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CITY OF
NEWPO RT REACH
c "top 'r City Council Staff Report Agenda Item No. 5
April 10, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949- 644 -3002, dkiff(a)newportbeachca.gov
PREPARED BY: Tara Finnigan, Public Information Manager
APPROVED:2�"�1L%�A
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TITLE: Resolution of Intention to Amend the Newport Beach Tourism
Business Improvement District Management District Plan
ABSTRACT:
The Newport Beach Tourism Business Improvement District (NBTBID) owners'
association has requested an amendment to the Management District Plan to expand
the TBID to include the Newport Dunes Waterfront Resort and Marina. The City Council
has the authority to modify the Management District Plan after a public hearing is
conducted on the proposed amendments.
RECOMMENDATION:
Adopt Resolution 2012 - 26 , a Resolution of Intention to Amend the NBTBID and set
the public hearing date for April 24, 2012.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this project. The City of
Newport Beach collects the member assessments on behalf of the NBTBID and retains
0.25 percent of 1% of the total assessments collected in order to reimburse the City for
administrative costs associated with the establishment of the TBID.
DISCUSSION:
The NBTBID is a business improvement district (BID) formed pursuant to the Property
and Business Improvement District Law of 1994, codified in Streets and Highways Code
Section 36600et seq., which helps fund marketing and sales promotion efforts for
Newport Beach tourism businesses. It was established by Council Resolution 2009 - 21
on April 28, 2009 and is administered by Visit Newport Beach, Inc.
Resolution of Intention to Amend the Newport Beach Tourism Business Improvement
District Management District Plan
April 10, 2012
Page 2
The NBTBID includes six hotels or resorts, each consisting of 100 hotel rooms or more,
located within the City of Newport Beach. They 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.
Due to the NBTBID's success in marketing the City's hotel and resort businesses,
representatives of the Newport Dunes Waterfront Resort and Marina contacted the
owners' association to request the inclusion of their property in the BID. The owner's
association then notified the City and asked for the TBID Management District Plan
amendment process to be initiated (Attachment A). Staff from the City Attorney's Office
and City Manager's Office reviewed and revised the existing Management District Plan
(Attachment C) to include the proposed amendments as detailed below:
• An updated list of possible NBTBID activities to incorporate all activities
authorized by the 1994 Act (see Section III);
• The addition of the Newport Dunes Waterfront Resort and Marina (see Section IV
and Appendix 2);
• Language and grammatical changes needed to update the plan to the current
year.
The Property and Business Improvement District Law of 1994 sets forth the process
and procedures required for modifying the Management District Plan and implementing
the amendment. If adopted, the Resolution of Intention (Attachment B) would be
published in the newspaper and a copy would be mailed to each business or property
owner subject to the NBTBID assessment affected by the proposed modification. The
City Council would then conduct a public hearing and consider adoption of the revised
NBTBID Management District Plan on April 24, 2012. A copy of the proposed,
Amended District Management Plan is included as Attachment C to this report for the
Council's reference.
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.
0
Resolution of Intention to Amend the Newport Beach Tourism Business Improvement
District Management District Plan
April 10, 2012
Page 3
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. September 19, 2011 Visit Newport Beach Letter
B. Resolution of Intention 2012 -26
C. Proposed Amended Management District Plan
3
H
VISIT ew ort
�� E'a C TI INC.
September 19, 2011
Dave Kiff
City Manager
City of Newport Beach
3300 Newport Blvd
P.O. Box 1768
Newport Beach, CA 92658
Dear Dave:
On behalf of the assessed businesses in the'Newport Beach Tourism Business
Improvement District, we would like to request the addition of a business to the
district, the Newport Dunes Waterfront Resort and Marina.
e,.
The resort has formally requested to join the district and will contribute the two
percent assessment charge on all of its RV rental pads and cottages on the property.
My understanding is that the city, needs to comply with Streets and Highway Code
and will prepare the appropriate- written amendment to the plan.
Thank you for beginning this process and please let me know whatyou need from
us to facilitate the plan amendment.
