HomeMy WebLinkAbout06/03/2008, PH2 - PROTEST HEARING REGARDING THE PROPOSED TOURISM BUSINESS IMPROVEMENT DISTRICT r
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council Meeng D� 6-3-2008
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CITYOF SAN LUIS OBISPO
FROM: Shelly Stanwyck,Assistant City Administrative Officer
Prepared By: Brigitte Elke, Principal Administrative Analyst
SUBJECT: PROTEST HEARING REGARDING THE PROPOSED TOURISM BUSINESS
IMPROVEMENT DISTRICT
CAO RECOMMENDATION
1. Conduct a public hearing to receive testimony regarding the Council's intention to establish a
citywide Tourism Business Improvement District.
2. Rule upon any protests.
3. If a legally sufficient protest showing is not made, introduce an ordinance establishing the Tourism
Business Improvement District in the City of San Luis Obispo.
DISCUSSION
Background
On April 15, 2008 Council reviewed a proposal to establish a citywide Tourism Business Improvement
District (TBID). This proposal arose out of a petition submitted in August 2007 by 24 City hoteliers
requesting that Council authorize the establishment of a citywide TBID. The hoteliers believed that
increased marketing efforts are needed in order for San Luis Obispo to succeed in an increasingly
competitive environment and that a TBID, a"self assessment" would be the best way to accomplish this
goal. Because at the time a countywide TBID was also under consideration, a mediation process
facilitated by Creative Mediation was undertaken to assess the hoteliers preferred TBID model —
citywide or countywide. That process was concluded on January 30, 2008 and resulted in consensus
amongst the hoteliers for a Citywide TBID.
Notice of Intent to Establish a Citywide TBID
In order to initiate this process, Council on April 15, 2008, adopted a Resolution of Intention
(Attachment 2 — Resolution 9972) indicating its intention to establish a TBID for the benefit of tourism
promotion and marketing in the City of San Luis Obispo. Included in this Resolution was the proposal
by City hoteliers to establish the citywide TBID with a two percent assessment of gross room rates.
Following the adoption of the Resolution of Intention and consistent with statutory requirements,
notification was published and mailed to area businesses and property owners (Attachment 3), notifying
the owners and other interested members of the public of the following key actions:
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Citywide Tourism Business Improvement District Page 2
1. Public Meeting. A public meeting to hear testimony supporting or opposing the proposed
citywide TBID,which was held at the May 20, 2008 Council meeting.
2. Protest Hearing. The June 3, 2008 TBD) Protest Hearing which is the subject of this report.
3. Introduction of Ordinance to Increase Assessment. Absent valid protests, the June 3, 2008
Introduction of the Ordinance to establish the citywide TBID (Attachment 1).
4. Final Adoption of Ordinance to Increase Assessment. The final adoption of the proposed
Ordinance to establish a citywide TBH), scheduled to occur on June 17, 2008, assuming no valid
protest.
5. Ordinance Effective. If all the actions are taken as described above, the anticipated effective
date of the Ordinance will be July 17, 2008. Under the proposed ordinance, the assessment will
become effective August 1, 2008.
The required public meeting was held, as scheduled, on May 20, 2008. It was the opportunity for the
Council to receive input from the public. . No written correspondence was received and no public
testimony was given.
June 3,2008 Protest Hearing
The Council's next procedural step, prior to considering the establishment of a citywide TBH), is to
conduct a public protest hearing to hear any opposition from area business owners to the proposed
district. As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the
Council has the ability to approve the proposed citywide TBID at this public hearing, unless oral or
written protests are received from City hoteliers that will pay 50% or more of the proposed assessments.
In that event, the Council cannot consider a proposal to establish a TBID in the City of San Luis Obispo
for at least one year.
Oral protests can be made at the June 3, 2008 public hearing. Written protests must be received by the
City Clerk at or before the public hearing and must include a sufficient description of the business to
identify the owner and assure that it is a lodging establishment in the City of San Luis Obispo.
Introduction of Ordinance Establishing the Citywide TBID
The proposed Ordinance to Establish the Citywide TBID includes the language necessary to comply with
applicable State law. As mentioned previously, it results in the assessment to defined lodging properties
of two percent (2%) of gross room rent paid per night for all transient occupancies. At its public
hearing, and while considering the proposed TBH), the Council may reduce the proposed assessment
amount, but cannot increase it.
