketing programs designed to market Newport Beach as a tourist, meeting and event destination. The proposed District NBTBID will have a five -year life. The NBTBID assessment will be implemented beginning May 1, 2009 and will be in effect for five years. After five years, the petition and City Council hearing process must be repeated for the NBTBID to be renewed. Also, once per year there is a 30 day period in which owners paying more than 50% of the assessment may protest and terminate the district. A complete Management District Plan can be obtained by contacting the Newport Beach Conference & Visitors Bureau at the address or phone number below. A complete Management District Plan shall be furnished upon request. If you have any questions please contact us at: Newport Beach Conference & Visitors Bureau 1200 Newport Center Drive, Suite 120 Newport Beach, California 92660 949 - 719 -6100 =_tr _ti' _i5itne` poribcacli_com �n ----- ----- Newport Beach Tourism BID Management District Plan Page 6 NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT I) Submitted Newport Beach Cdh f ence and P,'z&f rs Bureau March Downtown Resources k . A WAN NEWPORT BEACH TOURISM BID MANAGEMENT DISTRICT PLAN TABLE OF CONTENTS L INTRODUCTION AND OVERVIEW ..... ...................I..........; 01 A 11. WHY A TOURISM BID FOR NEWPORT BEACH?..- TL. t�,N!Ek� Ill. WHAT IS A TOURISM BUSINESS IMPROVEMENT IV. NEWPORT BEACH TOURISM BID BO V. SERVICE PLAN AND BUDGET ............. li-0 ........ . ... V1. TOURISM BID GOVERNANCE ......... ............. APPENDIX 1- THE PROPERTY AND BUSINESS IN ft'VV 1994 ....................... .................... .................... . S APPENDIX 2 - LODGING BUSINESSES a. TBID............ ................................ .......... Newport Beach Tourism BID Management District Plan 2 .. ..............................3 UCT? ...........................4 .............................4 g...................... 7 g� 5* :.............9 ........... . *1 DISTRI61 LAW OF - - -.. ... .. .. ...............10 tMIN NEWPORT BEACH .......... ................................ 21 Page I I. INTRODUCTION AND OVERVIEW Developed by the Newport Beach Conference and Visitors Bureau (NBCVB), the Newport Beach Tourism Business Improvement District ( NBTBID) is a benefit assessment district proposed to help fund marketing and sales promotion efforts for Newport Beach lodging businesses. This approach has been used successfully in other destination areas throughout the country to improve tourism and drive additional room nights. Location: The City of Newport Beach. Services: Marketing and sales promotions to increase ioi sm and%imarket Newport Beach as a tourist, meeting and event destinatiQs so services" _ [Designed to benefit M the six hotels that will be assessed witkl -the City of Newport Budget: The total NBTBID budget for year orift its f (5) year operat,04 is a base of approximately $1.7 million. -'f F Cost: Annual assessment rates " 9% of gross shoe" (stays less than 30 days) room rental revenue on six si. wrt�nira< City limits of Newport Beach. The NBTBID shall include ili4 I t ont Ne ort Beach, the Hyatt Regency Newport Beach, the Newpo t °B KIJEK 1 ott Bayview, the Newport ar Beach M t g,el & Spa, the nadisson Neorrt Beach, and the Balboa Bay Club amt 6e oi`t. b ging business stays of more than 30 consecutive days shall not bye 9s4 essed. Based on the beneTrt received, stays by airline personnel and govemmer�t employ es on govemment Business shall not be assessed. Similarly, staffs at time sL- iLtcit tae assessed. tt f� e Additipf �odgmg�ihhes that wish to pay the assessment and receive NBTBID e %f services it futureuay do so with the approval of the NBCVB Board and i_ through the e ,>rution of an agreement with the City. Formation: iD formal requires submittal of petitions from lodging businesses gl reprlting t4lore than 50% of the total annual assessment followed by a City Councz,, wing and an opportunity for a written protest. The assessed lodging :.�.. businewowners will receive notice of the public meeting and the public hearing by mail. If there is a majority written protest, the TBID will not be formed. Duration: The proposed District NBTBID will have a five -year life. The NBTBID assessment will be implemented beginning May 1, 2009 and will be in effect for five years. After five years, the petition and City Council hearing process must be repeated for the NBTBID to be renewed. Also, once per year there is a 30 day period in which owners paying more than 50% of the assessment may protest and terminate the district. Newport Beach Tourism BID Management District Plan Page 2 II. WHY A TOURISM BID FOR NEWPORT BEACH? There are several reasons why now is the right time to form a Tourism BID in Newport Beach; the most compelling reasons are as follows: 1. 2. The Need to Increase Occupancy The formation of the NBTBID is a proactive effort to beyond that provided by the City of Newport Beach. TI has adequate financing for the investment required to iris industry and reach competitive in the conference sege investment will cover an expanded marketing and AN this market segment.. An Opportunity for Increasing City Tax As occupancy rates increase, public /private funding for it significantly as the new marl Greater occupancy will also 1 spending. This represents a sut partnership with the NBCVB promotion !tg(g,;,,, 3. The Ability to &o„w the The NBCVB expet~ proportfz, krcrease'i notd"evelopmSe`ithould iequired to raise o'e�c pa td�e,existing facrlr .