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Home My WebLink About06-56 - Levying an Annual Assessment for FY 2006-07 for Business Improvement Area (Hotels & Motels)RESOLUTION NO. 06-56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2006-07 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: 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 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 WHEREAS, the City Council appointed the general managers of the eight hotels 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 eight hotel and motel businesses listed on Exhibit A, attached hereto and incorporated herein by this reference; and 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 WHEREAS, on May 16, 2006, the City Council adopted Resolution No. 06-40, 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 2006-2007 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 WHEREAS, at its meeting on May 16, 2006, the City Council of the City of Costa Mesa approved the 2006 Annual Report of the Costa Mesa Conference & Visitor Bureau submitted on May 16, 2006, 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 WHEREAS, B.D. Inns Inc./Ramada Ltd. Costa Mesa, doing business as the Ramada Inn Ltd. has requested and the City Council has agreed that they be included in the Business Improvement Area; and WHEREAS, on June 20, 2006 in the Council Chambers of City Hall, 77 Fair Drive, Costa Mesa, California, a public hearing was held concerning the annual E 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 2006-2007 pursuant to Streets & Highways Code Sections 36500 et seq. The boundaries of the Business Improvement Area are the city limits, with assessments to be made on the nine 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 net 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 3 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 2006-07 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 201h day of June 2006. i or of the City of Costa Mesa ATTEST: Cit Clerk of the City of Costa Mesa 4 APPROVED AS TO FORM . 4�4j City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that foregoing is the original of Resolution No. 06-56 and was duly passed and adopted b� the City Council of the City of Costa Mesa at a regular meeting held on the 20 day of June, 2006, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: Mansoor, Bever, Dixon, Foley, Monahan. NOES: COUNCIL MEMBERS: None. ABSENT: COUNCIL MEMBERS: None. IN WITNESS WHEREOF, 1 have hereby set my hand and affixed the seal of the City of Costa Mesa this 21s' day of June, 2006. JULIE FOLCIK, CITY CLERK (SEAL) 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: Bruce Ayres 1817 Westminster Avenue Newport Beach, Ca. 92660 Donald Ayres, Jr. 506 Vio Lido Nord Newport Beach, CA 92626 Property Owner: Homes by Ayres 111 355 Bristol Street, Suite A Costa Mesa, CA 92626 Costa Mesa Marriott 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 Hilton Costa Mesa Property Address: 3050 Bristol Street, Costa Mesa Business Owner: CNL Hospitality Corp. 450 South Orange Ave. Orlando, Florida 32801 111 Holiday Inn Property Address: 3131 Bristol Street, Costa Mesa Business Owner: Hanford Hotels Property Owner: Hanford Hotels 1 Corporate Drive Newport Beach, CA 92660 Holiday Inn Exoress Hotel and Suites. Costa Mesa Property Address: 2070 Newport Blvd., Costa Mesa Business Owner: Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Ramada Inn Property Address: 1680 Superior Ave., Costa Mesa Business Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 Residence Inn, Costa Mesa 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, MD 20817 7 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 Wyndham Hotel Property Address: 3350 Avenue of the Arts, Costa Mesa Business Owner: Maker Bay North Costa Mesa, LLC 4100 MacArthur Blvd., Suite 200 Newport Beach, CA 92660 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 2006 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 nine 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. EXHIBIT C Exhibit "C" consists of the 2006 Annual Report submitted by the Costa Mesa Conference & Visitor Bureau on May 16, 2006. A copy of this may be viewed in the City Clerk's Office. 10