The proposed Ordinance also defines how the revenues generated will be used; to promote tourism
within the district as specified in a business plan adopted by Council annually and to market the district
to the benefit of the local tourism industry within the district (the City). The management of the
assessed funds is described in the proposed Ordinance in Section 12.42.100 regarding a five member
advisory body, or the TBID Board. The TBID Board as presently proposed was intended to accomplish
the goals of the hoteliers while addressing their concerns that the management of the funds be
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Citywide Tourism Business Improvement District Page 3
undertaken by the affected properties. The TBID Board as initially contemplated is limited to district
hotel operators or their employees.
Next Steps
If a legally sufficient protest is not made at the June 3, 2008 public hearing and if Council continues to
supports the proposed TBID, the proposed Ordinance establishing the district.must be introduced. Final
City Council adoption of the ordinance will be scheduled for June 17, 2008. If the City Council
approves final adoption at that time, the district will become effective on July 17, 2008. However, the
proposed effective date for the assessment is August 1, 2008. Prior to the effective date of the
assessment, staff will begin the process of recruiting for the TBID Advisory Board with recommended
appointees subject to Council approval.
CONCURRENCES
The recommended actions necessary to establish a citywide TBID is supported by the Promotional
Coordinating Committee (Attachment 4 — PCC Minutes) and the San Luis Obispo Chamber of
Commerce Board of Directors.
FISCAL IMPACT
Based on 2006-07 Transient Occupancy Tax (TOT) revenues, the assessment would generate
approximately$950,000 per annum for the purpose of tourism marketing and promotional efforts. Since
the assessment is directly tied to gross room revenue, the funds generated would fluctuate with the
citywide room rates and changes in room inventory and occupancy.
ALTERNATIVES
1. Council could decline to introduce an ordinance establishing the citywide TBID. Unless there is a
successful majority protest, staff does not recommend this option, given the work and direction to-
date from the Council and City hoteliers on this matter.
2. Council could choose a.different implementation date for the assessment to become effective.
3. Council could choose a different composition for the Advisory Board. This is however not
recommended, since the hoteliers supporting the TBID only did so with the understanding that the
advisory board will be composed of hoteliers.
ATTACHMENTS
1. Ordinance
2. Resolution of Intention 9972
3. Notification Letter to City Hoteliers
4. PCC Minutes—October 24, 2007
off-
ATTACHMENT 1
ORDINANCE NO. (2008 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING THE SAN LUIS OBISPO CITY TOURISM BUSINESS
IMPROVEMENT DISTRICT (TBID),FIXING THE BOUNDARIES
THEREOF,AND PROVIDING FOR THE LEVY OF A BUSINESS
ASSESSMENT TO BE PAID BY HOTELS IN SUCH DISTRICT
WHEREAS, on April 15, 2008, the City of San Luis Obispo Council adopted Resolution
No. 9972 (2008 Series) entitled, "Resolution of the City of San Luis Obispo Declaring its
Intention to Establish the San Luis Obispo Tourism Business Improvement District, to Establish
the Basis for and to Levy the Assessment for the District and to Set Dates for the Public Hearing
on the District and the Proposed Assessment"; and
WHEREAS, as specified in such Resolution, the boundaries of the district encompass
the City of San Luis Obispo, and there are no separate benefit zones within the district; and
WHEREAS, said Resolution was published and copies thereof were duly mailed and
posted, all as provided by state law and specified in the Resolution; and
WHEREAS, pursuant to that Resolution a public meeting concerning the formation of
said district was held before the City Council on May 20, 2008 at 7:00 p.m. in the City Council
Chambers at City Hall; and
WHEREAS, also pursuant to that Resolution a public hearing concerning the formation
of said district was held before the City Council on June 3, 2008 at 7:00 p.m. in the City Council
Chambers at City Hall; and
WHEREAS, all written and oral protests made or filed were duly heard, and testimony
for and against the proposed action was received and considered; and
WHEREAS, the City Council determined that there was no majority protest within the
meaning of Streets and Highways Code Section 36525; as written protests were not received
from owners of businesses in the proposed district which would pay fifty percent (50%) or more
of the assessments proposed to be levied; and
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. Pursuant to authority granted under the Parking and Business
Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq.,
the City of San Luis Obispo Tourism Business Improvement District (TBID) is hereby
established in the City of San Luis Obispo as herein set forth and all hotels in the district
established by this ordinance shall be subject to any amendments made hereafter to said law or to
other applicable laws.
