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HomeMy WebLinkAbout98-34 - Intention to levy assessment for 1998-99 for a Business Improvement Area (BIA) for hotels and motels301. RESOLUTION NO. 98-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ON THE INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 1998-99 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: 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 which benefit from those improvements and activities; and WHEREAS, the purpose of the business improvement area proposed by this resolution of intention 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 WHEREAS, the major hotel and motel businesses within the City of Costa Mesa have requested that the City Council commence proceedings under the Parking and Business Improvement Area Law of 1989 to establish a hotel and motel business benefit area within the City of Costa Mesa and levy a special assessment to promote tourism; and 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 WHEREAS, this resolution of intention will commence proceedings under the Parking and Business Improvement Area Law of 1989 to levy an annual assessment for the Costa Mesa Tourism and Promotion Council. SECTION 2. The City Council of the City of Costa Mesa hereby intends to do the following: (a) An annual business assessment for the business improvement area known as the Costa Mesa Tourism and Promotion Council is proposed to be levied pursuant to Streets and Highways Code Sections 36500 et seq. with the boundaries of the territory to be included in the area as set forth in Exhibit A, attached hereto and incorporated herein by this reference. Further, a business improvement area is proposed to be established with the boundaries of the benefit zone within the area as set forth in Exhibit A. (b) An annual report on the business improvement area has been prepared by the Board of the Costa Mesa Tourism and Promotion Council to review the assessment as required by Streets and Highways Code Sections 36533 and 36534 and such report is attached as Exhibit B and incorporated herein by this reference. 302 (c) The type or types of improvements and activities proposed for the annual levy of assessments on businesses within the business improvement area are specified in Exhibit B. Further, the improvements, if any, to be acquired for the proposed business improvement area are specified in Exhibit B. (d) The proposed assessment will be levied annually to pay for all improvements and activities within the business improvement area, except where funds are otherwise available. (e) The proposed method and basis of levying the assessment to allow each business owner to estimate the amount of the assessment to be levied against his or her business is set forth in Exhibit B. (f) New hotel and motel businesses commenced after the effective date of the ordinance levying the annual assessment will be exempt from the levy of assessment as provided in Exhibit B, pursuant to Streets and Highways Code Sections 36531 and 36535. (g) The time and place for the public hearing on the business improvement area and the annual levy of assessments shall be at 6:30 p.m., on May 18, 1998, at the Costa Mesa City Hall, City Council Chambers, 77 Fair Drive, Costa Mesa, California. (h) At the public hearing set forth above, the testimony of all interested persons for or against the annual levy of assessment for the business improvement area, the extent of the area, or the furnishing of specific types of improvements or activities will be heard by the City Council. 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. (i) Every written protest shall be filed with the City Clerk's office, Costa Mesa City Hall, Room 101, 77 Fair Drive, Post Office Box 1200, Costa Mesa, CA 92628-1200, on or before the time fixed for the public hearing as set forth above. 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. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing set forth above. (j) Each written protest shall contain a description of the business in which the person subscribing the protest is sufficiently interested to identify the business and, if a person subscribing is not shown on the official records of the City of Costa Mesa 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 paragraph shall not be counted in determining a majority protest. (k) 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 fifth percent (50%), no further proceedings to create the proposed business improvement area or to levy the proposed assessment, as specified by this resolution of intention, shall be taken by the City Council for a period of one (1) year from the date of the filing of a majority protest. If a majority protest is only against the furnishing of a specified type or types of improvement 303 or activity within the business improvement area, those types of improvements or activities shall be eliminated by the City Council. