HomeMy WebLinkAbout2024-16 - 2024-25 BIA of IntentRESOLUTION NO. 2024-16
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA,
DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2024-
25 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS
AND MOTELS AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON THE
PROPOSAL
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
(California Streets and Highways Code sections 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 eleven (11) hotels and motels listed in Exhibit A, attached hereto and
incorporated herein by this reference, are currently subject to the assessment; and
WHEREAS, the City Council appointed the general managers of the 11 hotels and motels
subject to the assessment to serve as the advisory board as required by California Streets and
Highways Code section 36530; and
WHEREAS, said advisory board is known as Travel Costa Mesa ("TCM"); 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; 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
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 2024-2025; and
Resolution No. 2024-16 Page 1 of 9
WHEREAS, this Resolution of Intention will commence proceedings under the Parking
and Business Improvement Area Law of 1989 to levy the annual assessment of the Costa Mesa
Tourism & Promotion Business Improvement Area for the 2024-25 Fiscal Year; and
WHEREAS, the Agenda Report and its attachments for the May 7, 2024 City Council
meeting filed with the City Clerk set forth a detailed description of the activities to be provided in
the 2024-25 Fiscal Year, the boundaries of the Business Improvement Area, the benefit zone of
the area, and the proposed assessments to be levied upon the businesses within the area for the
coming fiscal year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as
follows:
Section 1. Intention; Assessment. The City Council hereby declares its intention to levy
and collect assessments in the Costa Mesa Tourism & Promotion Business Improvement Area
for Fiscal Year 2024-25 pursuant to California Streets & Highways Code §§ 36500, et seq. The
boundaries of the Costa Mesa Tourism & Promotion Business Improvement Area are the 11
motels and hotels listed in Exhibit A. The proposed 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 California Streets & Highways Code § 36531.
Section 2. Annual Report. An annual report on the Costa Mesa Tourism & Promotion
Business Improvement Area has been prepared by TCM, acting as the advisory board, as
required by California Streets & Highways Code §§ 36533 and 36534. Said report is on file in the
City Clerk's Office. The 2023-24 annual report of the Costa Mesa Tourism & Promotion Business
Improvement Area is hereby approved.
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 herein.
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 Costa Mesa 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.
Resolution No. 2024-16 Page 2 of 9
Section 5. Method and Basis of Levy. 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 No. 95-9, and Exhibit B.
Section 5. Time and Place of Public Hearing. The time and place of the public hearing on
the levy of an annual assessment for Fiscal Year 2024-25 shall be 7:00 p.m. on June 4, 2024. At
the public hearing set forth above, the testimony of all interested persons for or against the annual
levy of the assessment for the Business Improvement Area, the extent of the area, and/or the
furnishing of specific types of improvements or activities will be heard by the City Council.
Section 6. Protests. Consistent with California Streets & Highways Code §§ 36524 and
36525, 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,
77 Fair Drive, Room 101, Costa Mesa, California 92626, 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.
(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 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 which does not comply with
this section 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 continue
to levy the Business Improvement Area assessment, as specified by this Resolution,
shall be taken by the City Council for a period of one year from the date of the finding
of a majority protest.
Resolution No. 2024-16 Page 3 of 9
(g) If the majority protest is only against the furnishing of a specified type or types of
improvement or activity within the Business Improvement Area, those types of
improvements or activities shall be eliminated.
Section 7. Publication. The City Clerk shall cause this Resolution of Intention to be published
once in a newspaper of general circulation in the City at least seven (7) days before the June 4,
2024 public hearing.
Resolution No. 2024-16 Page 4 of 9
PASSED AND ADOPTED this 7tn day of May, 2024.
ATTEST:
Brenda Green, Cit Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF COSTA MESA
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n Stephens, M
APPROVED AS TO FORM:
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'� Kimberly Hill Barlow, City Attorney
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. 2024-16 and was duly passed and adopted
by the City Council of the City of Costa Mesa at a regular meeting held on the 7th day of May,
2024, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, GAMEROS, HARPER, MARR, REYNOLDS, HARLAN,
AND STEPHENS.
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 May, 2024.
�&Ix &0- or'--CQiyL�
Brenda Green, Cit Clerk
Resolution No. 2024-16 Page 5 of 9
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 California
Streets and Highways Code sections 36500, et seq., the businesses commonly known as:
Avenue of the Arts A Tribute Portfolio Hotel
Property Address: 3350 Avenue of the Arts, Costa Mesa
Business Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627
Property Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627
Ayres Country Inn & Suites
Property Address: 325 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
Resolution No. 2024-16 Page 6 of 9
Crowne Plaza
Property Address: 3131 Bristol Street, Costa Mesa
Business Owner: Brighton Management
20342 SW Acacia St.
Newport Beach, CA 92660
Property Owner: Bright Bristol Street LLC
3131 Bristol Street
Costa Mesa, CA 92626
Hilton
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
Holiday Inn Express Hotel & Suites
Property Address: 2070 Newport Boulevard, Costa Mesa
Business Owner: Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Property Owner:
Costa Mesa Marriott
Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Property Address: 500 Anton Boulevard, Costa Mesa
Business Owner: Starwood Capital Group
591 West Putnam Avenue
Greenwich, CT 06830
Property Owner: HEI Hotels & Resorts
101 Merritt 7 Corporate Park, 1"Floor
Norwalk, CT 06851
Resolution No. 2024-16 Page 7 of 9
OC Hotel Costa Mesa (Formerly BLVD Hotel)
Property Address: 2430 Newport Boulevard, Costa Mesa
Business Owner: Sai Hospitality Services, LLC
11556 Manchester Way
Porter Ranch, CA 91326
Property Owner: Sanjay Panchal
11556 Manchester Way
Porter Ranch, CA 91326
Ramada Inn & Suites Costa Mesa
Property Address: 1680 Superior Avenue, Costa Mesa
Business Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.
Costa Mesa, CA 92627
Property Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.
Costa Mesa, CA 92627
Residence Inn by Marriott
Property Address: 881 Baker Street, Costa Mesa
Business Owner: Marriott International
10400 Fernwood Rd.
Bethesda, MD 20817
Property Owner: BRIE Select Hotels and Resorts
6201 15th Avenue
Brooklyn, NY 11219
The Westin South Coast Plaza Hotel
Property Address: 686 Anton Boulevard, Costa Mesa
Business Owner: Host Hotels & Resorts
6903 Rockledge Dr., Suite 1500
Bethesda, MD 20817
Property Owner: CJ Segerstrom & Sons
c/o South Coast Plaza
686 Anton Boulevard
Costa Mesa, CA 92626
Resolution No. 2024-16 Page 8 of 9
EXHIBIT B
The BIA assessment will be used to fund Travel Costa Mesa ("TCM"). TCM 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.
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 commenced after the effective date of this resolution will
be exempt from the levy of assessment.
Resolution No. 2024-16 Page 9 of 9