�' "; =,, rl, supplemental funding iQn ensures the NBCVB occupancy in the lodging e tourism market. The Tfudeet needed to reach so too will tl e'., ' ; s T "OT revenue: With stable NBCVB, annu ' .; ccupancy rates should increase g and sales proinan programs are implemented. uU o MF.t ,increase in revenues from tourist tanttal re e Crty formation of a NBTBID in reates a sta l ,,,source tied directly to tourism Development the above levels of revenue growth without a in ,,V of the tourism industry infrastructure. Little or to raise average occupancy rates. Any development n more should be relatively minor in scope compared Newport Beach Tourism BID Management District Plan Page 3 <r' i III. WHAT IS A TOURISM BUSINESS IMPROVEMENT DISTRICT? Tourism Business Improvement Districts (TBIDs) utilize the efficiencies of private sector operation in the market -based promotion of tourism districts. Tourism BIDS allow lodging and tourism- related business owners to organize their efforts to increase tourism. Tourism- related business owners within the district fund a TBID, and those funds are used to provide services that the businesses desire and that benefit the lodging businesses within the District. Tourism BID services may include, but are not limited ➢ Marketing of the Area ➢ Tourism Promotion Activities ➢ Sales Lead Generation In California, Tourism BIDs are formed pursuant to = - perVand Business Improvement District Law of 1994 (PBID Law). This law allow, e creation of a special benefit assessment district to raise funds wrthui cific geographic9 The key difference between TBIDs and other special benefit assessnig f h ,acts is that rs 4#&ed are returned to the private non -profit corporation governing tho d:sprIlrba s -t� There are many ➢ Funds ➢ Tourism 1 "➢ They allu l� Tourism iassessmej ➢ The statu the aitt7ua ➢ They pfoi Tourism be divi•ted for other`gpvernment programs; needs of each tourism district; a i tr tange of services, including those listed above; created and governed by those who will pay the petition support from lodging businesses paying over 50% of assessments; a stable funding source for tourism promotion. The Property and Business Improvement District Law of 1994 (AB 3754), as amended January 1, 2008, is provided in Appendix 1 of this document. Newport Beach Tourism BID Management District Plan Page 4 IV. NEWPORT BEACH TBH) BOUNDARY The Newport Beach TBID will include six lodging businesses available for public occupancy within the boundaries of the City of Newport Beach. The hotels to be included are the Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson Newport Beach, and the Balboa Bay Club and Resort. The avai ;er map is Newport Beach Tourism BID Management District Plan Page 5 Newport Beach Tourism BID Management District Plan Page 6 V. SERVICE PLAN AND BUDGET A. Assessment The Newport Beach TBID will include six lodging businesses of 100 rooms or more, existing or in the future, available for public occupancy within the boundaries of the City of Newport Beach. The hotels to be included are the Fairmont Newport Beach, the Hyaq -, gency Newport Beach, the Newport Beach Marriott Bayview, the Newport Beach MarriotOHote]`' ^& Spa the Radisson Newport Beach, and the Balboa Bay Club and Resort. Based .', benefits received, stays by airline personnel and government employees on governmenbus'irss, shall not be assessed. Similarly, time shares shall not be assessed. Additional lodging facilities that wish to pay the future may do so with the approval of the M agreement with the City. Bonds will not be issued. The amount of assessment, if passed on amount of rent charged and any other apf for payment from the business. State law provides tl received by assessed A speciatAbibnefit is d cone on the public surroun' , o community activity or seice to be large are conveyed:by it kf. services. These se 1 ice< fi, ,�. on particular busines"` s.�": the district vent and receive NBT 1p services in the Board end through the'° Lion of an iient, shafisepazately stated from the _.: ;and each transient shall receive a receipt apportioned in proportion to the benefit as a cular and distinct benefit over and above general benefits rge. r % ely, a general benefit is a benefit to businesses in the gji�be"nefit_. the public in general resulting from the improvement `'ci by the assessment levied. Many general benefits to the public at pal services, such as fire protection, police services and public transit geted to serve the public at large and do not confer special benefits The services in this Management District Plan are -designed to provide targeted services to the assessed lodging businesses. These services are tailored not to serve the general public, but rather to serve the specific lodging businesses within the District, e.g., the proposed activities are specifically targeted to increase room nights for assessed lodging businesses within the boundaries of the District, and are narrowly tailored. For example, only the assessed lodging businesses will receive sales leads from the sales efforts paid for with TBID monies. In addition, listing on websites and collateral materials paid for with TBID monies will only include the six assessed businesses. Newport Beach Tourism BID Management District Plan Page 7 The activities paid for from assessment revenue are lodging business services creating special benefit to those businesses. In addition, these activities are not for the benefit of the general public and do not provide general benefit as defined above. All general benefits (if any) to the surrounding community and general public are intangible and unquantifiable. It is appropriate that these special business - related benefits be funded through business assessments. C. Time and Manner for Collecting Assessments The NBTBID assessment will be implemented beginning May 1, 20( years. The City of Newport Beach will be responsible for collectingg basis (including any delinquencies, penalties and interest) from eaft located in that the boundaries of the TBID. Assessments shape c shall take all reasonable efforts to collect the assessments from each of Newport Beach shall forward the assessments to :the 'I responsibility to manage the BID programs as provided in the I City shall charge a fee of up to Y< of 1% of the bu4g o cover its D. Service Plan Budget and Programs to be Service Plan Budget Summary- The summary of the calendar year 2009 Near provided below. The total five year impxove approximately $1.7 million.n yally, or $8.5 rni R-11,r The assessments colW&d will �d the direct ..T nights at the six particlp� hoteli3Y,! The direct • Nalesa • YC,.