ATTACHMENT 1
Ordinance No. (2008 Series)
Page 2
SECTION 2. The City Council of the City of San Luis Obispo finds that hotels within
the San Luis Obispo Tourism Business Improvement District will be benefited by the
improvements and activities funded by assessments to be levied.
SECTION 3. Chapter 12.42 (Tourism Business Improvement District) is hereby added
to Title 12 (Streets, Sidewalks and Public Places) of the San Luis Obispo Municipal Code to read
as follows:
12.42.010. Title. This chapter shall be known as the "City of San Luis Obispo
Tourism Business Improvement District Law."
12.42.020.Definitions.
(1) "City Council' shall mean the City of San Luis Obispo City Council.
(2) "District" shall mean the City of San Luis Obispo Tourism Business Improvement
District (or"TBID")created by this chapter and as delineated in Section 12.42.040.
(3) "Hotel' means any structure, or any portion of any structure, which is occupied or
intended or designed for occupancy by transients for dwelling, lodging or sleeping
purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor
hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club,
mobile home or house trailer at a fixed location, or other similar structure or portion
thereof.
(4) "Law" shall mean the Parking and Business Improvement Area Law of 1989,
California Streets and Highways Code Sections 36500 et seq., as amended.
(5) "Operator" shall mean the person who is the proprietor of the hotel, whether in the
capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other
capacity. Where the operator performs its functions through a managing agent of any type
or character other than an employee, the managing agent shall also be deemed an
operator for the purposes of this chapter and shall have the same duties and liabilities as
his principal. Compliance with the provisions of this chapter by either the principal of the
managing agent shall, however, be considered to be compliance by both.
(6) "Tourism Business Improvement District Board" or "TBID Board" shall mean the
advisory body appointed by the City Council, pursuant to this chapter.
(7) "Transient" means any person who exercises occupancy or is entitled to occupancy by
reason of concession, permit, right of access, license or other agreement for period of
thirty consecutive calendar days or less, counting portions of calendar days as full days.
Any such person so occupying space in a hotel shall be deemed to be a transient until the
period of thirty days has expired unless there is an agreement in writing between the
operator and the occupant providing for a longer period of occupancy. In determining
whether a person is a transient, uninterrupted periods of time extending both prior and
subsequent to the effective date of this chapter may be considered. (Prior code § 2551)
12.42.030. Authorized Uses. This ordinance is made and enacted pursuant to the
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
02 —.S
ATTACHMENT
Ordinance No. (2008 Series)
Page 3
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 district
as a tourist destination. It is the intent of this chapter to provide a supplemental source of
funding for the promotion of tourism in the district and it is not intended to supplant any
other existing sources of revenues which may be used by the City of San Luis Obispo for
the promotion of tourism. The specific services, activities and programs to be provided
• by the district are as follows:
A. The general promotion of tourism within the district is to include costs.as
specified in the business plan to be adopted annually by the City Council;
B. The marketing of the district to the travel industry in order to benefit local
tourism and the local hotel industry in the district.
12.42.040. Boundaries. The boundaries of the TBID shall be the boundaries of
the City of San Luis Obispo.
12.42.050. Levy of Assessment And Exemptions. The TBID shall include all
hotels located within the TBID boundaries. The assessment shall be levied on all hotels,
existing and future, within the City of San Luis Obispo based upon two percent (2%) of
the rent charged by the operator. The assessment shall be collected monthly, based on
two percent (2%) of the gross rent charged by the operator per night in revenues for the
previous month. New hotels within the boundaries shall not be exempt from the levy of
assessment authorized by Section 36531 of the law. Assessments pursuant to the TBID
shall not be included in gross room rental revenue for purpose of determining the amount
of the transient occupancy tax. The value of rooms for extended stays of more than thirty
(30)consecutive calendar days shall be exempt from the levy of assessment.
12.42.060. Annual Review of Assessment. All of the assessments imposed
pursuant to this chapter shall be reviewed by the City Council annually, based upon the
annual report prepared by the Tourism Business Improvement District Board appointed
pursuant to this chapter and Sections 36530 and 36533 of the law. After approval of the
annual report the City Council shall follow the hearing process as outlined in Section
36534 of the law. At the public hearing the City Council shall hear and consider all
protests. If written protests are received from hotel businesses in the district paying fifty .
percent (50%) percent or more of the annual assessment, no further proceedings to
continue the levy of assessments shall take place. The protests shall be weighted based
upon the annual assessment for the prior year by each hotel business.
