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HomeMy WebLinkAbout99-47 - Levying an Annual Assessment for Fiscal Year 1999-2000 for a Business Improvement Area for City of Costa Mesa395 RESOLUTION NO. 99-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 1999-2000 FOR A BUSINESS IMPROVEMENT AREA FOR CITY OF COSTA MESA HOTELS AND MOTELS. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Costa Mesa hereby finds and declares as follows: A. WHEREAS, the California Legislature, in adopting the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code Sections 36500 et seq.), found that cities are authorized to levy assessments on businesses in order to promote economic revitalization and tourism, create jobs, and attract new businesses, and prevent erosion of business districts; and B. WHEREAS, the California Legislature found that cities are authorized to levy assessments on businesses which benefit from those improvements and activities; and C. WHEREAS, the purpose of the business improvement area is to fund activities to promote tourism and related tourist events which benefit the hotel and motel businesses within the City of Costa Mesa; and D. WHEREAS, the major hotel and motel businesses within the City of Costa Mesa have requested the City Council to continue the hotel and motel business benefit area in the City and to levy a special assessment to promote tourism; and E WHEREAS, on July 5, 1995, by Ordinance No. 95-9, the City Council adopted a business improvement area, known as the Costa Mesa Tourism and Promotion Council; and F. WHEREAS, on June 7, 1999, the City Council adopted Resolution No. 99-37 entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ON THE INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 1999-2000 FOR A BUSINESS IMPROVEMENT AREA FOR CITY OF COSTA MESA HOTELS AND MOTELS"; and G. WHEREAS, on July 6, 1999, in the Council Chambers of City Hall, 77 Fair Drive, Costa Mesa, California, a public hearing was held concerning the annual assessment for the business improvement area; and H. WHEREAS, at said hearing, the City Council heard testimony from the hotel and motel owners on the assessment and no protests of the proposed assessment were filed or presented; and I. WHEREAS, the annual assessment for the business improvement area pursuant to Streets and Highways Code Sections 36500 et seq. has the boundaries of the area and the boundaries of the benefit zone within the same area as set forth in Ordinance 95-9 and Exhibit "A", attached hereto and incorporated herein by this reference; and J. WHEREAS, on June 7, 1999, the City Council of the City of Costa Mesa approved the report of the Costa Mesa Tourism and Promotion Council and such report, attached hereto as Exhibit "B" and incorporated herein by this reference, has been considered at the public hearing before this resolution was adopted. SECTION 2. The City Council of the City of Costa Mesa does hereby further find and declare as follows: (a) The Costa Mesa Tourism & Promotion Council, business improvement area, is subject to any amendments to the Parking and Business Improvement Area Law of 1989; (b) The type or types of improvements and activities to be funded by the levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council, business improvement area, are specified in Exhibits "A" and "B" and the improvements to be acquired for the business improvement area are specified in Exhibits "A" and "B"; (c) The Costa Mesa Tourism & Promotion Council, business improvement area, assessment shall be levied for one year to pay for all improvements and activities within the business improvement area as specified by this resolution, except where funds are otherwise available; (d) The method and basis of levying the Costa Mesa Tourism & Promotion Council, business improvement area assessment are set forth in Exhibits "A" and "B"; and (e) New hotel and motel businesses within the business improvement area and commenced after the effective date of this resolution will be exempt from the levy of