Cc: Michael Torres, City Attorney's Office
„1200 Ncl yi 6 r Center Drive
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SWIC 12o 'NewporrBeach, CA 9266o .Tel: 800-94 -COAST Far:.949- 7J9 -.6ia visitnewportbea A..com
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RESOLUTION NO. 2012 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
DECLARING ITS INTENTION TO AMEND THE NEWPORT BEACH TOURISM
BUSINESS IMPROVEMENT DISTRICT (NBTBID) MANAGEMENT DISTRICT PLAN
AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC
HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, in 2009, the City of Newport Beach (City) adopted Resolution No. 2009 - 21 and
established the Newport Beach Tourism Business Improvement District (NBTBID) pursuant to
the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et
seq., (the 1994 Law) and a Management District Plan on file with the City Clerk; and
WHEREAS, the NBTBID currently includes six hotels and resorts and is managed by the
NBTBID's owners' association, Visit Newport Beach, Inc. (VNB). In September 2011, VNB,
requested an amendment of the NBTBID's Management District Plan to include additional
properties, including the Newport Dunes Waterfront Resort and Marina; and
WHEREAS, the Management District Plan, which sets forth the NBTBID boundary, service
plan, budget, and means of governance may be amended by the City Council upon the request of
the VNB and following a public hearing.
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 NBTBID owners' association has requested the
modification of the Management District Plan.
3. The City Council declares its intention to amend the NBTBID Management District Plan
and levy and collect assessments on additional lodging businesses within the NBTBID
boundaries pursuant to the 1994 Law as more frilly set forth in the Amended
Management Plan attached hereto as Exhibit A and incorporated herein by this reference.
4. The boundaries of the NBTBID are the boundaries of the City of Newport Beach, as
depicted on the map attached to the Amended Management District Plan.
5. The name of the district shall remain the Newport Beach Tourism Business Improvement
District (NBTBID).
6. The NBTBID shall assess seven (7) 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 I•lotel & Spa, the Radisson
Newport Beach, the Balboa Bay Club and Resort and the Newport Dunes Waterfront
Resort and Marina. Gross room revenue is defined as total room revenue less any local,
E)
7
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.
7. The assessments levied for the NBTBID shall be applied toward the activities set forth in
the Amended Management District Plan.
The time and place for the Public Hearing to consider the NBTBID Amended
Management District Plan is April 24, 2012 at 7 p.m. or as soon thereafter as the matter
may be heard, at the Council Chambers located at 3300 Newport Boulevard Newport
Beach, California. Pursuant to Section 36623 of the 1994 Law, the City Clerk is directed
to publish this Resolution of intention in a newspaper of general circulation at least seven
days prior to the Public Hearing. The City Clerk is further directed to provide written
notice to the lodging businesses subject to assessment of the date and time of the hearing.
9. At the Public Hearing, the testimony of all interested persons for or against the Amended
Management District Plan may be received. If, at the conclusion of the public hearing,
there are of record 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, the Management District Plan shrill not be amended.
10. The Amended Management District Plan is on file with the City Clerk, 3300 Newport
Boulevard Newport Beach, California 92663 and may be reviewed upon request.
11. 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 10th day of April 2012 by the following vote.
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
Mayor
ATTEST:
City Clerk
Newport Beach Tourism BID Management District Plan Page 9
11
NEWPORT BEACH TOURISM BID
AMENDED MANAGEMENT :DIST'RICT PLAN
TABLE OF CONTENTS
I. INTRODUCTION AND OVERVIEW ...................... ............................... 3
H. WHY A TOURISM BID FOR NEWPORT BEACH? ............... ............................... 4
M. WHAT IS A TOURISM BUSINESS IMPROVEMENT DISTRICT ? ................... 4
IV. NEWPORT BEACH TOURISM BID BOUNDARY .................................... 5
V. SERVICE PLAN AND BUDGET ............................ ............................... 5
VI. TOURISM BID GOVERNANCE ............................ ............................... 8
APPENDIX 1 — THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT
LAWOF 1994 ......................................... ............................... 10
APPENDIX 2 — MAP OF HOTELS AND RESORTS TO BE ASSESSED WITHIN
NEWPORT BEACH TBID ........................ ............................... 26
APPENDIX 3 — NEWPORT BEACH TOURISM BID ADDRESSES AND ASSESSOR
PARCEL NUMBERS ................................ ............................... 28
Newport Beach Tourism BID Management District Plan
Page 2
10
1. INTRODUCTION FIND OVERVIEW
Administered by Visit Newport Beach, Inc. (VNB), the Newport Beach Tourism Business Improvement
District (NBTBID) is a business improvement district formed pursuant to the Property and Business
Improvement District Law of 1994 codified in Streets and Highways Code Section 36600et seq. (the
"1994 Act ") which helps fund marketing and sales promotion efforts for Newport Beach tourism
businesses. N13TBID was formed by the City of Newport Beach ( "City') in 2009 with an initial five (5)
year term. Due to its success in marketing the City's hotels and resorts businesses, additional lodging
business(es) wish to join the NBTBID. Therefore, the NBTBID is requesting that the City amend the
Management District Plan dated March 2, 2009.