��mu • A, dminis Additionahya E. Annual 2009 -20 nd will continue for five assessment on a monthly the six lodging business pd monthly and the City Bing business. The City h will have the hen kstrict Plan. The administrati 13 ,budget for the NBTBID is plan budget is projected at efforts for group sales to generate room fidget will include: City will cafct'/ of 1% of the total assessment for administrative expenses. A service plan budget h been developed to deliver service levels throughout the District. An annual service plan and budget will be developed and approved by the NBCVB Board. Please see the budget exhibit below. The budget also includes a portion for contingencies and renewal of the District. Should the NBCVB Board approve, funds may be appropriated for the renewal effort. If there are funds remaining at the end of the District term and lodging businesses choose to renew, these remaining funds could be transferred to the renewed District. If there are funds remaining at the end of the District and lodging businesses choose not to renew, any remaining funds will be spent consistent with this Plan. This service plan will only include hotels that are participating in the NBTBID. Newport Beach Tourism BID Management District Plan Page 8 R711 I 11`r- Ol owners' p,ssociaed wry the day-to-day operation The NBCVB shall serve as the. Owti 1 be Charge Tourism Director of the NBCVB shal BID. Pag nistrict Plan APPENDIX 1— THE PROPERTY AND BUSINESS IMPROVEMENT .DISTRICT LAW OF 1994 APPENDIX 1— THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 STREETS AND HIGHWAYS SECTION Amended January 36600. This part shall be known and District Law of 1994." 36601. The Legislature finds and declares al' (a) Businesses located an p dating within economically disadvan drilize inadequate facilitiies„_sdoffikices, a (b) It is in the public iiitt to of the business districts of S11 �_- erosion of ttt��l?r�iness,drstnct (c) It is of�i cU 1 5 1- enef maintenance, and achvhtffiro ies in the e as the "Pi8W. and Business Improvement of this state's communities are are unable to attract customers due to districts. italization and physical maintenance attract new businesses, and prevent the cities to fund business related improvements, iY of assessments upon the businesses or real property thatkreriefi from those rmpx i emenf (d) Assessmilts levied for tIi urpoge of providing improvements and promoting activities that benefit real piftk -ity or buss es are not taxes for the general benefit of a city, but are assessments for 03mi venrents and activities which confer special benefits upon the real property or busineiI44- or lv�ch the improvements and activities are provided. 36602. 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. 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 Newport Beach Tourism BID Management District Plan Page 10 S A%4- 1-�• Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Any provision in this part that conflicts with any other provision of law shall prevail over the other provision of law. 36604. 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. Definitions 36606. "Assessment" means a levy for the purpose of maintaining improvements and promoting activities W... businesses located within a property and business ' K. 36607. "Business" means all types of businesses and professions. 36608. "City" means a city, county, city abdllFbitttty, or an Article 1 (commencing with Section 6500) of Chjt r 6 1 Government Code, the public member agencIS of wli and county. or benefit the v erties or and pity created pursuant to f Title 1 of the cities, counties, or a city 36609. "City council':`titeans the city council of a city or the board of supervisors of a county, or 44 ir. the agency, commission , Opard created pursuant, point powers agreement and which is a city within the meaning Of 36610 "Itriprovemeri means t r guisition, construction, installation, or maintenance of any tangibly property with art4lunated�eul:aife of five years or more including, but not limited to, the €011 (a) Park "`fgcilities..N _ (b) Bencheg'�.tg hs kiosks, display cases, pedestrian shelters and signs. (c) Trash recept s and p4, restrooms. (d) Lighting and hea ng; f ilities. (e) Decorations. == (f) Parks. (g) Fountains. (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 thearea. (k) Ramps, sidewalks, plazas, and pedestrian malls. (1) Rehabilitation or removal of existing structures. Newport Beach Tourism BID Management District Plan Page 11 36611. "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part. 36612. "Property" means real property situated within a district. 