HomeMy WebLinkAbout01-32 - Levy an Annual Assessment for FY 2001-2002, Business Improvement Area (Hotels and Motels)RESOLUTION NO. O 1- 3 -7-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, DECLARING ITS
INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR
FISCAL YEAR 2001-2002 FOR A BUSINESS
IMPROVEMENT AREA COVERING CERTAIN COSTA
MESA HOTELS AND MOTELS AND SETTING THE TIME
AND PLACE OF A PUBLIC HEARING ON PROPOSAL.
WHEREAS, the California Legislature in adopting the Parking and Business
Improvement Area Law of 1989 (Streets & Highways Code Sections 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 Council, the purpose of which is to promote tourism to the
City and to fund programs that benefit the hotel and motel businesses within the
City of Costa Mesa; and
WHEREAS, the City Council has voted to continue the special assessment
for the Costa Mesa Tourism & Promotion Council Business Improvement Area each
year since its inception, including the adoption of Resolution No. 00-59 on July 3,
2000, authorizing the assessment for fiscal year 2000-2001; 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, this Resolution of Intention will commence proceedings under
the Parking and Business Improvement Area Law of 1989 (Streets & Highways
Code Section 36541) to levy the annual assessment of the Costa Mesa Tourism &
Promotion Council Business Improvement Area for the 2001-2002 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 Sections 36500 et seq. The proposed boundaries of
the territory are the seven motels and hotels listed in Exhibit A, attached hereto
and incorporated herein by this reference. The proposed amount of the annual
assessment is two percent (2%). The two percent (2%) 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 Sections
36531 and 36535.
Section 2. Annual Report. An annual report on the Business Improvement
Area has been prepared by the Costa Mesa Convention & Visitors Bureau, acting
as the advisory board as required by Streets & Highways Code Sections 36533
and 36534. Said report is attached hereto as Exhibit B and incorporated herein by
this reference.
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 Exhibit B.
Section 4. Method and Basis of Levy. 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.
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 6:30 p.m., July 2, 2001, 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) A written protest may be withdrawn in writing at any time
before the conclusion of the public hearing set forth above.
(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 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 that does not
comply with this paragraph 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 modify 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 Convention and
Visitors Bureau acting as the advisory board on the business improvement area,
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 21st day of May, 2001.
ATTEST:
Deputy City lerk of the City of Costa Mesa Mayor of the City of Costa Mesa
STATE OF CALIFORNIA ) AP OVED AS TO FORM
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA ) CITY ATTORNEY
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. Q/- 3 2 was duly and regularly passes and adopted by the
said City Council at a regular meeting thereof, held on the 21st day of May, 2001,
by the following roll call vote:
AYES: C. o cv A�) D;1Co,J) MOVA i-1AIJ) I1 SenAd TE E L
NOES: 'Qo IJ E
ABSENT: 13 o m E
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal
of the City of Costa Mesa this 22nd day of May, 2001.
DLe-�' -. �� ---o -
Deputy Ci Clerk and ex -officio Clerk of
the City C ncil of the City of Costa Mesa
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 Section 36500 et seq., the businesses commonly
known as:
1. Country Inn and Suites by Ayres
Property Address: 325 and 345 Bristol Street, Costa Mesa
Business Owner: Bruce Ayres
1817 Westminster Avenue
Newport Beach, Ca. 92660
Donald Ayres, Jr.
506 Via Lido Nord
Newport Beach, CA 92626
Property Owner: Homes by Ayres
355 Bristol Street, Suite A
Costa Mesa, CA 92626
2. Hilton Hotel
Property Address: 3050 Bristol Street, Costa Mesa
Business Owner: Hilton Corporation
9336 Civic Center Drive
Beverly Hills, CA 90210
3. Holiday Inn
Property Address:
Business Owner:
Property Owner:
3131 Bristol Street, Costa Mesa
Hanford Hotels, L.L.C.
Abbot B. Lipsky
c/o Hanford -Hotels, L.L.C.
