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HomeMy WebLinkAbout11/2/2021 Item 7a, Hermann/Cano - Staff Agenda Correspondence City of San Luis Obispo, Council Memorandum Council Agenda Correspondence DATE: November 1, 2021 TO: Mayor and Council FROM: Greg Hermann, Deputy City Manager Molly Cano, Tourism Manager VIA: Derek Johnson, City Manager SUBJECT: Item #7a. - ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT Staff is providing this memo in response to an inquiry received from a Council Member requesting clarity on two items related to the TBID Public Hearing. As stated in the staff report, the TBID was formed in 2008 when the City Council adopted Ordinance 1517 establishing the Tourism Business Improvement District (TBID) in the City of San Luis Obispo, as requested by the local lodging industry. The assessment of two percent of gross receipts for the district became effective on October 1, 2008 and has remained unchanged since that time. The use of funds is defined in Section 12.42.030 of the Municipal Code as follow: provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the di Annually, the city conducts a two-part process for Council to decide whether to continue the TBID, which consists of the adoption of the Annual Report followed by the Annual ID Annual Report at the September 21, 2021 meeting, and the annual report has since been shared with the community at- large. In advance of the November 2, 2021 public hearing, staff wishes to respond to Council questions (stated below) seeking clarification of clarify subsection k of Resolution No. 11276 (2021 Series), which states the following: If, at the conclusion of the public hearing, there are of record, written protests by the owners of businesses within the proposed San Luis Obispo Tourism Business City of San Luis Obispo Item #7a. - ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT Page 2 Improvement District that will pay fifty percent (50%) or more of the total assessments of the entire San Luis Obispo Tourism Business Improvement District, no further proceedings to continue the San Luis Obispo Tourism Business Improvement District shall occur. New proceedings to form the San Luis Obispo Tourism Business Improvement District shall not be undertaken again for a period of at least one (1) year from the date of the finding. If the majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the San Luis Obispo Tourism Improvement District. 1. Question: Does subsection k mean that if one or more businesses together pay 50% if the TBID assessment costs, and they file a written protest about the assessment, then the TBID will be removed entirely? Answer: Yes, if valid protests are received from hoteliers within the City of San Luis Obispo who cumulatively contribute 50% or more of the of the proposed assessment, then the District will disband for a minimum period of 1-year. In preparation for this hearing, TBID constituents have received public notice informing them of the procedure to submit a public comment or protest. In the event a multitude of oral and written protests are received during the public hearing, staff would recommend that Council continue this item to a future meeting to provide staff the time needed to validate the protests received. Historically, the TBID has received no more than two protests annually, which does not qualify as a valid protest of 50% or more. The City has received no protests at the time of the correspondence. 2. majority of written protests are only as to an improvement or activity proposed, Answer: This section means that if 50% or more of validly received protests related to a specific to activity or improvement within the TBID, that activity or improvement shall be withdrawn or excluded from the district without threatening the district as a whole. The 36510 and 36513 of the California Streets and Highways Code: of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches. (c) Trash receptacles. (d) Street lighting. (e) Decorations. Item #7a. - ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT Page 3 (f) Parks. (g) Fountains. but is not limited to, all of the following: (a) Promotion of public events which benefit businesses in the area and which take place on or in public places within the area. (b) Furnishing of music in any public place in the area. (c) Promotion of tourism within the area. (d) Activities which benefit businesses located and operating in the area.