36613. "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 retentio_ =did recruitment. (e) Providing security, sanitation, graffiti removal, street and sid= cleaning, and other municipal services supplemental to those normally provided 11Y60-Iffie 9 M ipality. (f) Activities which benefit businesses and real property locatin the t. 36614. "Management district plan" or "plan" 36614.5. "Owners' association" means a private to administer or implement activities and impro plan. An owners' association may be an xistiq entity. An owners' association is a pnva%� ¢ritit, any purpose, nor may its board members or saf purpose. Notwithstanding this section, an owne Brown Act (Chapter 9 (commencing with Sec Government Code), at all t^if5)hen matters w discussed, or delib( with Section 6250) to activities of the ( 36615. "Prcltter" or as defined in Stion 36622. onpi'gf nti at is under con et with a city ements § bd in the management district nonprofit a or a newly formed nonprofit and may not nsidered a public entity for - c :iF' onsidere d to blic officials for any , s a gcioon shall triply with the Ralph M. 1 of the g5b ;`1`of Division 2 of Title 5 of the the suliJI matter of the district are heard, )lie Rec6rds Act (Chapter 3.5 (commencing vernment Code), for all documents relating shown as the owner of land on the last equalize ssessmenY'rtl� otheise known to be the owner of land by the city council. The city c d < it has no oblig t do ob tl ther information as to the ownership of land, and its lip . deteimi is of owners}up�11 be fiit t7 an d conclusive for the purposes of this part. Wherever this subdivr requires the ature of the property owner, the signature of the authorized agent of the pr . a owner shun be sufficient. 36616. "Tenant" tneft- 'kcupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. EW Prior Law 36617. This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall 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. Every improvement area established pursuant to the Parking and Business Newport Beach Tourism BID Management District Plan Page 12 "3i Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part . Establishment 36620. A property and business improvement district may be established as provided in this chapter. 36620.5. A county may not form a district within the territorial jurisdig`( i,qf a city without the consent of the city council of that city. A city may not form a distritrwithin the unincorporated territory of a county without the consent of the board of supervigs�r &hat county. A city may not forma district within the territorial jurisdiction of another�4ty wit,the consent of the city council of the other city. 36621. (a) Upon the submission of a written petitiort;�signed by the property orbs riies owners in the proposed district who will pay more than 50. Went of he psessments prop to be levied, the city council may initiate proceedings to form "' st:the adoption- df a resolution expressing its intention to form a district. The amount of . essment attributable to property or a business owned by the same property or smess owner that'itft, iexcess of 40 percent of the amount of all assessments proposed to be`levr.shall not be m- d determining whether the petition is signed by property or business owti who will pay _re than 50 percent of the total amount of assessments proposed to be 1 ied. (lid I = - ehtiongf property or business owners required under subdi ion (a) shall in " ud-a sum ° the management district plan. That summary shall include t followings f,;. (1) A map showing th�l3oundan the district -� (2) Information spec fying;y5where dOcomplete management district plan can be obtained. (3) Information specifying tithe cram fete managdtnent district plan shall be furnished upon request (c) Tb resrlution o intiondi subdivision (a) shall contain all of the (1) A brief description '1 rop6sed.act}vities and improvements, the amount of the proposed asse nin" t a,statement as � het her e assessment will be levied on property or businesses within the riict, a state me „ to whether bonds will be issued, and a description of the exterior bouh ids of the pro =gsed district. The descriptions and statements do not need to be detailed and s sufficier if they enable an owner to generally identify the nature and extent of the improve merit;an d att vities and the location and extent of the proposed district. (2) A time and place f5a'`public hearing on the establishment of the property and business improvement district did the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. The management district plan shall contain all of the following: (a) 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 district. (b) The name of the proposed district. (c) A 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 Newport Beach Tourism BID Management District Plan Page 13 31 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. This 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 Improvement Area 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 this 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 (d) The improvements and activities proposed for each year of op( maximum cost thereof. (e) The total annual amount proposed to be expended for operations, and debt service in each year of operation of 1 (f) The proposed source or sources of financing, includii levying the assessment in sufficient detail to allow earl the amount of the assessment to be levied against, 4 her shall state whether bonds will be issued to finance imti"` 6-e: (g) The time and manner of collecting the assessments. (h) The specific number of years in which assessments will- le maximum number of years shall be five:on_renewal, a dish 10 years. Notwithstanding these limrtatrons ariisttict created pui capital improvements with bonds may levy bssessh�iei lltWtil the bonds. The management district plan may sett`: year of operation of the disstrie( .. (i) The proposed time fig - npiein ptation and (j) Any proposed rules atad regulattons to be a. (k) A list of the prope usinesses to be for properties to be as sessed; artd <a statements a district wilemsed anon Benefited "real or business ,rtv or bush iant to this part. district and the and and basis of r to calculate h"lan also In a new district, the Il have a term not to exceed yo this part to finance 7mum maturity of the in assessments for each )n offhe management district plan. to the district. including the assessor's parcel numbers :thod or methods by which the expenses of or businesses, in proportion to the benefit e propr rb o d s defray the cost thereof, including operation and The plan m provide that alt or any class or category of real property which is v from real prrty taxation may nevertheless be included within the boundaries of the distncM. shall not be sdl ct to'assessment on real property. (1) Any other i n pr matter re4iiired to be incorporated therein by the city council. 