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Resolution No. 2026-XX BIA Intent - 5/5/2026Resolution No. 2026-xx Page 1 of 7 RESOLUTION NO. 2026-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2026- 27 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 RESOLVE 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 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 WHEREAS, the City desires to levy and collect a three percent (3%) assessment within the BIA for Fiscal Year 2026-2027; 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 2026-27 Fiscal Year; and Attachment 3 Resolution No. 2026-xx Page 2 of 7 WHEREAS, the Agenda Report and its attachments for the May 5, 2026 City Council meeting filed with the City Clerk set forth a detailed description of the activities to be provided in the 2026-27 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. 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 2026-27 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. 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. Section 4. Reporting and Remitting to the City of Costa Mesa Finance Department. Each hotel/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 (10%) 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 6. Time and Place of Public Hearing. The time and place of the public hearing on the levy of an annual assessment for Fiscal Year 2026-27 shall be 7:00 p.m. on June 2, 2026. 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 7. Protests. Consistent with California Streets & Highways Code §§ 36524 and 36526, the following rules shall apply to all protests: Resolution No. 2026-xx Page 3 of 7 (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. (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 fifty 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 8. 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 2, 2026 public hearing. Resolution No. 2026-xx Page 4 of 7 PASSED AND ADOPTED this _____ day of May, 2026. John Stephens, Mayor ATTEST: APPROVED AS TO FORM: Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) 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. 2026-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the _____ day of May, 2026, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this ___ day of May, 2026. Brenda Green, City Clerk Resolution No. 2026-xx Page 5 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-xx Page 6 of 7 Crowne Plaza Property Address: 3131 Bristol Street Costa Mesa, CA 92626 Business Owner: Bright Bristol Street, LLC 3131 Bristol Street Costa Mesa, CA 92626 Property Owner: Bright Bristol Street LLC 3131 Bristol Street Costa Mesa, CA 92626 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, 1st Floor Norwalk, CT 06851 Resolution No. 2026-xx Page 7 of 7 OC 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 Property Address: 1680 Superior Avenue Costa Mesa, CA 92627 Business Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Avenue Costa Mesa, CA 92627 Property Owner: 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: Marriott International 10400 Fernwood Road. Bethesda, MD 20817 Property Owner: 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: Host Hotels & Resorts 6903 Rockledge Drive, Suite 1500 Bethesda, MD 20817 Property Owner: Secon Properties 3315 Fairview Road Costa Mesa, CA 92626 Resolution No. 2026-xx Page 8 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 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.