4 Corporate Plaza, Suite 102
Newport Beach, CA 92660
4. Costa Mesa Marriott Suites
Property Address: 500 Anton Boulevard, Costa Mesa
Business Owner: J.W. Marriott, Jr.
Property Owner: Marriott Suites, Ltd.
1 Marriott Way
Washington, D.C. 02258
5. Residence Inn by Marriott .
Property Address: 881 Baker Street, Costa Mesa
Business Owner: Residence Inn by Marriott
1 Marriott Way
Washington, D.C. 02258
Property Owner: Marriott Residence Inn Ltd., Partnership
10400 Fernwood Road
Bethesda, Maryland 20817
6. The 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, CA 92626
7. Wyndham Hotel
Property Address: 3350 Avenue of the Arts, Costa Mesa
Business Owner: Amgreen Heritage Hotel Partners Ltd.
31200 Via Colimas, Suite 202
Westlake Village, CA 91362
EXHIBIT B
Exhibit "B" consists of the annual report submitted by the Costa Mesa Convention
& Visitors Bureau (also referenced in the staff report as Attachment "B").
e r iii?
Cal i or
rIA
} Cysta Nlesa
j The Best Of Southern California
int
FSA F 1 t
om
Submitted By: The Costa Mesa Conference & Visitor Bureau May 14, 2001
Costa Mesa
The Rest Of Southern California.
May 1, 2001
City of Costa Mesa
77 Fair Drive
Costa Mesa, California 92627-6520
Dear Council Members:
In accordance with the provisions of the Business Improvement Area (BIA) we submit
for your approval the Annual Report of the Costa Mesa Conference & Visitor Bureau
(CMCVB), now in its sixth year of operation. The Costa Mesa CVB was established tc
increase awareness of Costa Mesa as a visitor destination with the goal of increasing
awareness, hotel occupancy, travel spending, tax revenues and further contributing tc
the growth of the local economy.
This past year the Costa Mesa CVB expanded its scope and influence. The Bureau
`team" includes the seven hotel General Managers, three employees managing the day
to day operations, the creation of marketing materials and sales efforts; Pittman &
Associates implementing public relations and advertising placement and Lamas
Accounting managing the financial details. The hotel Marketing Directors meet regula -ly
to evaluate the marketing efforts, travel and occupancy trends and submit their
'narketing ideas to the CVB Board of Directors. The seven General Managers in
-onjunction with Councilwoman Linda Dixon and City Manager Allan Roeder have met
*egularly, without compensation, to further the image and economic development of
;osta Mesa as a destination.
rhe required contents of the Annual Report are detailed in Section 136533 of the Streets
and Highway Code. The format is as follows:
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 it
the benefit zone. Further, the Advisory Board recommends that the number oi:
properties included in the boundaries remain the sarne. If adcitional properties
Pagel of 11
osta Mesa Conference & Visitor Bureau • P.O. Box 5071, Costa Mesa, California 92628-5071
14.435.2109 • 800,399.5499 • fax 714.435.8522 w w w. c o s t a m e s a- c a c o m
-, i
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 improvements and activities to be provided for the Fiscal Year.
The Advisory Board recommends that the 2% assessment levy on the sale of
z hotel overnight guest room stays continue to be used to fund tourism activities
for the hotels.
During the sixth year, the Costa Mesa Conference & Visitor Bureau focused on
generating business for the hotels while increasing awareness of Costa Mesa as a
leisure travel destination. The Bureau has accomplished or is in process of the
completing the following projects and programs:
Marketing Materials
The marketing "package" includes a destination brochure, rack card (English, Spanisr
& Portuguese), hotel and dining brochures, 2000 & 2001 activities/events brochures
and CD Rom were distributed to travel writers, hotels, the City of Costa Mesa, Costa
Mesa Chamber of Commerce, inquiries and meetings booked in the hotels.
Calendar of Events
A quarterly calendar providing information on activities, arts, cultural events, and special
promotions was sent to more than 350 travel editors across the country, travel agents,
to inquiries generated by advertising, CVB hotels, City of Costa Mesa, Costa Mesa
Chamber of Commerce and to other local venues as requested.