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Costa Mesa, California, does hereby adopt the annual report on the business improvement area by the Costa Mesa Tourism and Promotion Council, and this resolution of intention as set forth herein, and Exhibits A and B attached hereto and incorporated by this reference. PASSED AND ADOPTED this 4th day of May, 1998. (DA�� 2 './�& Mayor of the City of C a Mesa ATTEST: -r i1 O n Deputy City Jerk of the City of Costa Mesa STATE OF CALIFORNIA ► COUNTY OF ORANGE 1 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. 98-34 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the 4th day of May, 1998, by the following roll call vote: AYES: Monahan, Erickson, Cowan, Somers NOES: None ABSENT: Buffa IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 5th day of May, 1998. h�� !. LU2-D1r-- Deputy City lerk and ex -officio Clerk of the City Cou it of the City of Costa Mesa 304 Exhibit "A" The 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 of the BIA. The following businesses will be included in the business improvement area which is established pursuant to Streets and Highways Code Section 36500 et. Seq., the businesses commonly know as: 1. Residence Inn - Costa Mesa Property Address: 881 Baker St.. Costa Mesa Mailing Address: 881 Baker St., Costa Mesa, CA 92626 Business Owner: Marriott 1 Marriott Way. Washington DC 02258 Property Owner: Marriott Residence Inn Ltd. Partnership (10/21/97) 10400 Fernwood Dr., Bethesda, MD 20817 2. Holiday Inn Property Address: 3 13 1 Bristol St., Costa Mesa Mailing Address: Trabon Consulting 712 Broadway Unit #304, Kansas City. SII 64105 Business Owner: Linquist & Craig Hotels & Resorts 1611 St. Andrews Dr.. Lawrence. KS 66047 Property Owner: Lipsky, Abbott B (01/20/98) c/o California Inn Management Inc. . 1611 Saint Andrews Dr., Lawrence, KS 66047 3. Marriott Suites Costa Mesa Property Address: 500 Anton Blvd., Costa Mesa Mailing Address: 500 Anton Blvd., Costa Mesa, CA 92626 Business Owner: Marriott 1 Marriott Way, Washington DC 20058 Property Owner: Marriott Suites, Ltd. (10/21/97) 1 Marriott Way, Washington DC 20058 Exhibit "A" Resolution No. 98-34 Page 1 of 2 1 1 4. Westin South Coast Plaza Property Address: 686 Anton Blvd., Costa Mesa Mailing Address: 686 Anton Blvd., Costa Mesa, CA 92626 Business Owner: Starwood Resorts & Lodges 2231 E. Camelback Rd., Suite 410, Phoenix, AZ 85016 Property Owner: Secon Properties (10/21/97) c/o South Coast Plaza Hotel 666 Anton Blvd. Costa Mesa, CA 92626 5. Country Side Inn & Suites Property Address: 325 Bristol St., Costa Mesa Mailing Address: 325 Bristol St., Costa Mesa, CA 92626 Business Owner: Donald Ayres III Property Owner: Homes By Ayres (10/21/97) 355 Bristol St. Suite A. Costa Mesa, CA 92626 6. Wyndham Garden Hotel Property Address: 3350 Avenue of the Arts. Costa Mesa Mailing Address: Patriot American Wyndham International 1950 Stemmons Freeway Suite 6001, Dallas, TX 75207 Business Owner: Amgreen Heritage Hotel 31200 Via Colimas Unit 202, Westlake Village. CA 91362 Property Owner: Amgreen Heritage Hotel Partnership LTD (10/21/97) c/o Wyndham Hotels & Resorts 1950 Stemmons Freeway Suite 6001, Dallas, TX 75207 7 DoubleTree Orange County Airport (form. Red Lion Orange County Airport) Property Address: 3050 Bristol St., Costa Mesa Mailing Address: 3050 Bristol St., Costa Mesa. CA 92626 Business Owner DoubleTree Hotels Inc. 3050 Bristol St., Costa Mesa. CA 92626 Property Owner: Red Lion Orange County Partners (01/20/98) 4001 Main St., Vancouver. WA 98663 Exhibit "A" Resolution No. 98-34 Page 2 of 2 305 Attachment I Exhibit "B" Annual Report for Fiscal Years 1997- 1998 and 1998- 1999 submitted by: The Costa Mesa Tourism and Promotion Council Aril 27, 1998 Exhibit "B" Resolution No. 98-34 Annual Report 1 1 April 24, 1998 30'7' The Honorable City Council City of Costa Mesa 77 Fair Drive Costa Mesa, California 92626-6520 Dear Council Members: Thank you for the opportunity to continue with the Costa Mesa Tourism and Promotion Council now in its third year of operation. I submit for your approval the Annual Report of the Costa Mesa Tourism and Promotion Council in accordance with the provisions of the Business Improvement Area (BIA). This past year the Tourism Council has worked effectively with Bozell in establishing a new logo, brochure and advertising campaign. Additionally, the Council has developed a partnership with the South Coast Metro Alliance and a Marketing Committee involving the hotel Marketing Directors to further broaden and add depth to our future marketing program. The seven General Managers in conjunction with the Honorable Gary Monahan, Heather Somers and Allan Roeder, City Manager have met regularly, without compensation, to further the image and economic development of Costa Mesa as a destination. Now in its third year, the Costa Mesa Tourism & Promotion Council continues its original mission by focusing the marketing and media campaigns to audiences that will not only heighten awareness but will also generate business for the hotels. The Costa Mesa Tourism & Promotion Council was originally established to increase the awareness of Costa Mesa as a visitor destination with the goal of increasing hotel occupancy and further contributing