36623.(a) If a city cdiffioiL) roposes to levy a new or increased property assessment, the nonce and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing 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 written 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 identify the business and, if a person subscribing is not shown on the official records Newport Beach Tourism BID Management District Plan Page 14 22 ;b of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners of businesses in the proposed district which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the 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. 36624. At the conclusion of the public hearing to establish the district %e'tity council may adopt, revise, change, reduce, or modify the proposed assessment ,,Q i he type or types of 6;;;�_, improvements and activities to be funded with the revenues fr i'th --' ssments. Proposed assessments may only be revised by reducing any or "il of them -4t the public hearing, the city council may only make changes in, to, or from the i'Gu n aries of th &T FsR posed property ,_ and business improvement district that will exclude t tP tory that will not be& in the proposed improvements or activities. Any modffi,gtions, revisions, reductions,=otilari`ges to the proposed assessment district shall be reflected m then " an uaat to Section ft 36627. 36625. (a) If the city council, following hc hearing, de �1s�� to establish the proposed property and business improvement distri� 34 b ity council shalopt; a resolution of formation that shall contain all of the following: (1) A brief description of the proposed activit s and�iitiepei, the amount of the proposed assessment, a statement asrolwhether the arse im it will be=1a``u led on property or businesses within the district, a statetment'a(5bfi% whether bonds will be issued, and a description of the exterior boundaries o(Iie propose�listrict The descriptions and statements do not need to be detailed and shall be su eient if tV enable an own�o generally identify the nature and extent of the improvements and actr�atii ` ' E ��catio rid extent of the proposed district. (2) The numb d pf adopq,I ji% and tifle of x resolution of intention. f (3) The time and plate w iere th public hearing was held concerning the establishment of the distr (4) A def ation regardi !any prohests received. The city shall not establish the district or k� « levy assess A us if a malo i otesf was received. (5) A statement tliat the propetes or businesses in the district established by the resolution shall be subject to any'andments to this part. (6) A statement thate impiovements and activities to be provided in the district will be funded by the levy of the ents. The revenue from the levy of assessments within a district shall not be used to provideimprovements 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 improvements and activities funded by the assessments proposed to be levied. (b) The adoption of the resolution of formation and recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. Newport Beach Tourism BID Management District Plan Page 15 36626. 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 36624, 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 information about the preliminary resolution if none has been adopted., 36627. Following adoption of the resolution establishing the district or 36626, the clerk of the city shall record a notice and an assessment Section 3114. If the assessment is levied on businesses, the text o-A modified to reflect that the assessment will be levied on businesses, within the area of the district. No other pro` Section 3100) applies to an assessment district created I 36628. The city council may establish one or based upon the degree of benefit derived from the info) within the benefit zone and may impose a different ass If the assessment is to be levied on businesses, the city usuant to Section 36625 iagrhm pursuant to recorded notice shall be 4,01ecified. categories of 5 (commencing with this paw it zones withi ydr` strict activities to be,,'rovided hm each benefit zone. y also define categories of businesses based upon the degree of bene,5b at each will der om the improvements or activities to be provided within the dtstric :'` _impose a di ^ sessment or rate of assessment on each category of business, or ea i tit ory of bugibss within each zone. gV age 36628.5. The city council mad l_ assessments Qbusmessaron property owners, or a combination of the twop, ptrsuM; o this part Thy city council shall structure the assessments in whatever manner rt cihnines cd v ponds with th distribution of benefits from the proposed improvements and activities;:.? 36629. establishment, modification, or disestabhstiitent of a�}i riy and usiness improvement district apply to the establishment, modi ton, or dtsestabTji ent o berse rt zones or categories of business. The city council shall; t e blish, modify, BF 41sestaby9h a benefit zone or category of business, follow the procedure fo ietablish, modifpr disestablish a parking and business improvement area. 36630. If a prope kgnd bus»<iess improvement district expires due to the time limit set pursuant to subdivision (h) of e AoR 36622, a new management district plan may be created and a new 11 Y district established purs!'drit to this part. Assesments 36631. 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 establishing the management district plan described in Section 36622. 