Location: The City of Newport Beach
Services: Marketing and sales promotions to increase tourism and to market Newport Beach as a
tourist, meeting and event destination. These services are designed to benefit time hotels
and resorts that will be assessed within the City and other hotel and resort business that
may join NBTBID in the future.
Budget: The anticipated NBTBID budget for year one of its five (5) year operation anticipated a
base of approximately $1.7 million.
Cost: Annual assessment rates are 2.0% of transient (stays less than 30 days) room rental
revenue on the seven (7) hotels and resorts within the City limits of Newport Beach, and
any hotel and resort business that may join 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, the Newport .Dunes Waterfront Resort
and Marina, and any other hotel and resort business that may join NBTBID in the future.
Any transient occupancy that is exempt from the payment of the City's Transient
Occupancy Tax shall not be assessed.
Additional hotels and resorts that wish to pay the assessment and receive NBTBID
services in the future may do so upon the approval of the VNB Board, support from a
majority of the then existing membership of the NBTBID, and through the execution of
an agreement with the City approved by City Council after a noticed public hearing
consistent with Sections 36623 and 36637 of the 1994 Act, as the same may be amended
from time to time.
Formation: NBTBID formation requires submittal of petitions from hotels and resorts representing
more than 50% of the total annual assessment followed by a City Council hearing and an
opportunity for a written protest. The assessed lodging business owners received notice
of the public meeting and the public hearing by mail. In the absence of a majority written
protest, the NBTBID was formed in 2009.
Duration: The NBTBID assessment was implemented beginning May 1, 2009, and will be in effect
for five (5) 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 thirty (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 3
II. WHY TOURISM BID FOR NEWPORT BEACH?
'there are several reasons why the NBTBID was established. The most compelling reasons are as follows:
1. The Neer/ to Increase Occupancy
The formation of the NBTBID is a proactive effort to provide supplemental funding for tourism
promotion and marketing beyond that provided by the City of Newport Beach. The funding ensures
VNB has adequate financing for the investment required to increase occupancy in the lodging
industry and be competitive in the conference segment of the tourism market. The investment covers
an expanded marketing and promotional budget needed to reach this market segment.
2. An Opportunity jor Increasing City Tax Revenues
As occupancy rates increase, so too will the City's TOT revenue. With stable funding for VNB,
annual occupancy rates should increase significantly as the new marketing and sales promotion
programs are implemented. Greater occupancy will also produce an increase in sales tax revenues
from tourist spending. This represents a substantial return to the City. The formation of the NBTBID,
in partnership with VNB, creates a stable funding source tied directly to tourism promotion.
3. The Ability to Grow the Econonry without Substantial Development
VNB expects to achieve the above levels of revenue growth without a proportionate increase in the
"footprint" of the tourism industry infrastructure. It is anticipated that little or no development should
be required to raise average occupancy rates. Any development required to raise occupancy rates
even more should be relatively minor in scope compared to the existing facilities.
III. WHAT IS A TOURISM BUSINESS IMPROVEMENT DISTRICT?
Tourism business improvement districts ( "TBID ") utilize the efficiencies of private sector operation in the
market -based promotion of tourism districts. T BIDS allow lodging and tourism - related business owners
to organize their efforts to increase tourism. Tourism - related business owners within the district pay
assessments and those funds are used to reimburse the cost of providing services that the businesses
desire and that benefit the assessed hotels and resorts with the district.
Pursuant to Section 36613 of the 1994 Act, NBTBID activities may include, but are not limited to:
• Promotion of public events which benefit businesses in the District
• Furnishing of music in any public place within the District
• Promotion of tourism within the District
• Marketing and economic development, including retail retention and recruitment
• Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
municipal services supplemental to those normally provided by the City
• Activities which benefit businesses located in the District
Newport Beach Tourism BID Management District Plan Page 4
In California, TBIDs are formed pursuant to the 1994 Law. This law allows for the creation of a special
benefit assessment district to raise funds within a specific geographic area to support specified activities.
There are many benefits to Tourism BIDS:
Collected assessments cannot be diverted for other government programs;
> Tourism BIDs are customized to fit the needs of each tourism district;
> They allow for a wide range of services, including those listed above;
> Tourism BfDs are designed and created by those who will pay the assessment;
> The statue requires petition support from hotels and resorts paying over 50% of the annual
proposed assessments;
> They provide a stable funding source for tourism promotion.
The 1994 Act, as amended, is provided in Appendix l of this document.