to the local economy. The required contents of the Annual Report are detailed in Section 36533 of the Streets and Highway code. The format is as follows: I. Any proposed changes in the boundaries of the Business Improvement Area or in any benefit zones within the area. The Advisory Board recommends that the entire city continue to be included in the benefit zone. Further, the Advisory Board recommends that the number of properties included in the boundaries remain the same. If additional properties wish to participate, they are invited to attend meetings the year before assessment, be in good standing with the City of Costa Mesa and meet certain AAA quality standards. The seven major hotels will continue to be assessed the 1% levy on the sale of hotel overnight quest room stays. II. The improvements and activities to be provided for the Fiscal Year. The Advisory Board recommends that the 1% assessment levy continue to be used to fund similar tourism and promotion activities for the hotels. Page 1 of 6 Exhibit "B" Resolution No. 98-34 Page 1 of 6 UT - ,77 5 IL �'4b During the third year, the Costa Mesa Tourism and Promotion Council focused on generating awareness of Costa Mesa as a destination. The Council has accomplished or is in progress of implementing the following projects and programs: Calendars of Events: A quarterly calendar providing comprehensive information on community activities, arts and cultural events, and hotel promotions. The calendar is sent to more than 150 travel editors across the country, to travel agents, to inquiries generated by our ads (both in the United States and abroad), to our member's hotels, to the Costa Mesa Chamber of Commerce, and to other local venues as requested. New logo: A new logo and tag line have been created and are being incorporated into marketing brochures, advertisements, and collateral. The tag line: "Costa Mesa. The Best of Southern California." New Marketing Materials: A new, four-color, 12 -page brochure and four-color, double -sided "rack card" are being developed and should be ready for distribution by the end of May (brochure) and early June (rack card). The rack card will be placed in hotel information racks to provide a quick overview of Costa Mesa and its amenities, and can also be used in place of the brochure as appropriate. Telephone Inquiries: Since July 1997, 800# Hotline -Answer Network received approximately 1,500 telephone inquiries from across the United States as a result of advertisements and other promotions. Answer Network responds by sending the Costa Mesa calendar and brochure to those callers and also serves as a fulfillment house for reader service cards generated by our magazine/newspaper advertising. The Costa Mesa Tourism & Promotion Council receives a monthly report from Answer Network summarizing the number and source of the inquiries, and will soon begin developing a database for the Costa Mesa Tourism & Promotion Council to use for future mailings. Web Site: The web site (www.costa mesa -ca.com) was launched in October 1997, and has received approximately 147,447 hits. In the coming year, we will investigate opportunities for additional hyperlinks to other related sites, and explore advertising opportunities on other sites with links to our web site. The web site address is included on all of our advertising and promotional materials. Advertising Placements: Fiscal Year 1997-1998 was the first year the Costa Mesa Tourism & Promotion Council developed and implemented an aggressive advertising campaign that has generated more than 2,500 responses to date (from publications with reader service cards). The campaign began in July and will conclude in June, and has included the following publications and venues: Consumer/General Magazines Alaska Airlines America West Airlines California Visitors Guide Page 2 of 6 Exhibit "B" Resolution No. 98-34 Page 2 of 6 1 Conde Nast Traveler Local Arts Mature Outlook Sunset Travel & Leisure Westways Consumer/City Magazines Los Angeles Magazine Phoenix Magazine Portland Living Sacramento Magazine San Diego Magazine San Francisco Magazine Seattle Magazine Travel Your Way/New York Times Trade/Travel Leisure Travel News Senior Travel Tips Travel Weekly Travel Agent (including their Internet Directory) Travel Age Recommend Newspaper Portland Oregonian San Diego Union Tribune San Francisco Examiner & Chronicle Tucson Star Citizen Los Angeles Times Palm Springs Desert Sun Co-op Ad Campaign with the Anaheim Visitor & Convention Bureau Other Media California Visitors Bureau Map "Where" Orange County Map John Wayne Airport Dioramas South Coast Metro PocketBook Holiday Shopping Package: A "VIP Holiday Shopping Package" was created and advertised in November -December in the Los Angeles Times and the Palm Springs Desert Sun, laying a foundation for similar future promotions. This package was created and advertised in the Los Angeles Times and the Palm Springs Desert Sun. Media Coverage: During the Rose Bowl season, KFWB news radio interviewed Allan Roeder about the benefits being derived by Costa Mesa businesses during Page 