HomeMy WebLinkAbout14-25 - Levy an Annual Assessment for FY 2014-2015RESOLUTION NO. 14-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT
FOR FISCAL YEAR 2014-2015 FOR A BUSINESS IMPROVEMENT AREA COVERING
CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND
PLACE FOR A PUBLIC HEARING ON PROPOSAL
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, the California Legislature in adopting the Parking and Business
Improvement Area Law of 1989 (Streets & Highways Code § 36500 et. seq.) 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 (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 of Costa Mesa; and
WHEREAS, the City Council appointed the general managers of the 10 hotels and
motels subject to the assessment area, to serve as the advisory board as required by
California Streets and Highways Code Section 36530; and
WHEREAS, said advisory board is known as the Costa Mesa Conference and Visitor
Bureau (the "CMCVB"); 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 ten hotel and motel
businesses listed on Exhibit A, attached hereto and incorporated herein by this reference;
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%). The
two percent (2%) assessment is 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%). The
Resolution No. 14-25 Page 1 of 8
three percent (3%) assessment is 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 (Streets & Highways Code § 36500
et seq.) to levy the annual assessment of the Costa Mesa Tourism & Promotion Council
Business Improvement Area for the 2014-2015 fiscal year; and
WHEREAS, the Agenda Report for the May 6, 2014 City Council Meeting and filed
with the City Clerk sets forth a detailed description of the activities to be provided in the
2014-2015 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 Council Business Improvement Area is proposed to be levied pursuant to
Streets & Highways Code § 36500 et seq. The proposed boundaries of the territory are
the 10 motels and hotels listed in Exhibit A, attached hereto and incorporated herein by
this reference. The proposed amount of the annual assessment is three percent (3%).
The three percent (3%) assessment is based on the sale of overnight room stays. New
hotel and motel businesses commenced after the effective date of the ordinance levying
the assessment will be exempt from the levy of assessment, pursuant to Streets &
Highways Code § 36531 and § 36535.
Section 2. Annual Report. An annual report on the Business Improvement Area
has been prepared by the Costa Mesa Conference & Visitor Bureau, 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 Council Business Improvement Area are
specified in the referenced annual report and Exhibit B.
Section 4. Method and Basis of Lew. The proposed method and basis of levying
the assessment to allow each business owner to estimate the amount of the assessment
Resolution No. 14-25 Page 2 of 8
to be levied against his or her business is set forth in the Costa Mesa Conference & Visitor
Bureau'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 business improvement area and the annual levy of assessments shall be
at 7 p.m., June 3, 2014, at the Costa Mesa City Hall, City Council Chambers, 77 Fair
Drive, Costa Mesa, California. 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.
Section 6. Protests. 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, Room 101, 77 Fair Drive, Post Office Box 1200, Costa Mesa,
California 92626-1200, 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) 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 the business improvement area
assessment, as specified by this resolution of intention, shall be taken by the
City Council for a period of one year from the date of the filing of a majority
protest.
BE IT FURTHER RESOLVED THAT the City Council of the City of Costa Mesa,
California, does hereby adopt the annual report by the Costa Mesa Conference & Visitor
Resolution No. 14-25 Page 3 of 8
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Bureau acting as the advisory board on the business improvement area (referenced
report on file in the City Clerk's Office), and this Resolution of Intention as set forth herein,
and Exhibit "A" which is attached hereto and incorporated by this reference.
PASSED, APPROVED, AND ADOPTED this 6th day of May, 2014.
ATTEST:
brlj1.
Brenda Green, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF COSTA MESA )
ss
APPROVED AS TO FORM:
ThomMbbad6,ity Attorney
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. 14-25 and was duly passed
and adopted by the City Council of the City of Costa Mesa at a regular meeting held on
the 6th day of May 2014, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: Genis, Leece, Monahan, Mensinger, Righeimer
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 7th day of May 2014.
,gjnda- - - .11-2/V��
BRENDA GREEN, CITY CLERK
Resolution No. 14-25 Page 4 of 8
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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. 14-25 Page 5 of 8
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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:
Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Costa Mesa Marriott
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
Resolution No. 14-25 Page 6 of 8
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Property Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.
Costa Mesa, CA 92627
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
Resolution No. 14-25 Page 7 of 8
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EXHIBIT B
The BIA assessment will be used to fund the Costa Mesa Conference & Visitor Bureau
(CVB). The CVB 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 CMCVB's 2013-2014 Annual Report.
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. 14-25 Page 8 of 8