IV. NEWPORT BEACH TOURISM BID BOUNDARY
The NBTBID includes seven (7) hotels and resorts 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
hotels and resorts to be included at present 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, the Balboa Bay Club and Resort, and the Newport Dunes Waterfront Resort and Marina.
The boundary currently includes seven (7) hotels and resorts. Please see the map included as Appendix 2.
A larger map is available on request by calling the VNB at (949) 719 -6100. A list of properties included
in the NBTBID, including addresses and assessor parcel numbers, is included as Appendix 3.
V. SERVICE PLAN AND BUDGET
A. Assessment
The NBTBID includes hotels and resorts of 100 hotel rooms or more, existing or in the future, available
for public occupancy within the boundaries of the City of Newport Beach.' The hotels and resorts
presently included within the NBTBID are the Fairmont Newport Beach, the Hyatt Regency Newport
' The term "hotel room" shall mean any structure, or any portion of any structure or the air space within
any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging
or sleeping purposes for periods of thirty (30) days or less including a space, campsite or similar facility
which is occupied, or intended or designed for occupancy, by a recreational vehicle, camper, van, trailer,
motor home or similar vehicle used, or intended for use as a dwelling, lodging or for sleeping purposes.
The term hotel room includes any inn, residential dwelling unit, motel, group residential or lodging house,
bed and breakfast inn, single room occupancy hotel, hostel, rental unit, public or private residential club,
mobile home, time -share project, house trailer at a fixed location, or other structure or portion of a
structure.
Newport Beach Tourism BID Management District Plan Page 5
13
Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson
Newport Beach, the Balboa Bay Club and Resort, and the Newport Dunes Waterfront Resort and Marina.
Any transient occupancy that is exempt from the payment of the City's Transient Occupancy Tax shall
not be assessed.
Additional hotel and resort facilities that wish to pay the assessment and receive NBTBID services in the
future may do so with the approval of the VNB Board, support from a majority of the then existing
membership of the NBTBID, and through the execution of an agreement with the City and approved by
the City Council after a noticed public hearing consistent with Sections 36623 of the 1994 Act, as the
same may be amended from time to time.
The amount of assessment, if' passed on to each transient, shall be separately stated from the amount of
rent charged and any other applicable taxes, and each transient shall receive a receipt for payment Gom
the business.
B. Determination of Special Benefit
State law provides that the expenses of the district shall be apportioned in proportion to the benefit
received by assessed businesses.
A special benefit is defined as a particular and district benefit over and above general benefits conferred
on the public at large. Conversely, a general benefit is a benefit to businesses in the surrounding
community or a benefit to the public in general resulting from the improvement, activity or service to be
provided by the assessment levied. Many general benefits to the public at large are conveyed by
municipal services, such as fire protection, police services and public transit services. These services are
targeted to serve the public at large and do not confer special benefits on particular businesses.
The services identified in this Management Plan are designed to provide targeted services to the assessed
hotels and resorts. These services are tailored not to serve the general public, but rather to serve the
specific hotels and resorts within the District, e.g., the proposed activities are specifically targeted to
increase room nights for assessed hotels and resorts within the boundaries of the District, and are
narrowly tailored. For example, only the assessed hotels and resorts will receive sales leads from the sales
efforts paid for with "I "BID monies. In addition, listing on websites and collateral materials paid for with
NBTBID monies will only include the seven (7) assessed hotels and resorts that pay the assessment and
any hotel or resort business that may join NBTBID in the future.. As a result, the activities paid for from
assessment revenue are hotels and resorts 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 businesses assessments.
C. Time and Manner for Collecting Assessments
The NBTBID assessment will be implemented beginning May 1, 2009, and will continue for five (5)
years. The City of Newport Beach will be responsible for collecting the assessment on a monthly basis
(including any delinquencies, penalties and interest) from each of the seven (7) hotels and resorts located
in the boundaries of the NBTBID. Assessments shall be collected monthly and the City shall take all
Newport Beach Tourism BID Management District Plan Page 6
I Ll
reasonable efforts to collect the assessments from each lodging business. The City of Newport Beach
forwards the assessments to VNB which will have the responsibility to manage the NB'I'BfD programs as
provided in the Management District Plan. The City retains an up to ''A of 1% of the total collected
assessment, whether or not actually collected, to reimburse the City for administrative costs associated
with the establishment of the NBTBID.
D. Penalties and Interest
Any NBTBID member failing to remit the assessment to the City within thirty (30) days of the time
required shall pay an initial mandatory penalty of ten percent (10 %) of the amount of the late assessment
in addition to the assessment.
