HomeMy WebLinkAbout19-20 - Intention to levy an annual assessment for FY 19-20 for a Business Improvement Area (BIA)RESOLUTION NO. 19-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT
FOR FISCAL YEAR 2019-20 FOR A BUSINESS IMPROVEMENT AREA COVERING
CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND
PLACE FOR A PUBLIC HEARING ON THE PROPOSAL
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
(Streets & Highways Code §§ 36500 et seq.), the California Legislature authorized cities
to levy assessments on businesses in order to promote economic revitalization and
tourism, 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 (the "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; 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
Resolution No. 19-20 Page 1 of 9
assessment, raising the assessment from two percent (2%) to three percent (3%) based
on the sale of overnight room stays; 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 2019-2020
fiscal year; and
WHEREAS, the Agenda Report and its attachments for the May 7, 2019 City
Council meeting filed with the City Clerk set forth a detailed description of the activities to
be provided in the 2019-2020 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. Assessment. An annual assessment for the Costa Mesa Tourism &
Promotion Business Improvement Area is proposed to be levied pursuant to Streets &
Highways Code §§ 36500 et seq. The proposed boundaries of the territory 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 Streets & Highways Code §
36531.
Section 2. Annual Report. An annual report on the Business Improvement Area
has been prepared by TCM, acting as the advisory board, as required by 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 proposed type or types of
activities to be funded by and through the annual levy of assessments on businesses
within the Costa Mesa Tourism & Promotion Business Improvement Area are specified in
the referenced annual report and Exhibit B, attached hereto and incorporated herein by
this reference.
Resolution No. 19-20 Page 2 of 9
Section 4. Method and Basis of Lew. To allow each business owner to estimate
the amount of the assessment to be levied against his or her business, the proposed
method and basis of levying the assessment is set forth in the TCM's annual report
relative to the Business Improvement Area.
Section 5. Time and Place of Public Hearing. The time and place of the public
hearing on the levy of an annual assessment for Fiscal Year 2019-20 shall be 7:00 p.m.
on June 4, 2019, at the Costa Mesa Senior Center, 695 W. 19th Street, Costa Mesa,
California. 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 6. Protests. Consistent with Streets & Highways Code §§ 36524 and
36525, the following rules shall apply to all protests:
(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) 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.
Resolution No. 19-20 Page 3 of 9
(e) If written protests are received from the owners of businesses in the
proposed Business Improvement Area which will pay fifty percent (50%) or
(f)
ATTEST:
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 filing of a majority
protest.
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.
PASSED AND ADOPTED this 7th day of May, 2019.
au& 42�
Brenda Green, ity Clerk
APPROVED AS TO FORM:
K mberly Wail Barlow, City Attorney
Resolution No. 19-20 Page 4 of 9
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. 19-20 and was duly passed
and adopted by the City Council of the City of Costa Mesa at a regular meeting held on
the 7t" day of May, 2019, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, GENIS, REYNOLDS, MANSOOR,
MARK, STEPHENS, FOLEY
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 8th day of May, 2019.
Brenda Green ity Clerk
Resolution No. 19-20 Page 5 of 9
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 Streets &
Highways Code §§ 36500 et seq., the businesses commonly known as:
Ayres Country Inn & Suites
Property Address: 325 and 345 Bristol Street, Costa Mesa
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
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
Hilton Costa Mesa
Property Address: 3050 Bristol Street, Costa Mesa
Business Owner: Ashford Hospitality Trust
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254
Property Owner: Remington Lodging & Hospitality LP
14185 Dallas Parkway, Suite 1100
Dallas, Texas 75254
Resolution No. 19-20 Page 6 of 9
Crowne Plaza
Property Address: 3131 Bristol Street, Costa Mesa
Business Owner: Brighton Management
1901 Main Street, Suite 150
Irvine, CA 92614
Property Owner: 3131 Bristol Property UC, LLC
2711 Centerville Road, Suite 400
Wilmington, DE 19808
Holiday Inn Express Hotel & Suites
Property Address: 2070 Newport Blvd., Costa Mesa
Business Owner:
Property Owner:
Costa Mesa Marriott
Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Property Address: 500 Anton Boulevard, Costa Mesa
Business Owner: Marriott International
10400 Fernwood Rd.
Bethesda, MD 20817
Property Owner: Host Hotels & Resorts
6903 Rockledge Dr., Suite 1500
Bethesda, MD 20817
Ramada Inn & Suites Costa Mesa
Property Address: 1680 Superior Ave., Costa Mesa
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
Resolution No. 19-20 Page 7 of 9
Residence Inn by Marriott
Property Address: 881 Baker Street, Costa Mesa
Business Owner: Marriott International
10400 Fernwood Rd.
Bethesda, MD 20817
Property Owner: ING Clarion Partners
2650 Cedar Springs Road, Suite 850
Dallas, TX 75201-1491
The Westin South Coast Plaza Hotel
Property Address: 686 Anton Boulevard, Costa Mesa
Business Owner: Host Hotels & Resorts
6903 Rockledge Dr., Suite 1500
Bethesda, JD 20817
Property Owner: CJ Segerstrom & Sons
c/o South Coast Plaza
686 Anton Boulevard
Costa Mesa, CA 92626
Avenue of the Arts Wyndham Hotel
Property Address: 3350 Avenue of the Arts, Costa Mesa
Business Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627
Property Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627
BLVD Hotel
Property Address: 2430 Newport Blvd, Costa Mesa
Business Owner: Hollywood Corner Inc.
2430 Newport Blvd.
Costa Mesa, CA 92627
Property Owner: Shyamal Patel, CA 92782
16609 Honeybee Dr.
Tustin, CA 92682
Resolution No. 19-20 Page 8 of 9
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.
The specific improvements and activities to be funded by this assessment are outlined in the
TCM's 2018-2019 Annual Report.
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.
Resolution No. 19-20 Page 9 of 9