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Home My WebLink About2026-24 - BIA Annual AssessmentRESOLUTION N0. 2026-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, CONFIRMING THE ANNUAL REPORT FILED BY TRAVEL COSTA MESA AND LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2026-2027 FOR A BUSINESS IMPROVEMENT AREA COVERING CERT AIN 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, et seq.), the California Legis(ature 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 businessimprovement 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 ten (10) hotels and motels listed in Exhibit A, attached hereto and incorporated herein by this reference, and Crowne Plaza Costa Mesa Orange County are currently subject to the assessment; and WHEREAS, the City Council appointed the general managers of those 1l hotels and motelssubject 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 10 hotel and motel businesses listed in Exhibit A and Crowne Plaza Costa Mesa Orange County; 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 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 2026-2027; and Resolution No. 2026-24 Page I of 7 WHEREAS, on May 5, 2026, the City Council adopted Resolution No. 2026-15, a resolution of intention to levy an assessment for Fiscal Year 2026-2027, pursuant to California Streets and Highways Code section 36534; and WHEREAS, on May 22, 2026, one of the hotels in the BIA, Crowne Plaza Costa Mesa Orange County, provided written notice to the BIA and the City that it wished to withdraw from the BIA; 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 2026-2027 Fiscal Year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa asfollows: S1. Annual Report. The City Council hereby confirms the annual report on the Business Improvement Area as originally filed by Travel Costa Mesa in accordance with 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 10 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 3653'l. 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 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 (1 0%) 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. 2026-24 Page 2 of 7 PASSED AND ADOPTED this 2nd day of June, 2026. John Stephens, Mayor ATTEST: 2"oa'ei%""'itycierb APPROVED AS TO FORM: mberly 2)"r?ttorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITYOFCOSTAMESA ) 1, BRENDA GREEN, City Clerk ofthe City of Costa Mesa, DO HEREBY CERTIFY that theabove and foregoing is the original of Resolution No. 2026-24 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting he(d on the 2nd day of June, 2026, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: BULEY, CHAVEZ, NOES: COUNCIL MEMBERS: NONE. ABSENT: COUNCIL MEMBERS: NONE. GAMEROS, MARR, PETTIS, REYNOLDS, AND STEPHENS. IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 3rd day of June, 2026. Resolution No. 2026-24 Page 3 of 7 EXHIBIT A 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 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, CA 92626 Business Owner:Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92626 Property Owner:Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92626 Ayres Hotel Costa Mesa Property Address: 325 Bristol Street Costa Mesa, CA 92626 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, CA 92627 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 Resolution No. 2026-24 Page 4 of 7 Hilton Property Address:3050 Bristol Street Costa Mesa, CA 92626 Business Owner:Remington Lodging & Hospitality LP 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Property Owner: Ashford TRS CM LLC 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Hampton by Hilton Costa Mesa Newport Beach Property Address: 2070 Newport Boulevard Costa Mesa, CA 92627 Business Owner:Narendra B. Patel 2070 Newport Boulevard Costa Mesa, CA 92627 Property Owner:Narendra B. Patel 2070 Newport Boulevard Costa Mesa, CA 92627 Marriott Property Address:500 Anton Boulevard Costa Mesa, CA 92626 Business Owner:Starwood Capital Group 591 West Putnam Avenue Greenwich, CT 06830 Property Owner:HEI Hotels & Resorts 101 Merritt 7 Corporate Park, Ist Floor Norwalk, CT 06851 QC Hotel Costa Mesa Property Address: 2430 Newport Boulevard Costa Mesa, CA 92627 Business Owner:SAI KSP Inc. 11556 Manchester Way Porter Ranch, CA 91326 Property Owner:Sanjay Panchal 11556 Manchester Way Porter Ranch, CA 91326 Ramada Inn & Suites PropertyAddress: 1680SuperiorAvenue Costa Mesa, CA 92627 Resolution No. 2026-24 Page 5 of 7 Business Owner: Property Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Avenue Costa Mesa, CA 92627 B.D. Inns Inc./Ramada Ltd. 1680 Superior Avenue Costa Mesa, CA 92627 Residence Inn by Marriott Property Address: 881 Baker Street Costa Mesa, CA 92626 Business Owner: Property Owner: Marriott International 10400 Fernwood Road. Bethesda, MD 20817 Legay Strata 11301 West Olympic Boulevard, #121-467 West Los Angeles, CA 90064 The Westin South Coast Plaza Property Address: 686 Anton Boulevard Costa Mesa, CA 92626 Business Owner: Property Owner: Host Hotels & Resorts 6903 Rockledge Drive, Suite 1500 Bethesda, MD 20817 Secon Properties 3315 Fairview Road Costa Mesa, CA 92626 Resolution No. 2026-24 Page 6 of 7 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. Revenue A three percent (3%) levy will be assessed against each of the 10 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. 2026-24 Page 7 of 7