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Home My WebLink About07-55 - Levying an Annual Assessment for FY 2007-08 for Business Improvement Area (Hotels & Motels)RESOLUTION NO. 07-55 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2007-08 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 et 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 nine 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 nine 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 15, 2007, the City Council adopted Resolution No. 07-48, 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 2007-2008 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 15, 2007, the City Council of the City of Costa Mesa approved the 2007 Annual Report of the Costa Mesa Conference & Visitor Bureau submitted on May 15, 2007, 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, on June 19, 2007, 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: 2 1) An assessment for the Costa Mesa Tourism & Promotion Business Improvement Area is levied for the fiscal year 2007-2008 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 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 2007-08 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 191" day of June, 2007. ATTEST: Julf6 Folcik, City Clerk Allan R. Mansoor, Mayor APPROVED AS TO FORM: AP Kimberly gall Barlow, City Attorney 4 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 the above and foregoing is the original of Resolution No. 07-55 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 1gt" day of June, 2007, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: MANSOOR, BEVER, DIXON, FOLEY, LEECE 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 20th day of June, 2007. JJ �ICIKK (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 Hotel & 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 355 Bristol Street, Suite A Costa Mesa, CA 92626 Hilton Orange County/Costa Mesa Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Ashford Hospitality Trust 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Holiday Inn Costa Mesa Property Address: 3131 Bristol Street, Costa Mesa Business Owner: Hanford Hotels Property Owner: Hanford Hotels 1 Corporate Drive Newport Beach, CA 92660 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 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 Ramada Limited & 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 Residence Inn by MarriottCosta 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 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 Orange County Property Address: 3350 Avenue of the Arts, Costa Mesa Business Owner: Makar 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 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 2007 Annual Report, which is attached 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 annual report submitted by the Costa Mesa Conference & Visitor Bureau (also referenced in the staff report as Attachment "2"). 10