3 of 6 Exhibit "B" Resolution No. 98-34 Page 3 of 6 310 the Rose Bowl and the Los Angeles Times also quoted Costa Mesa Tourism & Promotion Council members in two Rose Bowl -related stories. Stories on Costa Mesa have also appeared in special Orange County sections of travel trade publications and newspapers. • North American Precis Syndicate (NAPS): NAPS is a service that prepares and distributes stories to suburban newspapers across country. NAPS distributed six Costa Mesa Tourism & Promotion Council stories over the past year and to date, these stories have generated approximately 2,400 articles with a total estimated readership of about 156 million. • California Tourism Medal Awards: Bozell entered the Costa Mesa Tourism and Promotion advertising campaign. • Press Kits and Press Releases: Press releases and press kits highlighting Costa Mesa as a travel destination have been generated on a regular basis. • Partnerships: Partnerships have been implemented with the South Coast Metro Alliance and the Orange County Tourism Council further strengthening the Costa Mesa Tourism and Promotion Council outreach and marketing efforts. • Marketing Committee: A Marketing Committee has been established to provide additional valuable insight and recommendations to the Costa Mesa Tourism & Promotion Council in the development of short and long-term strategic marketing and media plans. The committee consists of sales/marketing directors from the member hotels, as well as representatives from BSMG Worldwide and the Costa Mesa Tourism & Promotion Council. 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 details the actual revenues and excesses for 1996-1997 and 1997-1998 and the proposed fiscal year 1998-1999. REVENUES YEAR 2 96197 YEAR 3 97/98 YEAR 4 98/99 ACTUAL ACTUAL/PROJECTED PROJECTED July 32,212 41,978 43,237 August 36,472 40,124 41,328 September 38,332 39,462 40,646 October 33,360 41,096 42,329 November 35,809 42,593 43,871 Page 4 of 6 Exhibit "B" Resolution No. 98-34 Page 4 of 6 1 1 1 311 December 30,673 25,219 25,976 January 37,500 51,983 53,542 February 41,078 42,138 43,402 March 43,098 35,175 36,230 April 39,121 29,450 30,334 May 37,513 31,450 32,394 June 31,914 36,750 37,853 TOTAL 489,758 604,573 527,620 EXPENSES YEAR 2 96/97 YEAR 3 97/98 YEAR 4 ACTUAL ACTUAUPROJECTED 98/99 Media Campaign 228,115 283,894 280,000 Media Relations 55,994 52,742 57,000 Brochures 39,382 13,482 60,000 Trade Show 32,230 20,000 Administration/General 18,519 19,782 45,000 Expenses Special Promotions 65,600 TOTAL 344,150 369,900 527,600 Year End Surplus 145,608 234,673 Budget Expense Projections for fiscal 1998-1999 • Media Campaign The campaign focuses on enticing the leisure traveler to Costa Mesa for weekends, holidays and during the summer months. The media campaign will continue to position Costa Mesa as Southern California's Best reinforcing this as a desirable destination that offers a variety of amenities, easy accessibility and value as well as providing measurable results through either telephone and business reply card inquiries and/or actual business booked at the hotels. This includes expenses associated with advertising production, buying space in publications, agency retainer, Internet site and other costs associated with an advertising campaign. Estimated Expense $280,000 Page 5 of 6 Exhibit "B" Resolution No. 98-34 Page 5 of 6 31Lu Media Relations & Familiarization Trips We will continue to develop awareness and reinforce the Costa Mesa destination through press releases to regional and national publications, familiarization trips for travel press and group tour operators. Estimated Expense $57.000 Marketing Materials and Brochures Marketing materials including brochures, rack cards and other marketing materials will be created and distributed to inquiries resulting from advertising and special promotions, travel agents, tour operators, conference attendees, and meeting planners. Estimated Expense $60.000 Trade Show Booth and Representation We will create a trade show booth and promotional items for participation in major Trade Shows. Estimated Expense $20.000 Administrative & General Expenses Answer Network will continue to answer the 800# and act as a distribution facility. This category includes accounting fees, postage, insurance, consultant and administrative expenses. Estimated Expense $45.000 Special Promotions Special promotions include marketing efforts specifically directed to attracting Rose Bowl Alumni Associations and/or Athletic Directors business, Summer and Holiday Packages in addition to special promotions focusing in conjunction with the Orange County Theatre District. Estimated Expense $65,000 The Advisory Board supports and enthusiastically works as a team toward the success of the Costa Mesa Tourism and Promotion Council. Advisory members Gary Monahan and Heather Somers 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 the Costa Mesa Tourism and Promotion Council. Bann General Manager, Doubletree Hotel President,Costa Mesa Tourism and Promotion Council Page 6 of 6 it Exhibit "B" Resolution No. 98-34 Page 6 of 6