Any NBTBID member failing to remit the assessment and the initial penalty within sixty (60) days shall
be liable for It second mandatory penalty of an additional ten percent (10 %).
In addition to the penalties imposed, any NBTBID member who fails to remit the assessment shall pay
mandatory interest on the amount of assessment that is due and owing at the rate of one and one -half
percent (1.5 %) per month for each month or portion of a month that the assessment remains unpaid
exclusive of penalties.
Should a NBTBID member's assessment become twelve (12) months in arrears, it shall be sent to
collections. Penalties, interest and the cost of collection shall become part of the assessment required to
be paid.
Late payments, penalties, and interest shall be deposited and used in the same manner as the basic
assessment. The cost of collection, i f any, shall be used to pay the collections agency.
E. Service Plan Budget and Programs to be Provided:
Service Plan Budget Summary — Calendar Years 2009 -2014
The summary of the calendar year 2009 (year one) service plan budget for the NBTBID is provided
below. The total five (5) year improvement and service plan budget is projected to be approximately $1.7
million annually, or $8.5 million through 2014.
The assessments collected will fund the direct sales efforts for group sales to generate room nights at the
seven (7) participating hotels and resorts that may join NBTBID in the future, including:
• Promotion of public events which benefit businesses in the District
• Furnishing of music in any public place within the District
• Promotion of tourism within the District
• Marketing and economic development, including retail retention and recruitment
• Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
municipal services supplemental to those normally provided by the City
• Activities which benefit businesses located in the District
Additionally, the City shall retain up to ''A of I% of the total collected assessment, whether or not actually
collected, to reimburse the City for administrative costs associated with the establishment of the NBTBID.
Newport Beach Tourism BID Management District Plan Page 7
15
F. Annual Service Plan:
Annually, a service plan budget is developed and approved by the VNB Board. The budget exhibit below
was for calendar year 2009 (year one). The budget also includes a portion for contingencies and renewal
of the District. Should the VNB Board approve, funds may be appropriated for the renewal effort. If
there are funds remaining at the end of the NBTBID term and the assessed hotels and resorts 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 hotels and resorts choose not to renew, any remaining funds will be spent
consistent with this Management District Plan.
This service plan will only include hotels and resorts that are participating in the NBTBID.
Newport Beach Tourism BID
Annual Budget, Year One
SALES and MARKETING
$1,197,167
Sales and Marketing programs and activities will be
designed to attract overnight groups. These activities may
include:
• Sales Missions
• Trade Shows
• Sales Calls
• Sales Manager
ADVERTISING AND COMMUNICATION
$498,583
Advertising and Communication activities will build
greater awareness of the participating hotels. These
activities may include:
• Trade Promotion
• Online Advertising
• Trade Advertising
CITY OF NEWPORT BEACH ADMINISTRATION FEE
$4,250
The City will charge % of 1%
TOTAL TOURISM DISTRICT BUDGET
$1,700,000
VI. BID GOVERNANCE
A. Newport Beach Tourism BID Corporation Governance
VNB shall serve as the Owners' Association for the NBTBID. The Executive Director or Tourism
Director of VNB is under contract with the City to administer and implement the activities specified in
this plan and shall be charged with the day -to -day operations of the Tourism BID.
Newport Beach Tourism BID Management District Plan Page 8 W
APPENDICES
Newport Beach Tourism BID Management District Plan Page 9
1-1
APPENDIX 1
The Property and ]Business Improvement District Law of 1994
Newport Beach Tourism BID Management District Plan
Page 10
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WAIS Document Retrieval
CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36600 -36604
36600. This part shall be known and may be cited as the "Property
and Business Improvement District Law of 1994."
36601. 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.
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 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 farce and effect. Assessments levied under this part are not
special taxes.
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WAIS Document Retrieval
CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36606 -36616
3,6606. "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.
36607. "Business" means all types of businesses and includes
financial institutions and professions.
36608. "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 Division 7 of Title 1 of the Government Code,
the public member agencies of which includes only cities, counties,
or a•city and county, or the State of California.
3&609. "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" 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.
(c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(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 the area.
(k) Ramps, sidewalks, plazas, and pedestrian malls.
(1) Rehabilitation or removal of existing structures.
3661.1. "Property and business improvement district," or "district,"
means a property and business improvement district established
pursuant to this part.
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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 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" or "plan" means a proposal as
defined in Section 36622.
36614.5. "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 5 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 Division 7 of Title 1 of the Government Code), for all
documents relating to activities of the district.
36615. "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 business owner or a property owner. The city council has no
obligation to obtain other information as to the ownership of land or
businesses, and its determination of ownership 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.