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., Newport Beach Tourism BID Management District Plan Page 16 i� i1 36632. (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 beneif >cofi the improvements and service funded through these assessments, and shall not be s to any as :(, 6 pursuant to this part. 36633. The validity of an assessment levied under this or proceeding unless the action or proceeding is comnni levying the assessment is adopted pursuant to Section in an action or proceeding shall be perfected within 36634. The city council may execute baseline service city services that would continue after arty and 1 formed. 36635. The owners' association may, at any management district plan An ..g, 9dificafior pursuant to this chapter, ^r s� 36636. (a) Upon the writ management district plan city c from after of all of of the f (1) The ..,IIi1N4]LSiii::. of the assessments a public heat(ig.:on .1.::;:::.., or increased as�i?ss iblic meetings of k once at least seven d' (2) A complete.copy rt be covted in any action .30 days aft a resolution appeal from ii4judgmen p entry of judgw&tt. t would establish levels of district has been :city council modify the district plan shall be made the owners s oiation, the city council may modify the '{'gppiblc hearing on the proposed modifications. The ..nt 'activities to be funded with the revenue derived >pting a resolution determining to make the modifications ID oed modifications. If the modification includes the city council shall comply with Section 36623. Notice hearings pursuant to this section shall comply with both .ofrshall be published in a newspaper of general circulation in the city ore the public meeting. resolution of intention shall be mailed by first class mail, at least 10 days before the publictmeeting, 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 the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. 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. Newport Beach Tourism BID Management District Plan Page 17 Financing 36640. (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance 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 the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, sla,FIIibi ;yem the proceedings relating to the issuance of bonds, although proceedings under the Rtiid Act of 1915 may be modified by the city council as necessary to accommodate asse evied upon business pursuant to this part. (b) The resolution adopted pursuant to sdivisi shall generally describe the proposed improvements specified in the reso� n of formation adopted pursuant to Section 36625, set forth the estimated cost of those im vements, specify fife Ciumber of annual installments and the fiscal years during which they' - Jo be collected. The arrililift of debt service to retire the bonds shall not exceed the am Z! taf reven estimated to be7 ed from assessments over 30 years. (c) Notwithstanding any of otine f this part, assessments levied to a the principal and interest on an bond issue '``J° pay y �'-p'suant to this section shall not be reduced or terminated if doing so woulfbnterfere with the tinty =retirement of the debt. 36650. (a) The owner&sociati`d,&hall cause to; e prepared a report for each fiscal year, except the first year, for which I smen%lare to be levies �ar�d collected to pay the costs of the improvements and activitie"esc ',14 ',,.,,the reports; The owners' association's first report shall be due after e tX_ear of dpertion 6 -f 20 @ rtct. The report may propose changes, including, but not lix to, benefitAI, es within is used. respect to that report shall strict by n daneof the property and business improvement district or any ,YLrct, the b s s and method of levying the assessments, and any d}properncluding any categories of business, if a classification b filed with the clerk and shall refer to the property and business z, ame pecify the fiscal year to which the report applies, and, with hcontain all of the following information: (1) Any proposed I es tfI4he boundaries of the property and business improvement district or in any benefit zones or t , sification of property or businesses within the district. (2) The improvement&:' 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 of any 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' association or may modify any particular contained in the report and approve it as modified. Any Newport Beach Tourism BID Management District Plan Page 18 modification shall be made pursuant to Sections 36635 and 3 663 6. 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. 36651. The management district plan may, but 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' associatioq#he city shall contract with the designated nonprofit corporation to provide services. � 36660. (a) Any district previously established whose term hasexpr e renewed by following the procedures for establishment as provided m thislrapter ( +4itpon renewal, any remaining revenues derived from the levy of assessment, ar revenues la ved from the sale of assets acquired with the revenues, shall be transfenezl to the renewed is _` I„f the renewed district includes additional parcels or businesses ngtgluded iri-Ahe prior district, maining revenues shall be spent to benefit only the pazcelg'oresses be prior distric f the s_ renewed district does not include parcels or businesses u7�..d. in the prior district, the remaining revenues attributable to these parcels shall be re d to the owners of these parcels or businesses. (c) Upon renewal, a distri cfash,a have a term no fi exceed 10 years, or, if the district is authorized to issue bonds, until tlieium maturitys€)h se bonds. There is no requirement that the boundaries, assessmen ts, or act'ties of a renewed district be the same as the original or prior district 36670. (a) Any district'e�i b�ishedW extended pursuant to the provisions of this part, where there is no indebtedness o i stars tri .gripaid, in i nred to accomplish any of the purposes of the district, i a b�dl estabhislaby resolfrtip s by the city council in either of the following (1) If'g�ity council fiAW ere has+ en, risappropriation of funds, malfeasance, or a violation ' of law i IO+Tection with anageYnEit of the district, it shall notice a hearing on disestablis '- t.