assessment as provided in Exhibit "A" and "B"; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Costa Mesa, California, by this resolution, does hereby levy an annual assessment on businesses within the business improvement area with the name, "Costa Mesa Tourism & Promotion Council", as set forth in Exhibits "A" and "B". PASSED AND ADOPTED this 6"' day of July, 1999. Mayor o the ity of Costa Mesa ATTEST: Deputy City Cl t k of the City of Costa Mesa F� STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Resolution No. 99-47 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the 60' day of July, 1999, by the following roll call vote: AYES: Monahan, Cowan, Erickson, Somers, Dixon NOES: None ABSENT: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 7"' day of July, 1999. Deputy City Jerk and ex -officio Clerk of the City Co cil of the City of Costa Mesa 1 n J 39'7 EXHIBIT "A" The BIA benefit zone encompasses the entire City of Costa Mesa. It is anticipated that both businesses and residents will benefit from the increased revenues generated by the BIA activities. The following businesses commonly known as will be included in the BIA which is established pursuant to the Streets and Highways Code Section 36500 et. Seq.: 1. Countryside Inn and Suites Property Address: 325 and 345 Bristol Street, Costa Mesa Business Owners: Bruce Ayers 1817 Westminster Avenue Newport Beach, CA 92660 Donald Ayers Jr. 506 Vio Lido Nord Newport Beach, CA 92658 Property Owner: Homes by Ayers 355 Bristol Street, Suite A Costa Mesa, CA 92626 2. Doubletree Hotel Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Promise Hotel Corporation 755 Crossover Lane Memphis, Tennessee 38117 3. Holiday Inn Property Address: 3131 Bristol Street, Costa Mesa Business Owner: Linquist and Craig Hotels Property Owner: Abbot B. Lipsky c/o California Inn Management, Inc. P.O. Box 688 Lawrence, Kansas 66044 Ll Exhibit "A" Resolution No. 99-47 Page 1 of 2 1 1 4. ","arriott Suites Property Address: Business Owner: Property Owner 500 Anton Boulevard J.W. Marriott Jr. Marriott Suites, Ltd. 1 Marriott Way Washington, DC 20058 5. Residence Inn - Costa Mesa Property Address: 881 Baker Street, Costa Mesa Business Owner: Residence Inn by Marriott 1 Marriott Way Washington, DC 02258 Property Owner: Marriott Residence Inn Ltd., Partnership 10400 Fernwood Road Bethseda, Maryland 20817 6. Westin South Coast Plaza Property Address: 668 Anton Boulevard, Costa Mesa Business Owner: South Coast Westin Property Owner: Secon Properties c/o South Coast Plaza Hotel 668 Anton Boulevard Costa Mesa, California 92626 7. Wyndham Garden Hotel Property Address: 3350 Avenue of the Arts Business Owner: Amgreen Heritage Hotel Partners Ltd. 31200 Via Colimas, Suite 202 Westlake Village, California Exhibit "A" Resolution No. 99-47 Page 2 of 2 4=4 ATTACHMENT B Submitted ay.- The Costa Meso Tourism & Promotion Council Mov 14. 1000 Exhibit "B" Resolution No. 99-47 1 1 401 (I)Sta mesa 1 11(• I)1("It t )I 11 111.1 Mav 24, 1999 City of Costa Mesa 77 Pair Drive Costa Mesa, California 92627-6520 Dear Council Members: (hank you li,r the opportunity to continue with the Costa Mcsa I ()urisni Council now in its li,urth year oI'operatloll. We submit ti,r your approval the Annual Report ul'lhe Costa Mesa forn-isnl Council in accordance wfill the provisions ofthe Business Improvement Area (BBA). This past year the 1•ourisnl Council has \\orked effectively with Diane Pritchett and Dan P111111.111, N11111a11 X: Associates (previously with lioicll). Additionally, the Council has developed a partnership with the South Coast Metro Alliance and the Marketing Committee involving the hotel Marketing Directors to Curther broaden and add depth to our marketing program. The seven General Managers in conjunction with Mayor Gary Monahan and Allan Roeder, City Manager have met regularly, without compensation, to lurlher the image and economic development of' Costa Mesa as a destination. Now in its li)urtll year, the Costa Mesa •tourism Council continues its original mission by f6cusing the marketing and media campaigns to audiences that will generate hLISineSS fOr the hotels specifically during the sunlnler, weekends and holidays. I he Costa Mesa 'I ourisnl Council was established to increase awareness of Costa Mesa as a visitor (tcstination with the goal of increasing hotel occupancy and further contributing to the local econonly. 