36615. "Tenant" means an occupant pursuant to a lease of - commercial
space or a dwelling unit, other than an owner.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36617
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 Improvement Area Law
of 1989 (Part 6 (commencing with Section 36500) of this division) is
valid and effective and is unaffected by this part.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36620 -36630
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
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 form a district within the
territorial jurisdiction of another city without the consent of the
city council of the other city.
36621. (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 district.
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.
(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 nature and extent of the improvements and activities and the
location and extent of the proposed district.
(2) A time and place for a 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.
36622. The management district plan shall contain all of the
following:
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(a) I£ the assessment will be levied on property, a map of the
district in sufficient detail to locate each parcel of properly and,
if businesses are to be assessed, each business within the district.
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) 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 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 created pursuant to this part.
(d) The improvements and activities proposed for each year of
operation of the district and the maximum cost thereof.
(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.
(f) The proposed source or sources of financing, including the
proposed method and basis 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. The plan 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 a new 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 numbers 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
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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.
36623. (a) If a city council proposes to levy a new or increased
property assessment, the notice 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 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 or the authorized
representative. A written protest that does not comply with this
section shall not be counted in determining a majority protest. If
written protests are received from the owners or authorized
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 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, 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 or 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. (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 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, businesses, or
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both within 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
concerning 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 improvements 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 of an assessment in each of the fiscal years
referred to in the management district plan.
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 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.
36628. 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 a different assessment within each benefit zone.
If the assessment is to be levied on businesses, the city council
may also define categories of businesses based upon the degree of
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benefit that each will derive from the improvements or activities to
be provided within the district and may impose a different assessment
or rate of assessment on each category of business, or on each
category of business within each zone.
36628.5. 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 determines corresponds with the distribution of benefits from the
proposed improvements and activities.
36629. All provisions of this part applicable to the establishment,
modification, or disestablishment of a 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 parking and business improvement area.
36630. 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.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36631 -36637
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 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.
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 benefit from
the improvements and service funded through these assessments, and
shall not be subject to any assessment pursuant to this part.
36633. The validity of an assessment levied under this part shall
not be contested in any action or proceeding unless the action or
proceeding is commenced within 30 days after the resolution levying
the assessment is adopted pursuant to Section 36626. Any appeal from
a final judgment in an action or proceeding shall be perfected within
30 days after the entry of judgment.
36634. 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. 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. (a) Upon the written request of the owners' association, the
city council may modify the management district plan after
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conducting one public hearing on the proposed modifications. The city
council may modify the improvements and activities to be funded with
the revenue derived from the levy of the assessments by adopting a
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 increased assessment-, the city council
shall comply with Section 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
the public meeting.
(2) A complete copy of the resolution of intention shall be mailed
by first class mail, at-least 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 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.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36640
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, 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 to accommodate
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 the 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 not be reduced or terminated if doing so would
interfere with the timely retirement of the debt.
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CALIFORNIA -CODES
STREETS AND HIGHWAYS CODE
SECTION 36650 -36651
36650. (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 the report. The owners'
association's first report shall be due after the first year of
operation of the district. The report may propose changes, including,
but not limited 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 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 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.
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' association, the city
shall contract with the designated nonprofit corporation to provide
services.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36660
36660. (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 revenues derived from the levy of
assessments, or any 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 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 a renewed
district be the same as the original or prior district.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36670 -36671
36670. (a) Any district established or extended pursuant to the
provisions of this part, where there 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, there shall be a 30 -day
period each year in which -assessees may request disestablishment 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 next 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 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 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 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. All outstanding assessment revenue collected after
disestablishment shall be spent on improvements and activities
specified in the management district plan.
(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.