"Gift From Us To You"
The "Gift From Us To You" includes 24 special restaurants, arts and retail offers that
reinforce the many amenities in Costa Mesa, provide additional value to the guest an,d
also generates additional business for the certificate participants at no cost to them.
This package is given to guests upon check-in.
The California Department of Tourism judged the "Gift From Us To You" the Best
Cooperative Marketing Program Award at the March 2001 Conference on Tourism.
Promotional Items
Key to the City, polo shirt, paper cube, CD leather case, ceramic coaster, candies anc,
tote on the rope were distributed to hotels and the City of Costa Mesa to give to clients,
guests and VIPS.
Page 2 of 11
P
Web Site (www.costamesa-ca.coni)
31 The web site address is included on all advertising and marketing materials.
In 2000/2001 the website recorded 1,142,000 hits and 208,000 page views.
The site has been modified to include video, the quarterly calendar of events and the
Meeting Facilities Guide.
Logo
The logo and tag line ("Costa Mesa. The Best Of Southern California.") have been
incorporated into marketing brochures, advertisements and promotional items.
Telephone/Business Reply Inquiries
The 800# Hotline -Answer Network received more than 4500 inquiries in 2000/2001
(over double the previous year). Answer Network responded to telephone inquiries
followed by sending a cover letter and brochure, in addition to serving as a fulfillment:
house for reader service cards generated by magazine and newspaper advertising.
Beginning January 1, 2001, fulfillment is done in-house with Answer Network's prime
responsibility is answering the 800#. This has saved the Costa Mesa CVB more than
$3400 annually.
Business Reply Inquiries (more than 15,000) from advertising are input and maintained
in a database that enables the hotels and the Bureau to implement direct mail
promotions to targeted audiences.
Over 260 group meeting leads were received from advertising in Meetings in the West
magazine and were contacted by the CVB and the hotels.
Advertising
During Fiscal Year 2000/2001 the Bureau implemented an aggressive print and radio
advertising campaign with more than 20,620,900 impressions targeting markets (Los
Angeles, Phoenix/Tucson, Palm Springs, Fresno/Bakersfield and San Francisco) that
have the potential to generate weekend, summer and holiday room business.
The campaign continues to position Costa Mesa as "The Best Of Southern California,"
reinforcing a highly desirable location offering a variety of amenities. The campaign
used one color and four color ads reinforcing Costa Mesa's proximity to Southern
California's pristine beaches and the central location to major attractions such as
Disneyland, Disney's California Adventure, Knott's Berry Farm and L.egoland.
Page 3 of 11
Advertising continues to provide measurable results through telephone calls, business_,
reply cards, and business booked directly with the hotels.
The Costa Mesa CVB partnered with five other CVBs via the Orange County Tourism
Consortium. The Consortium was allocated $750,000 per year for three years by the
Orange County Board of Supervisors to create and implement an advertising campai<; n
that markets the Orange County destination. In 2000 the consortium parlayed the
$750.000 in editorial plus community partners advertising with a total value of $2.3
million. This maximized Costa Mesa's exposure and saved the CVB over $39,000 in
advertising dollars.
Consumer/General Magazines
Sunset
Travel & Leisure
South West Airlines in flight magazine
Los Angeles Magazine
The Tourist (Amtrak)
Trade Publications (In house ad insertions saved more than $3400 annus ly
in commissions.)
Meetings in the West
Successful Meetings
The Meeting Professional
Orange County Business Journal
Western Association News
Meeting Planners International Directory
National Business Travel Association Convention Resource Guide
National Business Travel Association California edition
Newspapers
Los Angeles Times Travel Section
San Francisco Chronicle
Phoenix Republic
Fresno Bee
Bakersfield California
San Bernardino New3
Tucson Star Citizen
San Jose Mercury
Page 4 of 11
Other Media
2001 California Visitors Guide
Anaheim/Orange County Visitor Guide
Anaheim Meeting & Convention Planning Guide
Costa Mesa Chamber of Commerce Map
South Coast Metro PocketBook
Anaheim/Orange County Visitors Guide
California Holidays (United Kingdom)
World Travel Guide (Europe)
California Department of Tourism website
Radio stations in southern and central California
Public Relations
Press releases and press kits highlighting Costa Mesa as a leisure travel
destination were sent to 350 travel and business media on a regular basis.
