HomeMy WebLinkAbout18-29 - Intention to Levy an Annual Assessment for FY18-19, BIARESOLUTION NO. 18-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT
FOR FISCAL YEAR 2018-2019 FOR A BUSINESS IMPROVEMENT AREA
COVERING CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE
TIME AND PLACE FOR A PUBLIC HEARING ON THE PROPOSAL
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, in adopting the Parking and Business Improvement Area Law of
1989 (Streets & Highways Code § 36500 et seq.), the California Legislature
authorized cities to levy assessments on businesses in order to promote economic
revitalization and tourism, to create jobs, attract new businesses, and prevent erosion
of business districts: and
WHEREAS, on July 5, 1995, by Ordinance No. 95-9, the City Council adopted
a business improvement area, commonly known as the Costa Mesa Tourism &
Promotion Business Improvement Area (the "BIA"), the purpose of which is to
promote tourism to the City and to fund programs and activities that benefit the hotel
and motel businesses within the City of Costa Mesa; and
WHEREAS, the eleven (11) hotels and motels listed in Exhibit A, attached
hereto and incorporated herein by this reference, are currently subject to the
assessment; and
WHEREAS, the City Council appointed the general managers of the 11 hotels
and motels subject to the assessment to serve as the advisory board as required by
California Streets and Highways Code Section 36530; and
WHEREAS, said advisory board is known as Travel Costa Mesa ('TCM"); and
WHEREAS, the City Council has voted to continue the special assessment for
the BIA each year since its inception, and it has been levied upon the 11 hotel and
motel businesses listed in Exhibit A; and
WHEREAS, in January 2000, the City Council approved an increase in the
assessment, raising the assessment from one percent (1%) to two percent (2%)
based on the sale of overnight room stays; and
WHEREAS, in November 2010, the City Council approved an increase in the
assessment, raising the assessment from two percent (2%) to three percent (3%)
based on the sale of overnight room stays; and
Resolution No. 18-29 Page 1 of 8
WHEREAS, this Resolution of Intention will commence proceedings under the
Parking and Business Improvement Area Law of 1989 (Streets & Highways Code § 36500
et seq.) to levy the annual assessment of the Costa Mesa Tourism & Promotion Council
Business Improvement Area for the 2018-2019 fiscal year; and
WHEREAS, the Agenda Report and its attachments for the May 1, 2018 City
Council meeting filed with the City Clerk set forth a detailed description of the activities to
be provided in the 2018-2019 fiscal year, the boundaries of the Business Improvement
Area, the benefit zone of the area, and the proposed assessments to be levied upon the
businesses within the area for the coming fiscal year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa
Mesa as follows:
Section 1. Assessment. An annual assessment for the Costa Mesa Tourism &
Promotion Council Business Improvement Area is proposed to be levied pursuant to
Streets & Highways Code § 36500 et seq. The proposed boundaries of the territory are
the 11 motels and hotels listed in Exhibit A. The proposed amount of the annual
assessment is three percent (3%) based on the sale of overnight room stays. New hotel
and motel businesses commenced after the effective date of the resolution levying the
assessment will be exempt from the levy of assessment, pursuant to Streets & Highways
Code § 36531 and § 36535.
Section 2. Annual Report. An annual report on the Business Improvement Area
has been prepared by TCM, acting as the advisory board as required by Streets &
Highways Code § 36533 and § 36534. Said report is on file in the City Clerk's Office.
Section 3. Types of Activities to Be Funded. The proposed type or types of
activities to be funded by and through the annual levy of assessments on businesses
within the Costa Mesa Tourism & Promotion Council Business Improvement Area are
specified in the referenced annual report and Exhibit B, attached hereto and incorporated
herein by this reference.
Section 4. Method and Basis of Levy. To allow each business owner to estimate
the amount of the assessment to be levied against his or her business, the proposed
method and basis of levying the assessment is set forth in the Costa Mesa Conference &
Visitor Bureau's annual report relative to the Business Improvement Area.
Section 5. Time and Place of Public Hearing. The time and place of the public
hearing on the levy of an annual assessment for Fiscal Year 2018-2019 shall be 7:00
p.m. on June 5, 2018, at the Costa Mesa City Hall, City Council Chambers, 77 Fair Drive,
Costa Mesa, California. At the public hearing set forth above, the testimony of all
interested persons for or against the annual levy of the assessment for the Business
Improvement Area, the extent of the area, or the furnishing of specific types of
improvements or activities will be heard by the City Council.
Resolution No. 18-29 Page 2 of 8
Section 6. Protests. The following rules shall apply to all protests:
(a) A protest may be made orally or in writing by any interested person. Any
protest pertaining to the regularity or sufficiency of the proceedings shall be
in writing and shall clearly set forth the irregularity or defect to which the
objection is made.
(b) Every written protest shall be filed with the City Clerk's Office, Costa Mesa
City Hall, Room 101, 77 Fair Drive, Post Office Box 1200, Costa Mesa,
California 92626-1200, at or before the time fixed for the public hearing as
set forth above.
(c) The City Council may waive any irregularity in the form or content of any
written protest, and at the public hearing, may correct minor defects in the
proceedings.
(d) 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.
A written protest which does not comply with this section shall not be counted
in determining a majority protest.