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APPENDIX 2
Map of Hotels and Resorts to be Assess Within Newport Beach TBID
Newport Beach Tourism BID Management District Plan Page 26 ��I
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1)Fannart NewPOn Beam l_!r1 , +1s ' �`
4500 MarAnw, Bo.,Wyald. Newpon eeadn. CA 92650
2) Hyatl Regency Newpdrl Bean '
1107 Jam a Road New Beach. CA 92660 %
3) New . Bean M .Il B.,.�JJ r
500 Ba/ Cade Newport Bead, . CA 92660
4) Newport Beaty MvMl Heel B Spa N 1
900 NewpM Cents Dnva. Newpon Bear . CA 92660 /
5) Rtlssoo Nawpwl Burn W � E
1545 MwAM%a Bmdw.d Newpdt Bern CA 92650
6) Bay C end Rmm
1221
+221 N� Coast 1 Noway. Newport e�. CA 92663 S
Proposed A"Iton
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04042012 Tditn0l) Jemed / '
Newport Beach Tourism BID Addresses c& Assessor Parcel Numbers
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Newport Beach Tourism BID Management District Plan Page 28
Newport Beach Tourism Improvement District
Assessed Properties
Fairmont Newport Beach
APN: 445-122-11
Hyatt Regency Newport Beach
APN: 440 - 132 -41
Newport Beach Marriott Bayview
APN: 442- 282 -01
442- 282 -02
442 - 282 -03
Newport Beach Marriott Hotel & Spa
APN: 442-011-68
442 - 011 -69
.Radisson Newport Beach
APN: 427 - 174 -04
Balboa Bay Club and Resort
APN: 049 - 161 -03
049 - 161 -05
Newport Dunes Waterfront Resort & Marina
APN: 440 - 132 -42
440 - 132 -43
440 - 132 -59
APN — Assessor Parcel Number
4500 MacArthur Boulevard Newport Beach, CA 92660
1 107 Jamboree Road Newport Beach, CA 92660
500 Bayview Circle Newport Beach, CA 92660
900 Newport Center Drive Newport Beach, CA 92660
4545 MacArthur Boulevard Newport Beach, CA 92660
1221 West Coast Highway Newport Beach, CA 92663
1131 Back Bay Drive Newport Beach CA 92660
N
RESOLUTION NO. 2012 -26
A 'RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH DECLARING ITS INTENTION TO AMEND THE
NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
(NBTBID) MANAGEMENT DISTRICT PLAN AND FIXING THE TIME
AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING
THEREON AND GIVING NOTICE THEREOF
WHEREAS, in 2009, the City of Newport Beach (City) adopted Resolution No. 2009 -21
and established the Newport Beach Tourism Business Improvement District (NBTBID) pursuant
to the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et
seq., (the 1994 Law) and a Management District Plan on file with the City Clerk; and
WHEREAS, the NBTBID currently includes six hotels and resorts and is managed by
the NBTBID's owners' association, Visit Newport Beach, Inc. (VNB). In September 2011, .
VNB, requested an amendment of the NBTBID's Management District Plan to include
additional properties, including the Newport Dunes Waterfront Resort and Marina; and
WHEREAS, the Management District Plan, which sets forth the NBTBID boundary,
service plan, budget, and means of governance may be amended by the City Council upon the
request of the VNB and following a public hearing.
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 NBTBID owners' association has requested the
modification of the Management District Plan.
3. The City Council declares its intention to amend the NBTBID Management District Plan
and levy and collect assessments on additional lodging businesses within the NBTBID
boundaries pursuant to the 1994 Law as more fully set forth in the Amended.
Management Plan attached hereto as Exhibit A and incorporated herein by this reference.
4. The boundaries of the NBTBID are the boundaries of the City of Newport Beach, as
depicted on the map attached to the Amended Management District Plan.
5. The name of the district shall remain the Newport Beach Tourism Business Improvement
District (NBTBID).
6. The NBTBID shall assess seven (7) 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 Faimtont 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 and the Newport Dunes Waterfront
Resort and Marina. 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.
7. The assessments levied for the NBTBID shall be applied toward the activities set forth in
the Amended Management District Plan.
8. The time and place for the Public Hearing to consider the NBTBID Amended
Management District Plan is April 24, 2012 at 7 p.m. or as soon thereafter as the matter
may be heard, at the Council Chambers located at 3300 Newport Boulevard Newport
Beach, California. Pursuant to Section 36623 of the 1994 Law, the City Clerk is directed
to publish this Resolution of Intention in a newspaper of general circulation at least seven
days prior to the Public Hearing. The City Clerk is further directed to provide written
notice to the lodging businesses subject to assessment of the date and time of the hearing.
9. A( the Public Hearing, the testimony of all interested persons for or against the Amended
Management District Plan may be received. If, at the conclusion of the public hearing,
there are of record 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, the Management District Plan shall not be amended.
10. The Amended Management District Plan is on file with the City Clerk, 3300 Newport
Boulevard Newport Beach, California 92663 and may be reviewed upon request.
11. 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 l Om day of April 2012 by the following vote:
AYES, COUNCIL MEMBERS Hill Rosanskv Curry, Selich, Henn, Daigle, Mayor Gardner.