Stories on Costa Mesa have been printed in several magazines and
newspapers.
Press Kits were distributed to domestic and international travel writers at PO'0Y
WOW, La Cumbre, Society of America Travel Writers with press releases in
English, Spanish and Portuguese.
"Beat the Heat Promotion" (May -September)
The "Beat the Heat" summer campaign was targeted to potential travelers from
Phoenix, Tucson, Palm Springs, and southern and central California via airline
and travel magazines, Sunday newspaper travel sections and radio.
"Shop Like the Dickens" Holiday Promotion (November -January)
This traditional holiday promotion was designed to encourage overnight stays
and increase holiday shopp,ng. The promotion included a complimentary holiday
gift filled with shopping and dining offers and was advertised in Sunset
Magazine, Los Angeles Magazine, and the San Francisco Chronicle.
"Shop Like the Dickens" direct mail piece created in conjunction with American
Express was sent to 75,000 American Express card holders, distributed to 33
American Express stores in the Western Region and inserted in the American
Express Custom Extras statement offers.
Page 5 of 11
Room nights generated: 147 (Room nights doubled from 1999 promotion)
Revenue generated: $92,500
January 1-14, 20001
The first two weeks of the year are traditionally low occupancy periods. The CV13
advertised in the Los Angels Times Sunday Travel Section offering special rates.
Room nights generated: 1538
Revenue generated: $57,500. This was "found" business for the hotels..
April 13-29,2001
The two weeks around Easter are traditionally lower occupancy periods. The
CVB advertised in the Los Angles Times Sunday Travel Section with radio
supplementing the print advertising.
Room nights generated: '60
Revenue generated: $23,840
UPG Sports
The Costa Mesa CVB continued sponsoring (two year commitment) UPG Spor:s
Tournaments held at venues in Irvine and Costa Mesa from May through July
2001. All seven CVB hotels offer special UPG rates and roorn blocks over this
time period.
Room nights generated: 750
Revenue generated: $50,000
Costa Mesa/Orange County Classic Jazz Festival
Costa Mesa CVB sponsored the First Annual Jazz Festival.
Room nights generated: 782
Revenue generated: $111,946
Total revenue generated: $133,385
Trade Shows
Attended La Cumbre, Anaheim; California Travel Mart in Palm Springs and POW
WOW in Orlando exposed to more than 700 national and international tour
operators with 63 specifically interested in California and Orange County.
The CVB created a series of three printed screens used in the trade show booth
that are easily and inexpensively shipped for out of state trade shows and
conventions.
Page 6 of 11
Partnerships
Partnerships have been strengthened with Orange County Tourism Council an J
Orange County Tourism Consortium in addition to working cooperatively with
Newport Beach and Huntington Beach Convention & Visitor Bureaus.
Community Outreach
A quarterly newsletter is faxed to Costa Mesa retailers, restaLrants and arts
groups providing information on programs and promotions targeting the visitor
market.
Marketing Committee
The hotel sales and marketing directors, Orange County Performing Arts Center,
South Coast Repertory, South Coast Plaza, Costa Mesa Fair & Exposition
Center and Metro Pointe meet bi-monthly. This committee oversees the
development of short and long-term strategic marketing, advertising programs,
special promotions, events and packages.
Each of the seven hotels are allocated quarterly marketing dollars based on their
total number of guest rooms. These funds enable each hotel to do some niche
marketing. They must include the Costa Mesa CVB logo, justify that the
advertising or direct mail increases room business and include a sample ad or
direct mail piece or flyer.
• 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.
Page 7 of 11
'The Advisory Board has prepared the following Financial Summary detailing the actual
revenues and expenses for 2000/01 and proposed fiscal year 2001/02.