'fax revetn es generated for the City of'Costa Mesa by all of'the motels and hotels January - December 1998 totaled $3,949.836.00. The rellull'Cd contents of the AllnUal Report are detailed in Section 36533 of the Streets and 1 lighway Code. The formal is as fi)Ilo\ys: • 21ny proposed changes in the boundaries of the Business Improvement Arra or in I henefit zones within the arca. The Advisory Board recommends that the entire city continue to he included in the henefil zone. Further, the Advisory Board reconinlcnds that the number of'properties included in the boundaries remain the same. 1 f additional properties wish to participate, Page I of, 9 l o,,ia Mt -,;a F utrnsm +, Pmnu.tu,n ('i,unctl PO 11i)x 'W71, ( osta Mesa. (A 926,111-50, 1 Roo -199-5499 sa-ca.com 1 Exhibit "B" Resolution No. 99-47 Page 1 of 9 402 -000 Costa Mesh lir 13rA (11 titullln�rn (�Illlt�rlli,l. they are invited to attend meetings the year before assessment, be in good standing with the ON of Costa Mesa and meet certain AAA quality standards. The seven major hotels Will continue to be assessed the I"o levy on the sale of'hotel overnight guest room stays. • The improvements and activities to he provided for the Fiscal Year. The Advisory Board reconllllcnds that the I `/, assessment levy continue to be used to field similar tourism activities for the hotels. During the fourth year, the Costa Mesa Tourism Council foCUSed on generating business for the hotels while increasing awareness of Costa Ntcsa as a leisure travel destination. The Council has accomplished or is in progress of implementing tile following projects and programs: Marketing; Materials The tour -color, l2 -page brochure and four-color double -sided "rack card" were distributed to travel writers, hotels, the City of Costa Mesa, Los Angeles Times Travel Show and meetings/conventions booked in the hotels. Calendar of Events A quarterly calendar providing comprehensive information on community activities, arts, cultural events, and hotel promotions. The calendar was sent to more than 150 travel editors across the countrv, travel agents, to inquiries generated by advertising, Council hotels, Costa Mesa Chamber of Conlnlcrce and to other local venues as requested. Nveh Site The web site (www.costanlesa-ca.com) launched in October 1997. We continue to explore Opportunities for additional hyper links to other related sites. The web site address is included on all advertising and marketing materials. [)urine the period ,Ianuary 1999 thru April 1999, the web site recorded 293,500 hits and 12,865 "click through" on site visits. Over a twelve-month period, this averages to approximately 73,000 lilts monthly, with an average of -3,200 "click through." The site has been modified from time to time to provide additional emphasis on special activities and promotions, such as "Beal the I Teat" and "Shop Til You Drop. - The Tourism Council has advertised on the Los Angeles Thiles CalendarLive Internet site since November 1998. 'File results of this effort have been very positive. In the past two months, for example, there was a total ol' more than 172,000 impressions created and more than 420 people viewing the Costa Mcsa TOLL 5111 Council .vcb pages. Page 2 of 9 ( osta ,`lesa Tourism fr Promotion Council PO, Box 50' I. Costa \Aesa, l A 9'628-5071 Exhibit "B" Resolution No. 99-47 Page 2of9 800-399-5499 vv��,ivcostamesa-ca.com 1 1 1 Costa Mesa 1-11c N-11 (,Ififc)rnhl. Logo The new logo and tag line ("Costa Mesa. The Best Of Southern California.") have been incorporated into marketing brochures, advertisements, promotional items and other collateral materials. "Telephone/Business Reply Inquiries The 8008 1 Iodine -Answer Network received more than 1600 telephone inquiries (July 1998 lhru April 1999) as a result of advertisements and other promotions. Answer Network responds to all telephone inquiries followed by sending a cover letter, brochure and calendar of events, In addition to serving as a ILIIflllmenl house for reader service cards generated by magazine and newspaper advertising. Business Reply Inquiries from advertising in Sunset, Travel Weekly, Westways, Mature Outlook. Los 'times Magazine, Los Angeles Times Vacation bodging, Conde Nast and California Travel publications totaled more than 1 1.850 inquiries. All past and current Inquiries are Il(riy Input into it database that enables the hotels and the 'tourism Council to develop and implement future direct mail promotions to targeted audiences. Advertising During Fiscal Year 1998-1999 the "Tourism Council implemented an aggressive advertising campaign targeting markets (Los Angeles, Phoenix/Tucson, Palm Springs, Las Vegas and San Francisco) that could potentially generate weekend, summer and holiday room business. The campaign positions Costa Mesa as "The Best Of Southern California," reinforcing Costa Mesa as a highly desirable location offering a variety of amenities. The advertising campaign uses one color and four color ads with the tagline "Halfway Between the Tides and the Rides," further reinforcing Costa Mesa's proximity to Southern California's pristine beaches and the central location to major attractions such as Disneyland, Knott's Berry Farm and Legoland. Advertising continues lel provide measurable results through telephone falls, business reply cards, and business hooked at the hotels. Cousumer/General Magazines America West Airlines Inflight Magazine California Visitor Guide Conde Nast Traveler Sunset Travel & Leisure Page 3 of, 1) Costa Mrsa Tourism t+ Promotion COMICIt PO Box S07I. Costa (A 9_1628-',o- I 800-599-549U 1 Exhibit "B" Resolution No. 99-47 Page 3 of 9 M� • ' f Cost-Imesc-I 1 11c I))r-;l ( )I �Otd c? II 111,1, Consumer/City Magazines Los Angeles Magazine Phoenix Magazine South Coast Metro Magazine Travel/"Trade Magazines Leisure Travel News Corporate/Travel Magazines Meetings in the West Orange County Business Journal Newspapers Los Angeles Times Travel Section North County Times San Francisco Chronicle Phoenix Republic Gazette Palm Springs Desert Sun Las Vegas Review Journal Tucson Star Citizen Radio KABC ("Beat the I Icat" St►n►n►er Campaign) Other Media California Visitors Bureau Map ..%Vllcre" Orange County Map South Coast Metro PockelBook Anaheim/Orange County Visitors Guide Public Relations Press releases and press kits highlighting Costa Mesa as a leisure travel destination has been generated on a regular basis. Stories on Costa Mesa have been printed in several magazines and newspapers. Page 4 of t) Costa Mesa T Ounsm t, h emotion Councit Ro Box 507 I, Costa Mesa, CA 92618-ti0' 1 Exhibit "B" Resolution No. 99-47 Page 4 of 9 800-399-5499 vvwwcostamesa-ca.com 1 1 CostiMesa I Ilt� Bt��1 l )I �t�ulllt�rn (�,rlilt,rl�i,l. "Beat the Heat Promotion" (May -September) 'The "Beat the heat" summer campaign was targeted to potential travelers from Phoenix, "Tucson, Palm Springs, Las Vegas and Los Angeles via airline and travel magazines as well as Sunday newspaper travel sections. 60 second radio spots on KAIW radio complemented the print campaign. "Shop Til You Drop" Iloliday Promotion This holiday promotion was designed to encourage overnight stays and increase holiday shopping. The promotion included a complimentary, holiday gift filled with shopping and dinning offers and was advertised in Sunset Magazine, Los Angeles Magazine, Los Angeles Tinges, Palm Springs Dcscrt Still and the Sall Francisco Chronicle. The promotion was also advertised through American Express cardholders via the Cardholder Statement Insert reaching more than 500,000 cardholders in Los Angeles, San Francisco and San Diego. A study developed by American Express indicates that (waiting 1,61-1111 il). UPG Sports The Costa Mesa Tourism