NOES, COUNCIL MEMBERS None
ABSENT, COUNCIL MEMBERS None
Nancy Gardner
Mayor
•• ,
*Attachment: Management District Plan available for review at the City Clerk's Office, 3300
Newport Boulevard, Newport Beach, California 92663
Offs eofihc Ciry Clerk
CRY HALL
3300 Newpon Blvd.
Newpon Bmcb. CA 97663-3889
IMPORTANT
PUBLIC REARING NOTICE
PROOF 0 CENED
PUBLICALTIEWS
CFi10E OF
THE CITY CLERK
STATE OF CALIFO-14 ItA)- BEACH
) SS.
COUNT( OF ORANGE )
I am a citizen of the United States and a
resident of the County of Los Angeles; I
am over the age of eighteen years, and
not a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH/COSTA MESA
DAILY PILOT, which was adjudged a
newspaper of general circulation on
September 29, 1961, case A6214, and
June 11, 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of California. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
Saturday, April 14, 2012
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on April 18, 2012
at Los Angeles, California
Signature
RESOLUTION NO. 2012-26
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY AF NEWPORT BEACH DECLARING ITS INTEN-
TION TO AMEND THE NEWPORT BEACH TOURISM
BUSINESS IMPROVEMENT DISTRICT (NBTBID)
MANAGEMENT DISTRICT PLAN AND FIXING THE
TIME AND PLACE OF A PUBLIC MEETING AND A
PUBLIC HEARING' THEREON AND GIVING NOTICE
THEREOF
WHEREAS, in 2009, the City of Newport Beach
(City) adopted Resolution No. 2009-21 and estab-
lished the Newport Beach Tourism Business Im-
provement District (NBTBID) pursuant to the
Property and Business Improvement Law of 1994,
Streets and Highways Code § 36600 et seq., (the
1994 Law) and a Management District Plan on file
with the City Clerk; and
WHEREAS, the NBTBID currently includes six hotels
and resorts and is managed by the NBTBID's
owners' association, Visit Newport Beach, Inc.
(VNB). In September 2011, VNB, requested an
amendment of the NBTBID's Management District
Plan to include additional properties, the
Newport Dunes Waterfront Resort and Marina; and
WHEREAS, the'Management District Plan, which
sets forth the NBTBID boundary, service plan,
budgef, and means of governance may be amended
by the City Council upon the request of the VNB
and following a public hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY
COUNCIL THAT:
l.The recitals set forth herein are true and correct.
2.The City Council finds that the NBTBID owners'
association has requested the modification of the
Management District Plan.
3.The City Council declares its intention to amend
the NEITBID Management District Plan and levy and
collect assessments on additional lodging busi-
nesses within the NBTBID boundaries pursuant to
the 1994 Law as more fully set forth in the Amended
Management Plan attached hereto as Exhibit A and
incorporated herein by this reference.
4.The boundaries of the NBTBID are the boundaries
of the. City of. Newport Beach, as depicted on the
map attached to the Amended Management District
Plan.
5.The name of the district shall remain the Newport
Beach Tourism Business Improvement
District (NBTBID).
6.The NBTBID shall assess seven (7) 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, the Balboa Bay -Club and Resort and the
Newport Dunes Waterfront Resort and Marina.
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. Simi-
larly, time shares shall not be assessed.
7.The assessments levied for the NBTBID shall be
applied toward the activities set forth in the
Amended Management District Plan.
8.The.time and place for the Public Hearing to
consider the NBTBID Amended Management District
Plan is April 24, 2012 at 7 p.m. or as soon
thereafter as the matter may be heard, at the
Council Chambers located at 3300 Newport Boule-
vard Newport Beach, California. Pursuant to Section
36623 of the 1994 Law, the City Clerk is directed
to publish this Resolution of Intentionin a ;
newspaper of general circulation at least seven
days prior to the Public Hearing. The City Clerk is
further directed to provide written notice to the
lodging businesses subject to assessment of the
date and time of the hearing.
9.At the Public Hearing, the testimony of all
interested persons for or against the Amended
Management District Plan may be received. If, at
the conclusion of the public hearing, there are of
record 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, the Man-
agement District Plan shall not be amended.
1O.The Amended Management. District Plan is on
file with the City Clerk, 3300 Newport Boulevard
Newport Beach, California 92663 and may be
reviewed upon request.
11.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
10th day of April 2012 by the following vote:
AYES, COUNCIL MEMBERS Hill, Rosansky, Curry,
Selich, Henn, Daigle, Mayor Gardner
NOES, COUNCIL MEMBERS None
ABSENT, COUNCIL MEMBERS None
Nancy Gardner
Mayor
ATTEST:
City Clerk
*Attachment: Management District Plan available
for review at the City Clerk's Office, 3300 Newport
Boulevard Newport Beach, California 92663