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HomeMy WebLinkAbout2025-07 - BIA Resolution of IntentRESOLUTION NO. 2025-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2025-26 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON THE PROPOSED ANNUAL ASSESSMENT THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RE SOL VE AS FOLLOWS: WHEREAS, in adopting the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code sections 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 ("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 motelssubject to the assessment to serve as t he 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 eachyear 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 overnightroom stays; and Resolution No. 2025-07 Page 1 of 10 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 WHEREAS, the City desires to levy and collect a three percent (3%) assessment within the BIA for Fiscal Year 2024-2025; and WHEREAS, this Resolution of Intention will commence proceedings under the Parking and Business Improvement Area Law of 1989 to levy the annual assessment of the Costa Mesa Tourism & Promotion Business Improvement Area for the 2025-26 Fiscal Year; and WHEREAS, the Agenda Report and its attachments for the May 6, 2025 City Council meeting filed with the City Clerk set forth a detailed description of the activities to be provided in the 2025-26 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 asfollows: Section 1. Intention; Assessment. The City Council hereby declares its intention to levy and collect assessments in the Costa Mesa Tourism & Promotion Business Improvement Area for Fiscal Year 2025-26 pursuant to California Streets & Highways Code §§ 36500 et seq. The boundaries of the Costa Mesa Tourism & Promotion Business Improvement Area 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 California Streets & Highways Code § 36531. Section 2. Annual Report. An annual report on the Costa Mesa Tourism & Promotion Business Improvement Area has been prepared by TCM, acting as the advisory board, as required by California Streets & Highways Code §§ 36533 and 36534. Said report is on file in the City Clerk's Office. Resolution No. 2025-07 Page 2 of 10 Section 3. Types of Activities to Be Funded. The 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 andExhibit B, attached hereto and incorporated herein. Section 4. Reportinq and Remittinq to the City of Costa Mesa Finance Department. Eachhotel/motel owner shall separate the Business Improvement Assessment from the Transient Occupancy Tax on guest billing statements. The specific term "Business Improvement Assessment" shall be included on the billing to identify the assessment amount. The hotel/motel owner shall collect and subsequently remit the assessment to the Costa Mesa Finance Department at the same time and manner as the Transient Occupancy Tax. A ten percent (lO%)penalty and half percent (0.5%) interest will be assessed on late remittances. Section 5. 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 method and basis of levying the assessment are set forth in the annual report relative to the Business Improvement Area, Ordinance No. 95-9, and Exhibit B. 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 2025-26 shall be 7:00 p.m. on June 3, 2025. 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, and/or the furnishing of specific types of improvements or activities will be heard by the City Council. Section 6. Protests. Consistent with California Streets & Highways Code §§ 36524 and 36525, 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, 77 Fair Drive, Room 101, Costa Mesa, California 92626, at or before the time fixed for the public hearing as set forth above. Resolution No. 2025-07 Page 3 of 10 (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) A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. (e) 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. (f) 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 fifiy percent (50%), no further proceedings on the proposal to continue to levy 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 finding of a majority protest. (g) If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the Business Improvement Area, those types of improvements or activities shall be eliminated. Section 7. Publication. The City Clerk shall cause this Resolution of Intention to be published once in a newspaper of general circulation in the City at least seven (7) days before the June 4, 2025 public hearing. Resolution No. 2025-07 Page 4 of 10 PASSED AND ADOPTED this 6fh day of May, 2025. Stephens, Mayor ATTEST:APPROVED AS TO FORM: '\W'\'a?n,(k""ycierx Krmberly M STATE OF CALIFORNIA ) COUNTY' OF ORANGE ) ss CITYOFCOSTAMESA ) 1, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that theabove and foregoing is the original of Resolution No. 2025-07 and was duly passed and adoptedby the City Council of the City of Costa Mesa at a regular meeting held on the 6fh day of May, 2025, by the following roll call vote, to wit: AYES:COUNCIL MEMBERS: BULEY, GAMEROS, MARR, PEnlS, REYNOLDS, CHAVEZ, AND STEPHENS. 