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Home My WebLink About2025-12 - Annual Assessment of the BIARESOLUTION N0. 2025-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, CONFIRMING THE ANNUAL REPORT FILED BY TRAVEL COSTA MESA AND LEVYING ANANNUAL ASSESSMENT FOR FISCAL YEAR 2025-2026 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY FIND AND DECLARE AS FOLLOWS: WHEREAS, in adopting the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code sections 36500, etseq.), 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 (I I ) 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 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. 2025-12 Page I of 9 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 2025-2026; and WHEREAS, on May 6, 2025, the City Council adopted Resolution No. 2025-07, a resolution of intention to levy an assessment for Fiscal Year 2025-2026, pursuant to California Streets and Highways Code section 36534; and WHEREAS, the City Council has conducted a public hearing pursuant to California Streetsand Highways Code section 36535; and WHEREAS, the City Council now desires to confirm the annual report as filed by TCM andadopt this Resolution to levy the assessment for the 2025-2026 Fiscal Year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows: Section 1. Annual Report. The City Council hereby confirms the annual report on the Business ImprovementArea as originallyfiled byTravel Costa Mesa in accordancewith CaliforniaStreets and Highways Code section 36535. The report shall be kept on file in the City Clerk's Office. Section 2. Assessment. An annual assessment for the BIA shall be levied pursuant to California Streets and Highways Code sections 36500, et seq. The boundaries of the territory are the 1l motels and hotels listed in Exhibit A. The amount of the annual assessment is three percent (3%) based on the sale of overnight room stays. New hotel and motel businesses commenced affer the effective date of the resolution levying the assessment will be exempt from the levy of assessment pursuant to California Streets and Highways Code section 36531. 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 and Exhibit B, attached hereto, and incorporated herein. Resolution No. 2025-12 Page 2 of 9 Section 4. Reporting and Remitting 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. Resolution No. 2025-12 Page 3 of 9 PASSED AND ADOPTED this 3rd day of June, 2025 '% ',John Stephens, Mayor ATTEST: 2\i"ayearee&""itycierx APPROVED AS TO FORM: ]) '-r(:!!AJ',,, 'rl/.-Ak' (%t,,tlc4'ti) Kimberly h61i Barlow, City Attorney STATEOFCALIFORNIA ) COUNTY' OF ORANGE ) ss CITY OF COSTA MESA ) 1, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2025-'12 and was duly passed and adoptedby the City Council of the City of Costa Mesa at a regular meeting held on the 3rd day of June, 2025, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: BULEY, GAMEROS, MARR, PETTIS, 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 4'h day of June, 2025. :%"da Ae&""ityClerk Resolution No. 2025-12 Page 4 of 9 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. 2025-12 Page 5 of 9 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: Bright Bristol Street LLC 3'l3'l Bristol Street Costa Mesa, CA 92626 Property Owner:Bright Bristol Street LLC 3131 Bristol Street Costa Mesa, CA 92626 Hilton Orange County/Costa Mesa 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. 2025-12 Page 6 of 9 Hampton by Hilton (Formerly Holiday Inn) 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, Is' FloorNorwalk, CT 06851 QC Hotel Costa Mesa (Formerly BLVD Hotel) Property Address: 2430 Newport Boulevard, Costa Mesa Business Owner: SAI KSP Inc. I "1 556 Manchester Way Porter Ranch, CA91326 Property Owner:Sanjay Panchal 11556 Manchester Way Porter Ranch, CA 91326 Resolution No. 2025-12 Page 7 of 9 Ramada Inn & Suites Costa Mesa PropertyAddress: 1680SuperiorAvenue,CostaMesa 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 10400 Fernwood Rd. Bethesda, MD 20817 Property Owner: Legacy Strata 11301 W Olympic Bldv. F121-467 West Los Angeles, CA 90064 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:Secon Properties 3315 Fairview Rd. Costa Mesa, CA 92626 Resolution No. 2025-12 Page 8 of 9 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 after the effective date of this resolution willbe exempt from the levy of assessment. Resolution No. 2025-12 Page 9 of 9