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Home My WebLink About16-40 - Annual Assessment for FY 2016-2017 (BIA)RESOLUTION 16-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2016-2017 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, in adopting the Parking and Business Improvement Area Law of 1989 (Streets & Highways Code § 36500 et seq.), the California Legislature 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 ("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 11 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 11 hotel and motel businesses listed in Exhibit A, attached hereto and incorporated 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%) based on the sale of overnight room stays; and Resolution No. 16-40 Page 1 of 4 WHEREAS, in November 2010, the City Council approved an increase in the assessment, raising the assessment from two percent (2%) to three percent (3%) based on the sale of overnight room stays; and WHEREAS, the City desires to levy and collect a three percent (3%) assessment within the BIA for Fiscal Year 2016-2017; and WHEREAS, a Resolution of Intention was adopted by the City Council pursuant to Streets & Highways Code § 36534 at a meeting on May 3, 2016; and WHEREAS, the City Council has conducted a public hearing pursuant to Streets and Highways Code § 36535; and WHEREAS, the City Council now desires to confirm the annual report filed by the CMCVB and adopt this Resolution to levy the assessment for the 2016-2017 fiscal year. follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as Section 1. Assessment. An annual assessment for the BIA shall be levied pursuant to Streets & Highways Code § 36500 et seq. The boundaries of the territory are the 11 motels and hotels listed in Exhibit A. The amount of the annual assessment is three percent (3%) based on the sale of overnight room stays. New hotel and motel businesses commenced after the effective date of the resolution levying the assessment will be exempt from the levy of assessment, pursuant to Streets & Highways Code § 36531. Section 2. Annual Report. An annual report on the Business Improvement Area has been prepared. Said report is on file in the City Clerk's Office. Section 3. Types of Activities to Be Funded. The 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, attached hereto and incorporated by this reference. Resolution No. 16-40 Page 2 of 4 Section 4. Reporting and Remitting to the City of Costa Mesa Finance Department. Each hotel/motel owner shall separate the Business Improvement Assessment from the Transient Occupancy Tax on guest billing statements. The specific term "Business Improvement Assessment" shall be included on the billing to identify the assessment amount. The hotel/motel owner shall collect and subsequently remit the assessment to the City Finance Department at the same time and manner as the Transient Occupancy Tax. A ten percent (10%) penalty and half percent (0.5%) interest will be assessed on late remittances. Section 5. Method and Basis of Lew. To allow each business owner to estimate the amount of the assessment to be levied against his or her business, the method and basis of levying the assessment are set forth in the annual report relative to the Business Improvement Area, Ordinance 95-9, and Exhibit B. BE IT FURTHER RESOLVED THAT the City Council of the City of Costa Mesa, California, does hereby adopt the annual report on the business improvement area (referenced report on file in the City Clerk's Office), and this Resolution as set forth herein, including all exhibits. Stephen M. Me)ksingW, Mayor ATTEST: Brenda Green, dty Clerk STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF COSTA MESA AND ADOPTED this 7th day of June, 2016. r— uin FJretiosi, Deputy City Attorney ss Resolution No. 16-40 Page 3 of 4 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. 16-40 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 7T" day of June, 2016, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: Foley, Genis, Monahan, Righeimer, and Mensinger 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 8th day of June, 2016. Pew ijk aeg. d BRENDA GREEN, CITY CLERK Resolution No. 16-40 Page 4 of 4 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 BLVD Hotel Property Address: 2430 Newport Blvd., Costa Mesa, CA 92627 Business Owner: Shayamal Patel 2450 Newport Blvd Costa Mesa, CA 92627 Property Owner: Shayamal Patel 2450 Newport Blvd Costa Mesa, CA 92627 Hilton Costa Mesa Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Ashford TRS CM LLC 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Property Owner: Remington Lodging & Hospitality LP 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 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 Boulevard, Costa Mesa Business Owner: Narendra B. Patel 2070 Newport Boulevard Costa Mesa, CA 92667 Property Owner: Narendra B. Patel 2070 Newport Boulevard Costa Mesa, CA 92667 Costa Mesa Marriott Property Address: 500 Anton Boulevard, Costa Mesa Business Owner: Marriott International 10400 Fernwood Road Bethesda, MD 20817 Property Owner: Host Hotels & Resorts 6903 Rockledge Drive, Suite 1500 Bethesda, MD 20817 Ramada Inn & Suites Costa Mesa Property Address: 1680 Superior Avenue, Costa Mesa Business Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Avenue Costa Mesa, CA 92627 Property Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Avenue Costa Mesa, CA 92627 Residence Inn by Marriott Property Address: 881 Baker Street, Costa Mesa Business Owner: Marriott International 10400 Fernwood Road Bethesda, MD 20817 Property Owner: ING Clarion Partners 2650 Cedar Springs Road, Suite 850 Dallas, TX 75201-1491 The Westin South Coast Plaza Property Address: 686 Anton Boulevard, Costa Mesa Business Owner: Host Hotels & Resorts 6903 Rockledge Drive 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: Property Owner: Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92627 Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92627 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 2016-2017 Annual Report. Revenue A three percent (3%) levy will be assessed against each of the 11 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 within the BIA commenced after the effective date of this resolution will be exempt from the levy of assessment.