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 7'h day of May, 2025. Resolution No. 2025-07 Page 5 of 10 EXHIBIT A The Business Improvement Area ("BIA") benefit zone encompasses the entire City of Costa Mesaboundaries. It is anticipated that the entire City, including businesses and residents, will benefit from increased revenues generated by the activities financed by the BIA assessment. The following businesses will be included in the BIA that is established pursuant to California Streets and Highways Code sections 36500, et seq., the businesses commonly known as: Avenue of the Arts, A Tribute Portfolio Hotel Property Address: 3350 Avenue of the Arts, Costa Mesa Business Owner: Rosanna Inc. 3350 Avenue of the ArtsCosta Mesa, CA 92627 Property Owner:Rosanna Inc. 3350 Avenue of the ArtsCosta Mesa, CA 92627 Ayres Country Inn & Suites Property Address: 325 Bristol Street, Costa Mesa Business Owner: Newport Country Inn & Suites, Inc. 355 Bristol Street, Suite ACosta Mesa, CA 92626 Property Owner:Newport Country Inn & Suites, Inc. 355 Bristol Street, Suite ACosta Mesa, CA 92626 Resolution No. 2025-07 Page 6 of 10 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: Crowne Plaza James Hsuen Shang-Pu Lee 2642 Newport Boulevard,Costa Mesa, CA 92627 PropertyAddress: 3131 Bristol Street, Costa Mesa Business Owner: Brighton Management 20342 SW Acacia St. Newport Beach, CA 92660 Property Owner: Hilton Bright Bristol Street LLC 3131 Bristol Street Costa Mesa, CA 92626 Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Ashford TRS CM LLC 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Property Owner: Remington Lodging & Hospitality LP 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Resolution No. 2025-07 Page 7 of 10 Holiday Inn Express Hotel & Suites Property Address: 2070 Newport Boulevard, Costa Mesa Business Owner: Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Property Owner:Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Costa Mesa Marriott Property Address: 500 Anton Boulevard, Costa Mesa Business Owner: Starwood Capital Group 591 West Putnam AvenueGreenwich, CT 06830 Property Owner:HEI Hotels & Resorts 101 Merritt 7 Corporate Park, 1s' FloorNorwalk, CT 06851 QC Hotel Costa Mesa (Formerly BLVD Hotel) Property Address: 2430 Newport Boulevard, Costa Mesa Business Owner: Sai Hospitality Services, LLC 11556 Manchester Way Porter Ranch, CA91326 Property Owner:Sanjay Panchal 11556 Manchester Way Porter Ranch, CA91326 Resolution No. 2025-07 Page 8 of 10 Ramada Inn & Suites Costa Mesa Property Address: 1680 Superior Avenue, 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 Residence Inn by Marriott Property Address: 881 Baker Street, Costa Mesa Business Owner: Marriott International "l 0400 Fernwood Rd. Bethesda, MD 20817 Property Owner: BRE Select Hotels and Resorts 6201 15thAvenue Brooklyn, NY 11219 The Westin South Coast Plaza Hotel Property Address: 686 Anton Boulevard, Costa Mesa Business Owner: Host Hotels & Resorts 6903 Rockledge Dr., Suite 1500 Bethesda, MD 20817 Property Owner:CJ Segerstrom & Sons c/o South Coast Plaza 686 Anton Boulevard Costa Mesa, CA 92626 Resolution No. 2025-07 Page 9 of 10 EXHIBIT B The BIA assessment will be used to fund Travel Costa Mesa ("TCM"). TCM will fund activities topromote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City. Revenue A three percent (3%) levy will be assessed against each of the 11 hotels listed in Exhibit A, basedon the net revenue from the sale of overnight room stays. Business owners shall pay the assessment to the Costa Mesa City Finance Department on amonthly basis. A penalty and interest shall be assessed on late payments. Note: New hotel and motel businesses commenced affer the effective date of this resolution willbe exempt from the levy of assessment. Resolution No. 2025-07 Page 10 of 10