+ -• istrict there shall be a 30-day period each year in which (2) During tha�:operation of tlf€1� y pe y assessees may request disestaU ishment of the district. The first such period shall begin one year after the date of esta lftir�ei t of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of thy'° district shall have such a 30 -day period. Upon the written petition of the owners of real property or 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 a 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 Newport Beach Tourism BID Management District Plan Page 19 L, L 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 more than 60 days after the adoption of the resolution of intention. 36671. (a) Upon the disestablishment of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of 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 districtAn. which assessments were levied by applying the same method and basis that was used to lculate the assessments levied in the fiscal year in which the district is disestablished. A11=fustanding assessment revenue collected after disestablishment shall be spent on imp>em and activities specified in the management district plan. (b) If the disestablishment_ocus befor "assessment is levied for the fiscal year, the method and basis that was used toulaft the assessnts levied in the immediate prior fiscal year shall be used to calculate _tlfamount of any refundY_, Newport Beach Tourism BID Management District Plan Page 20 APPENDIX 2 - LODGING BUSINESSES TO BE ASSESSED WITHIN THE NBTBID: Newport Beach Tourism BID Management District Plan Page 21 RESOLUTION NO. 2009 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO ESTABLISH THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (NBTBID) 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 § 36600 et seq., authorizes cities to establish property and business improvement districts for the purposes of promoting tourism. WHEREAS, the Newport Beach Conference and Visitors Bureau ( NBCVB) composed of lodging business owners, members of the business community and representatives from the City of Newport Beach have met to consider the formation of the Newport Beach Tourism Business Improvement District (NBTBID). WHEREAS, the NBCVB has drafted a Management District Plan which sets forth the proposed boundary of the NBTBID, a service plan and budget, and a proposed means of governance. WHEREAS, lodging business owners paying more than 50% of the proposed assessment have petitioned the City Council to establish the NBTBID. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: 1. The recitals set forth herein are true and correct. 2. The City Council finds that the lodging businesses that will pay more than fifty (50) percent of the assessment proposed in the Management District Plan have signed and submitted petitions in support of the formation of the NBTBID. The City Council accepts the petitions and adopts this resolution of intention to establish 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. 3. The City Council finds that the Management District Plan satisfies all requirements of Streets and Highways Code § 36622. 4. The City Council declares its intention to establish 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. 5. The boundaries of the NBTBID shall be the boundaries of the City of Newport Beach, as depicted on the attached map, incorporated herein as Exhibit A. r -� 6. The name of the district shall be the Newport Beach Tourism Business Improvement District (NBTBID). 7. The NBTBID shall assess six (6) hotels within the city limits of Newport Beach 2.0% of gross short term (stays less than 30 days) room rental revenue. 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, and the Balboa Bay Club and Resort. Gross room revenue is defined as total room revenue less any local, state or federal sales taxes or transient occupancy taxes. Lodging business stays of more than 30 consecutive days shall not be assessed. Based on benefits received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, time shares shall not be assessed. 8. The assessments levied for the NBTBID shall be applied toward sales promotion and marketing programs to market Newport Beach as a tourist, meeting and event destination, and other activities as set forth in Streets and Highways Code § 36613. 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. 9. The NBTBID will have a five (5) year term unless renewed pursuant to Streets and Highways Code § 36660. 10. No bonds will be issued. 11. The time and place for the public meeting to hear public testimony regarding establishment of the NBTBID and the levy of assessments are set for April 14, 2009, at 7:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at 3300 Newport Boulevard Newport Beach, California. 12. The time and place for the Public Hearing to establish the NBTBID and the levy of assessments are set for April 28, 2009, at 7:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at 3300 Newport Boulevard Newport Beach, California. 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 required by Streets and Highways Code § 36623. 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 (50) percent or more of the estimated total assessment of the entire NBTBID, no further proceedings to establish the NBTBID shall occur. 14. The complete Management District Plan is on file with the City Clerk, 3300 Newport Boulevard Newport Beach, California 92663 and may be reviewed upon request. 