HomeMy WebLinkAbout05-38 - Levying an Annual Assessment for FY 2005-06 for Business Improvement Area (Hotels & Motels)RESOLUTION NO. 05-38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, LEVYING AN ANNUAL
ASSESSMENT FOR FISCAL YEAR 2005-06 FOR A
BUSINESS IMPROVEMENT AREA COVERING CERTAIN
COSTA MESA HOTELS AND MOTELS. .
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
A. WHEREAS, the California Legislature, in adopting the Parking and
Business Improvement Area Law of 1989 (Streets & Highways Code Sections 36500 at
seq.), found that cities are authorized to levy assessments on businesses in order to
promote economic revitalization and tourism, to create jobs, attract new businesses and
prevent the erosion of business districts; and
B. WHEREAS, on July 5, 1995, by Ordinance No. 95-9, the City Council
adopted a business improvement area, now known as the Costa Mesa Tourism &
Promotion Business Improvement Area ("BIA"), the purpose of which is to promote
tourism to the City of Costa Mesa and to fund programs and activities that benefit the
hotel and motel businesses within the City; and
C. WHEREAS, the City Council appointed the general managers of the seven
hotels subject to the assessment area, to serve as the advisory board as required by
California Streets and Highways Code Section 36530; and
D. WHEREAS, said advisory board is known as the Costa Mesa Conference
and Visitor Bureau (the "CMCVB"); and
E. WHEREAS, the City Council has voted to continue the special assessment
for the BIA each year since its inception, that has been levied upon the seven hotel and
motel businesses listed on Exhibit A, attached hereto and incorporated herein by this
reference; and
F. WHEREAS, in January 2000, the CMCVB requested, and the City Council
approved, a request to raise the assessment from one percent (1 %) to two percent (2%),
which is based on the sale of overnight room stays; and
G. WHEREAS, on May 3, 2005, the City Council adopted Resolution No. 05-
33, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA
MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL
ASSESSMENT FOR FISCAL YEAR 2005-2006 FOR A BUSINESS IMPROVEMENT
AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING
THE TIME AND PLACE OF A PUBLIC HEARING ON PROPOSAL"; and
H. WHEREAS, at its meeting on May 3, 2005, the City Council of the City of
Costa Mesa approved the 2005 Annual Report of the Costa Mesa Conference & Visitor
Bureau submitted on May 3, 2005, and such report, attached hereto as Exhibit "C' and
incorporated herein by this reference, has been considered at the public hearing before
this Resolution was adopted; and
I. WHEREAS, Pacific Coast Hospitality, LLC, doing business as the Holiday
Inn Express Hotel and Suites Costa Mesa has requested and the City Council has
agreed that they be included in the Business Improvement Area; and
J. WHEREAS, on June 7, 2005 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 no protests of the proposed
assessment were filed or presented.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Costa
Mesa as follows:
1) An assessment for the Costa Mesa Tourism & Promotion Business
Improvement Area is levied for the fiscal year 2005-2006 pursuant to Streets &
Highways Code Sections 36500 at seq. The boundaries of the Business Improvement
Area are the eight hotels listed in Exhibit A, attached hereto and incorporated herein
by this reference.
2) The amount of the annual assessment on the business owners shall be
computed using the following formula: two percent (2%) of the gross revenue from the
sale of hotel overnight guest room stays. New hotel and motel businesses commenced
after the effective date of this Resolution will be exempt from the levy, pursuant to
Streets & Highways Code Section 36531 and Section 36535.
3) The business owners shall pay the assessment to the Costa Mesa City
Finance Department on a monthly basis.
4) The 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.
5) The type or types of activities to be funded by the assessments within the
Business Improvement Area are specified in Exhibit C.
6) Each business owner (hotel/motel) shall separate the Business
Improvement Assessment from the Transient Occupancy Tax on their guest billing
statements. The specific term 'Business Improvement Assessment" shall be included
on the billing to identify the assessment amount.
NOW, THEREFORE, BE IT FURTHER RESOLVED THAT the City Council of
the City of Costa Mesa, California, by this Resolution, does hereby levy an assessment
for fiscal year 2005-06 on the business owners within the Costa Mesa Tourism &
Promotion Business Improvement Area, as set forth in Exhibits "A" and "B" attached
hereto.
PASSED AND ADOPTED this 7h day of June 2005.
ATTEST: & ';�'
Deputy ty Clerk of the City of of C� osta Mesa Mayor of the City of Costa Mesa
APPROVED AS TO FORRj�_M�
, ^-'__'
City Attorney
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, 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. 05-38
was duly and regularly passed and adopted by the said City Council at a regular
meeting thereof held on the 7" day of June, 2005, by the following roll call vote:
AYES: Mansoor, Monahan, Bever, Dixon, Foley
NOES: None
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the City of Costa Mesa this 8"' day of June, 2005.
DepW City Clerk and ex -officio Clerk of
the City Council of the City of Costa Mesa
EXHIBIT A
The Business Improvement Area ('BIA") benefit zone encompasses the entire
boundaries of the City of Costa Mesa. It is anticipated that the entire City, including
businesses and residents, will benefit from the increased revenues generated by the
activities financed by the BIA assessments.
The following businesses will be included in the Business Improvement Area, which is
established pursuant to Streets & Highways Code § 36500 at seq.:
1. Ayres Country Inn & Suites
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 92658
Property Owner: Homes by Ayres
355 Bristol Street, Suite A
Costa Mesa, CA 92626
2. Hilton Costa Mesa
Property Address: 3050 Bristol Street, Costa Mesa
Business Owner: CNL Hospitality Corp.
450 South Orange Ave.
Orlando, FL 32801
3. Holiday Inn
Property Address: 3131 Bristol Street, Costa Mesa
Business Owner: Hanford Hotels
Property Owner: Hanford Hotels
1 Corporate Drive
Newport Beach, CA 92660
4. 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
The Westin
1 Marriott Way
c/o South Coast Plaza
Washington, D.C. 02258
Property Owner:
Marriott Residence Inn Ltd., Partnership
Costa Mesa, CA 92626
10400 Femwood Road
Bethesda, Maryland 20817
6. The Westin South Coast Plaza Hotel
Property Address:
686 Anton Boulevard, Costa Mesa
Business Owner:
Starwood Hotels and Resorts
Property Owner:
The Westin
c/o South Coast Plaza
686 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
8. Holiday Inn Express Hotel and Suites Costa Mesa
Property Address: 2070 Newport Blvd., Costa Mesa
Business Owner: Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
EXHIBIT B
The BIA assessment will be used to fund The Costa Mesa Conference & Visitor Bureau
("CMCVB"). The CMCVB will fund activities to promote tourism to the City of 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 2005 Annual Report by The Costa Mesa Conference & Visitor Bureau, which is
attached hereto as Exhibit C.
Revenue
A two percent (2%) levy will be assessed against each of the eight hotels listed in
Exhibit A, based on the gross 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
Note: New hotel and motel businesses commenced after the effective date of this
Resolution will be exempt from the levy of assessment.
EXHIBIT C
Exhibit 'C" consists of the 2005 Annual Report submitted by the Costa Mesa
Conference & Visitor Bureau on May 3, 2005. A copy of this may be viewed in the City
Clerk's Office.