HomeMy WebLinkAbout05/20/2008, BUS 5 - OPPORTUNITY TO HEAR TESTIMONY REGARDING THE PROPOSED TOURISM BUSINESS IMPROVEMENT DISTRICT counat 5-20-08
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CITY OF SAN LUIS O B I S P O
FROM: Shelly Stanwyck, Assistant City Administrative Officer
Prepared By: Brigitte Elke, Principal Administrative Analyst
SUBJECT: OPPORTUNITY TO HEAR TESTIMONY REGARDING THE
PROPOSED TOURISM BUSINESS IMPROVEMENT DISTRICT
CAO RECOMMENDATION
Receive public testimony regarding the proposed Tourism Business Improvement District.
DISCUSSION
On April 15, 2008, the Council adopted a Resolution of Intention to establish a Tourism Business
Improvement District (TBID) in the City of San Luis Obispo. The establishment of the TBID is
consistent with the petitions received from City hoteliers and a subsequent mediation process
resulting in a majority vote in favor of the district. The purpose of forming a business
improvement area under the Parking and Business Improvement Area Law of 1989 is to raise
revenue to be used for specific purposes as defined by state law and incorporated into a city
ordinance. In the case of a tourism business improvement district, the increased revenue is
intended to defray the costs of services, activities and programs promoting scenic, recreational,
and cultural attractions in the district to increase tourism and directly benefit the operators of
lodging establishments in the district. The proposed TBID considers an assessment of two
percent of gross room rates,generating approximately $950,000 per annum:
In order to establish the proposed TBID and levy a two percent assessment, the Council must
adopt an ordinance governing the district. Prior to adopting the ordinance, state law requires that
the City provide notice of its intention to establish the TBID and that Council conduct both a
public meeting to receive general comments on the proposal and a public hearing to consider
business owner protests to the proposed district. In accordance with State law, the City provided
published and mailed notice to affected business owners of the adoption of the Resolution of
Intention, the public meeting on May 20, 2008, and the public hearing on June 3, 2008.
The Council's role at this public meeting is simply to provide an opportunity for interested
members of the public to provide testimony that may be relevant to Council's consideration of
the proposed increase. The Council should not take any action in response to the testimony
received beyond discussion and consideration. At the public hearing scheduled for June 3, 2008,
the Council will consider protests, if any, of affected lodging business owners and introduce the
ordinance authorizing the establishment of the TBID, if no valid protest is made.