Council is participating as a sponsor (two year commitment) with UPG Sports Tournaments held at venues in Irvine and Costa Mesa from May through July 1999. All seven Tourism Council hotels offer special UPG rates and room blocks over this time period. The economic forecast by UPG projects that these tournaments will generate approximately $777,000 in revenues. Direct Mail Program A direct mail program has been implemented during the summer months utilizing the four-color '`I lalfway Between the Tide and the Rides" act and reproduced as a postcard. "Total quantity 20,000. Mailings of'2,500-5,000 will be sent during the summer with a variety of special summer and "Beat the I feat" hotel rates. Trade Show The Tourism Council now has a (-foot table top booth for use at trade shows. The Los Angeles Times "Travel Show April 23-25, 1999 was the first trade show for the Tourism Council and provided exposure to travel agents as well as consumers in Los Angeles. Awards ISi/IAI (I lospitality Sales & Marketing Association International) awarded a Silver and Bronze Award to two advertising campaigils. ()lie winning ad, headlined "Costa Mesa. Page 5 of 9 Costa Nlesa Tourism t* Promotion Council I'O Rox ',07 I. Costa .Me,,a, l A 9_1628-W71 800-399-5499 wwvw.costamesa-ca.corrc 1 Exhibit "B" Resolution No. 99-47 Page 5 of 9 405 -000 Costa _Mesa I IC Ilctit OI tic )ut l wrn ( "111 )i111d. Home of the Performing Arts Center, great shopping, and, hopefully, little naked gold guys," was developed when the Academy of Motion Picture Arts and Sciences was considering moving the Annual Academy Awards show from Los Angeles Music Center to another location. The other winning campaign Icatures a series ofads with headlines like "I lalfway Between the Mouse and the Flephants" and "I lallway Between the Rides and the 'bides." I his campaign focused on the city's Ideal location IOr a vacation to Southern California. Partnerships Partnerships have been strengthened with Orange County Tourism Council and Orange County 'tourism Consortium in addition to working cooperatively with Newport Beach Visitor and Convention Bureau and 1 luntington Beach Visitor Bureau. Marketing Committee The Marketing Committee meets monthly and includes the sales and marketing directors in addition to representatives from the Orange County Performing Arts Center, South Coast Repertory, South Coast Plaza, Costa Mesa Fair & Exposition Center and Metro Pointe. This committee provides recommendations and guidance in the development of short and long-term strategic marketing and advertising programs as well as working together on special promotions, events and packages. • An Estimate of the cost of providing the activities for the fiscal year. The estimated amount of the assessment to be levied against the businesses for the fiscal year. The amount of surplus or deficit or revenue carried from the previous fiscal year. The Advisory Board has prepared the following Financial Summary detailing the actual revenues and excesses for 1998/99 and proposed fiscal year 1999/2000. Revenues Projected YR4 actual VR4 Projected VR5 98/99 98/99 99/2000 Be -inning Bal. $178,332 $178,332 $1 12,963 July 41,978 36,530 36,530 August 40,125 52,373 52,530 September 39,462 32,721 32,721 October 41,096 49,263 49,263 November 42,593 47,637 47,637 Page 6 of 9 Costa 'Icsa Tourism t+ Promotion Council Pct Box So, I. Costa Mes,i. l A 92628-5071 800-599-5499 wwiv costarnnsa-ca.com 1 Exhibit "B" Resolution No. 99-47 Page 6 of 9 Costa _M eScri Iw 11c"I l 11 tituill)t rn (,tlilt�rni,t. December 34,390 32,1 1 1 34,500 January 42,812 39,653 39,832 February 42,138 36,832 36,832 March 46,664 179 46,664 April 36,667 35,000 May 45,429 3,443 42,000 June 36.750 67,632 37,000 Interest Income 2,520 1,034 2,000 Total Revenue $670,956 $506,486 $605,472 Originally revenues for 1998/99 erre projected to b.