15. This resolution shall take effect immediately upon its adoption by the City Council. I HEREBY CERTIFY that the foregoing resolution of intention was introduced and adopted at a regular meeting of the City Council on the I 01 day of March 2009 by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Mayor ATTEST: City Clerk '4zv Newport Beach Tourism BID Management District Plan I ._C-- Page 6 `) * RESOLUTION NO. 2009 14 Authorized to Publish Advertisements of all kinds A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT Decree of the Superior Court of �� September 29, 1961, and A -2483 e /r D BEACH DECLARING ITS INTENTION TO ESTABLISH THE NEWPORT C BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (NBTBID) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A 7a n 19 la: Q LFUBLIC HEARING THEREON AND GIVING NOTICE THEREOF [� PROOFO F L I C, WHEREAS, the Property, and Business Improvement Law of 1994, Streets and Highways Code § 36600 at seq., authorizes cities to establish property and business improvement districts for the purposes of promoting tourism. WHEREAS, the Newport Beach Conference and Visitors Bureau (NBCVBI composed of lodging business owners, members of [4lw business community and representatives from the City of Newport Beach have and to consider the forma tion of the Newport Beach Tourism - - Bnsumn Improvement District (NBTB M). STATE OF CALIFORNIA) WHEREAS, the NBC\B has drafted a Management District Plan which sets forth the proposed boundary of the NBTBID, a service plan and budget, and a proposed means of governance. WHEREAS, lodging business owners paying more than 50% of the proposed assessment hate pensioned the City Council to COUNTY OF ORANGE ) establish the NBTBID. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: am a Citizen of the United I. The recitals set forth herein arc we and correct. 2 The City Council finds that the lodging businesses that will pay more than fifty (50) percent of the assessment proposed in the resident of the County afo Management District Plan have signed and submitted petitions in support of the formation of the NBTBID. The City Council over the age of eighteen yez accepts the petitions and adopts this resolution of intention to establish 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, party to or interested in the I 3. The City Council finds chat the Management Distinct Plan satisfies all requirements of Streets and Highways Code §36622. matter. I am a rinei al P P 4. The City Council declare its intention to establish 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. NEWPORT BEACH - CC 5. The boundaries ofthe NBTBID shall be the boundaries ofthe City of Newport Beech, as depicted on the attached map, incorporated DAILY PILOT, a newspap( herein as Exhibit A. circulation, printed and put 6. The name of the dstrict shall be the Newport Beach Tourism Business Improvement District (NBTBID). 7 The NBTBID shall assess six (6) howls within the city limits of Newport Beach 2.0% of gross short term (nays less than 30 days) City of Costa Mesa, Count room rental revenue. The NBTBID shall include the Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Newport State of California, and t Beach Marriott Bayview, the Newport Beach Mamon Hotel A Spa, the Radisson Newport Beach, and the Balboa Bay Club and Resort. Gross room revenue is defined as amil room revenue less any local, state or federal sales taxes or transient occupancy Notice is a true and comp taxes. Lodging business stays of more than 30 consecudvedays shall not be assessed. Based on benefits received, stays by airline personnel and government employees on government business shall not be assessed. Similarly. time shares shall not be assessed. was printed and publisl 8. The assessments levied for the NBTBID shall be applied toward sales promotion and marketing programs to market Newport following dates. Beech as a tourist, meeting and event destination, and other mfivmes as set forth in Streets and Highways Code § 36613, Funds remaining in the end of my may be used in sulinquem,vears in which NBTBID assessments arc levied as long year as they are used consistent with the requirements of this resolution. 9. The NBTBID will have a five (5) year term unless renewed pursuant to Strata and Highways Code § 36660. 10. No bonds will be issued. March 14, 2009 11 The time and place fm the public meeting to hear public testimony regarding establishment of the NBTBID and the levy of assessments are set for April 14, 2009, at 7:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at 3300 Newport Boulevard Newport Beach, California. 12. The time and place for the Public Hearing to establish the NBTBID and the levy of assessments are set for April 28, 2009, at 7:00 p.m., or as soon thereafter as the maser may be heard, at the Council Chamber located at 3300 Newpon Boulevard Newport Beach, California. The City Clerk is directed in provide written notice to the lodging businesses I declare, under penalty of subject to assessment of the date and time of the hearing and to provide that notice required by Streets and Highways Code §36623. the foregoing is true a 13. At the public hearing the testimony of all interested persons for or against the establishment of the NBTB(D may be and 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 (50) percent or more of the estimated total assessment of Ilse entire NBTBID, no further proceedings to establish the NBTBID shall occur. Executed on March 17, 20 24. The complete Management District Plan is on file with the City Clerk, 3300 Newpon Boulevard Newport Beach, Costa Mesa, California. California 92663 and may be reviewed upon request. 15. This resolution dull take effect immediately upon its adoption by the City Council. PASSED, APPROVED AND ADOPTED in a regular mating of the City Council of [be City of Newport Beach held on the 10" day of March M. h,ayor Signature ATTEST: Cltv Clerk ''''