Revenues
Projected YR6
Actual YR6
Projected ` R7
2000/2001
2000/2001
2001112002
Beginning Balance
$
128,325.00
July
$
91,800.00
$
84,155.00
$
84,100.00
August
$
89,600.00
$
116,955.00
$
11 0,00C.00
September
$
81,700.00
$
86,219.00
$
86,OOC.00
October
$
86,000.00
$
124,944.00
$
120,OOC.00
November
$
89,300.00
$
86,280.00
$
86,30C.00
December
$
64,200.00
$
68,839.00
$
68,800.00
January
$
79,400.00
$
89,560.00
$
89,50C.00
February
$
73,600.00
$
101,42-17.00
$
101,40C.00
March
$
99,200.00
$
99,200.00
$
99,20C.00
April
$
70,000.00
$
70,000.00
$
70,00C.00
May
$
84,000.00
$
84,000.00
$
84,000.00
June
$
74,000.00
$
74,000.00
$
74,OOC.00
'notal Revenue
(Revenues do not $ 982,800.00 $1,213,914.00 $ 1,073,300.00
include interest.)
Revenues for 2000/2001 were projected to remain the same as the previous
year.
Revenues for 2001/2002 are projected to remain flat and may decrease due to
uncertainties in the economy.
Budget Expense Projections for fiscal 2001/2002
(See attached Marketing Plan for cletails)
Page 8 of 11
Expenses
Advertising Campaign
Media Relations & Fam Tours
Brochures/Promotional items
Trade Shows
Administration/General
Special Promotions
Contingency Fund
City Council Program
Hotel Marketing Program
Total Expenses
Projected YRi'
$431,200.00
$44,100.00
$105,500.00
$24,100.00
$263,500.01)
$50,800.01)
$36,000.0[)
$10,000.00
$101,900.00
$1,067,100.00
Advertising Campaign
The 2001/2002 advertising campaign continues to aggressively generate;
awareness for weekE!nds, summer ("Beat the Heat" campaign) and
holidays ("Shop Like The Dickens" campaign) reinforcing Costa Mesa a
leisure travel destination as well as a meeting destination. This expen:sc-.-
includes design, production, buying space in print media and radio.
Estimated Expense $431,200
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 fcr travel press, meeting planners and group tour
operators.
Estimated Expense $44,100
Page 9 of 11
Marketing Materials
Brochures, rack cards, calendar of events, CD Rom, Internet site and
other marketing materials were updated and distributed to the State of
California Welcome Centers and John Wayne Airport, inquiries, travel
agents, tour operators, conference attendees, trade shows and meetini
planners.
Estimated Expense $89,800
Promotional Items
Paper Cubes, CD Rcm leather holders, playing cards, and beach towel,
are available to further promote the Costa Mesa destination.
Estimated Expense $15,700
Trade Shows/Conventions
The Costa Mesa CVE3 will attend several trade shows focusing on
international tour operators, meeting planners and travel managers.
Estimated Expense $24,100
Administrative & General Expenses
Answer Network will continue to answer the 800#. This category include -33
employee expenses, accounting fees, postage, insurance, city collecticr
fee and administrative expenses
Estimated Expenses $263,500
Special Promotions/Sponsorships
Special promotions include "A Gift From Us To You," expenses
associated with attracting UPG Sports Groups, Orange County Tourism
Service Awards, Jazz Festival and other sponsorship opportunities.
Estimated Expenses $50,800
Hotel Marketing Program
This program enables each hotel to implement "niche" marketing via
advertising, direct mail, and flyers. It must generate room business.
Estimated Expenses: $101,900
City Council Program
Funds are allocated for special programs initiated by the City Council that
promote the city and has the potential to generate room business.
Estimated Expenses: $10,000
Page 10 of 11
Contingency Fund
Beginning in March 2000, $3000 per month for 36 months will be
allocated for the Contingency Fund to provide funds for any unexpectel:
expenses or a decrease in revenues.
Estimated Annual Expense $36,000
The Advisory Board supports and enthusiastically works as a team t:)ward the succe''s
Of the! Costa Mesa Conference & Visitor Bureau. Advisory members Linda Dixon 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 the Costa Mesa CVB.
Ily
General Manager, Hilton Costa Mesa
President, Costa Mesa Conference & Visitor Bureau