� O/o higher than tht-; previous year. Due to the construction in Anahcitn, the construction of the Anaheim Convention Center and the new Disneyland park, the Tourism Council revised those revenue projections to remain the same as the previous year. Projected revenues for 1999/2000 may be affected by the increase number of hotel rooms in Orange County, especially extended stay hotels, and the continued construction in Anaheim. We hope to counter this by continuing to build increased awareness through advertising and thus maintaining our share ofthe visitor market. Budget Expense Projections for fiscal 1999/2000 Expenses Budgeted Actual Projected Y115 Advertising $438,549 $304,956 $310,000 Media Relations 64,200 45,449 64,200 `Brochures/Promo 19,983 179 74,000 Items Trade Show 6,000 3,443 10,000 Admin/General 87,761 67,632 73,000 Special Promotions 22,000 10,929 45,000 Total Expenses $616,493 $432,588 $576,200 *Promotional items were ordered in May 1999 with projected expense $18,813.86. Costa Mesa Tourism t+ Promotion Council 1 Page 7 of 9 N) ROX 50- I. l Osla Mc%a. CA 926 28 -SO-, l Exhibit "B" Resolution No. 99-47 Page 7 of 9 800-399-5499 40'7 • Ct)stamesa. I11c N"'I <)I �tnlll�t'rlr ('111k)rni,l. • Advertising Campaign The advertising campaign continues to aggressively focus on generating room business for the hotels for weekends, summer ("Ilea( the I leat" campaign) and holidays ("Shop Like The Dickens" campaign) while reinforcing Costa Mesa as a leisure travel destination with easy accessibility that is close to the coast and major attractions. This expense includes design, production, buying space in publications, and other expenses associated with the advertising campaign. Estimated I:xpense $3 10,000 • Media Relations & Familiarization Trips We will continue to develop awareness and reinforce the Costa Mesa destination t1u-ough press releases to regional and national publications, familiarization trips for travel press and group lour operators. I_;stimated Expense $64,200 Marketing Materials Brochures, rack cards, calendar of events, CD Rom, Internet site and other marketing materials will be update reflecting the message "Halfway between the Tides and the Rides" and distributed to inquiries, travel agents, tour operators, conference attendees, trade shows, meeting planners and to corporate locations in Silicon Valley and Phoenix. Estimated Expcnse $74,000 • Promotionalitems Paper Cubcs, CD Rom leather holders, Keys to the City, Polo Shirts and Ceramic Coaster with the logo are available to Further promote the Costa Mesa destination. These items are also available for the use by the Mayor and City Council for visiting dignitaries and as awards. Estimated Expense $12,000 Page K of 9 Costa :Mesa Tourism r> homotu�n Council 110 Box ` O_ 1. Costa ,Mesa. CA 9 2628-',o- 1 800-59V_5499 Exhibit "B" Resolution No. 99-47 Page 8 of 9 1 1 Cos ta Mesa IIIc Rcsl l )I �tn11��t�rn <,tiiltunl,�. Trade Shows A trade show booth has been created and will be used in major trade shows. I :slimated Expense $10.000 Administrative & General E.xhenses Answer Network will continue to answer the 80011 and act as a distribution facility. This category includes accounting Ices, Postage, insurance, u011sultanl and administrative expenses. Estimated Expenses $73,000 • Special Promotions Special prornotions include "A Gift from I Is to You," expenses associated with attracting Rose Bowl College Alumni Associations, l IPG Sports Groups, Summer, Holiday and special "theatre District promotions and packages. Estimated Expenses $45,000 The Advisory Board supports and enthusiastically works as a team toward the success of the Costa Mesa Tourism Council. Advisory members Gary Monahan and Allan Roeder continue to contribute their ideas and perspectives to the overall marketing efforts. We appreciate the opportunity provided by the Costa Mesa City Council to continue the support of -tie Costa Mesa Tourism Council. Respectfully, ' r i %`t- Jam`+ •, . -� Toe Bann, General Manager, Doubletree I lolel President, Costa Mesa Tourism Council Costa 'tesa Tourism U Promotion Council 1 Page 9 of 9 P.0 Box 507 I. Costa Nlesa, CA 92628-5071 Exhibit "B" Resolution No. 99-47 Page 9 of 9 800-59Q-5499 a ' o