(e) If written protests are received from the owners of businesses in the
proposed business improvement area which will pay fifty percent (50%) or
more of the assessments to be levied and protests are not withdrawn so as
to reduce the protests to less than the fifty percent (50%), no further
proceedings on the proposal to continue the business improvement area
assessment, as specified by this Resolution, shall be taken by the City
Council for a period of one year from the date of the filing of a majority
protest.
BE IT FURTHER RESOLVED THAT the City Council of the City of Costa Mesa,
California, does hereby approve the annual report by Travel Costa Mesa acting as the
advisory board on the business improvement area (referenced report on file in the City
Clerk's Office), and this Resolution, including all exhibits.
Resolution No. 18-29 Page 3 of 8
PASSED AND ADOPTED this 15t day of May, 2018.
e
Sandra L. Genis, Mayor
ATTEST:
�� I)� I ,I r s
Brenda GreAl,Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
APPROVED S
Thomas Duarte,
TO FORM:
Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 18-29 and was duly passed
and adopted by the City Council of the City of Costa Mesa at a regular meeting held on
the 15t day of May, 2018, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: Foley, Righeimer, Stephens, Mansoor, Genis
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 2"d day of May, 2018.
._
•. --1 City Clerk
Resolution No. 18-29 Page 4 of 8
/:I1�Y�e1
The Business Improvement Area ("BIA") benefit zone encompasses the entire City of Costa Mesa
boundaries. It is anticipated that the entire City, including businesses and residents, will benefit
from increased revenues generated by the activities financed by the BlAassessment.
The following businesses will be included in the BIA that is established pursuant to Streets &
Highways Code § 36500 et seq., the businesses commonly known as:
Ayres Country Inn & Suites
Property Address: 325 and 345 Bristol Street, Costa Mesa
Business Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A
Costa Mesa, CA 92626
Property Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A
Costa Mesa, CA 92626
Best Western Plus Newport Mesa Inn
Property Address: 2642 Newport Boulevard, Costa Mesa
Business Owner: James Hsuen
Shang -Pu Lee
2642 Newport Boulevard,
Costa Mesa, CA 92627
Property Owner: James Hsuen
Shang -Pu Lee
2642 Newport Boulevard,
Costa Mesa, CA 92627
Hilton Costa Mesa
Property Address: 3050 Bristol Street, Costa Mesa
Business Owner: Ashford Hospitality Trust
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254
Property Owner: Remington Lodging & Hospitality LP
14185 Dallas Parkway, Suite 1100
Dallas, Texas 75254
Resolution No. 18-29 Page 5 of 8
Crowne Plaza
Property Address:
Business Owner:
Property Owner:
3131 Bristol Street, Costa Mesa
Brighton Management
1901 Main Street, Suite 150
Irvine, CA 92614
3131 Bristol Property UC, LLC
2711 Centerville Road, Suite 400
Wilmington, DE 19808
Holiday Inn Express Hotel & Suites
Property Address:
Business Owner:
Property Owner:
Costa Mesa Marriott
2070 Newport Blvd., Costa Mesa
Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Property Address: 500 Anton Boulevard, Costa Mesa
Business Owner: Marriott International
10400 Fernwood Rd.
Bethesda, MD 20817
Property Owner: Host Hotels & Resorts
6903 Rockledge Dr., Suite 1500
Bethesda, MD 20817
Ramada Inn & Suites Costa Mesa
Property Address: 1680 Superior Ave., Costa Mesa
Business Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.
Costa Mesa, CA 92627
Property Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.
Costa Mesa, CA 92627
Resolution No. 18-29 Page 6 of 8
Residence Inn by Marriott
Property Address: 881 Baker Street, Costa Mesa
Business Owner: Marriott International
10400 Fernwood Rd.
Bethesda, MD 20817
Property Owner: ING Clarion Partners
2650 Cedar Springs Road, Suite 850
Dallas, TX 75201-1491
The Westin South Coast Plaza Hotel
Property Address: 686 Anton Boulevard, Costa Mesa
Business Owner: Host Hotels & Resorts
6903 Rockledge Dr., Suite 1500
Bethesda, JD 20817
Property Owner: CJ Segerstrom & Sons
c/o South Coast Plaza
686 Anton Boulevard
Costa Mesa, CA 92626
Avenue of the Arts Wyndham Hotel
Property Address: 3350 Avenue of the Arts, Costa Mesa
Business Owner:
Property Owner:
BLVD Hotel
Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627
Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627
Property Address: 2430 Newport Blvd, Costa Mesa
Business Owner: Hollywood Corner Inc.
2430 Newport Blvd
Costa Mesa, CA 92627
Property Owner: Shyamal Patel, CA 92782
16609 Honeybee Dr.
Tustin, CA 92682
Resolution No. 18-29 Page 7 of 8
EXHIBIT B
The BIA assessment will be used to fund Travel Costa Mesa ("TCM"). TCM will fund
activities to promote tourism in Costa Mesa and will sponsor related tourist events that
benefit the hotel and motel businesses within the City.
The specific improvements and activities to be funded by this assessment are outlined in
the TCM's 2016-2017 Annual Report.
Revenue
A three percent (3%) levy will be assessed against each of the 11 hotels listed in Exhibit
A, based on the net revenue from the sale of overnight room stays.
Business owners shall pay the assessment to the Costa Mesa City Finance Department
on a monthly basis. A penalty and interest shall be assessed on late payments.
Note: New hotel and motel businesses commenced after the effective date of this
resolution will be exempt from the levy of assessment.
Resolution No. 18-29 Page 8 of 8