12.42.070. Imposition of Assessment. The City Council hereby levies and
imposes and orders the collection of an additional assessment to be imposed upon hotels
in the district described above, which shall be calculated pursuant to Section 12.42.050
above. Such assessments shall begin on August 1, 2008. Assessments shall be reported
and remitted to the City in same manner as for the Transient Occupancy Taxes pursuant
to Chapter 3.04. The Department of Finance and IT may from time to time promulgate
rules to implement the chapter 12.42.
� — fie
Ordinance No. (2008 Senes)
ATTACHMENT I
Page 4
12.42.080. Use of Revenue. The improvements and activities to be provided by
the TBID will be funded by the levy of the assessments. The revenue from the levy of
assessments within the TBID shall not be used to provide improvements or activities
outside the TBID or for any purpose other than the purposes specified in the resolution of
intention. All funds shall be expended consistent with the purposes of this act. Funds
remaining at the end of any TBID term may be used in subsequent year in which TBID
assessments are levied as long as they are used consistent with the requirements of this
section. The City Council shall consider recommendations made by the TBID Board
created by Section 12.42.100 of this chapter as to the use of assessment revenue.
12.42.090. Delinquency, Penalty and Interest. Any hotel that fails to remit any
assessment imposed by this ordinance within the time required shall pay a penalty in
accordance with the policies, regulations and ordinances of the City of San Luis Obispo.
Any and all remedies available to the City of San Luis Obispo for non payment of
assessments or taxes shall be applicable in the event of non payment of an assessment
under this chapter.
12.42.100 Advisory Body. An advisory body comprised of five (5) members is
hereby created to carry out the functions of an advisory board under Section 36530 of the
law. Said advisory body shall be referred to as the Tourism Business Improvement
District Board or TBID Board. The members of the TBID Board shall be appointed
following the City's recruitment guidelines for advisory bodies. All applicants and
members must be operators of hotels within the district, or employed by an operator of
such a hotel. The length of the term for each individual member of the TBID Board shall
follow the guidelines of all City advisory bodies and is limited to eight (8) subsequent
years. Members of the TBID Board shall serve at the pleasure of the City Council and
may be removed by the City Council at any time. If a member no longer represents the
lodging establishment for which he or she was selected to the TBID Board, his or her seat
will be vacated and a new member will be appointed. The TBID Board shall review the
implementation of this chapter, the implementation of programs and activities funded
through this chapter, and advise the City Council on the amount of the district's
assessments and on the services, programs, and activities to be funded by the
Assessments, and shall perform such other duties as required by the law, including
preparing the annual report required by Section 36533 of the law. The annual report shall
be submitted to the City Council no later than 90 days before the new budget year. The
City Council shall ensure that the TBID Board has timely access to all public information
regarding collection, disbursement, and uses of the funds collected under the terms of this
ordinance
SECTION 4. If any section, subsection, sentence, clause or phrase of this ordinance is
for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of-the remaining portions of the ordinance.
The City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more of
0 -7
Ordinance No. (2008 Series) ATTACHMENT
Page 5
the. sections, subsections, sentences, clauses or phrases hereof be declared invalid or
unconstitutional.
SECTION 5. A summary of this ordinance, together with the names of Council
members voting for and against it, shall be published at least five (5) days prior to its final
adoption, in The Tribune, a newspaper published and circulated in the City of San Luis Obispo.
This ordinance shall go into effect at the expiration of thirty (30) days after its final adoption.
INTRODUCED on the day of 2008, AND FINALLY
ADOPTED by the Council of the City of San Luis Obispo on the day of
2008, on the following roll call vote:
AYES: .
NOES:
ABSENT:
Mayor David F. Romero
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
Jonathan P. Lowell, City Attorney
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ATtACHMENT Z
RESOLUTION NO.9972(2008 Series)
RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING ITS INTENTION
TO ESTABLISH THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT
DISTRICT,TO ESTABLISH THE BASIS FOR AND TO LEVY THE ASSESSMENT
FOR THE DISTRICT,AND TO SET DATES FOR THE PUBLIC HEARINGS ON THE
DISTRICT AND THE PROPOSED ASSESSMENT
WHEREAS,the parking and Business Improvement Law of 1989, sections 36500 et seq.
of the Streets and Highways Code, authorizes cities to establish business improvement districts
for several purposes,one of which is promotion of tourism; and
WHEREAS,the businesses within the proposed City of San Luis Obispo Tourism
Business Improvement District have requested the City of San Luis Obispo to establish such a
self-assessment improvement district.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of San Luis
Obispo as follows:
a) The San Luis Obispo City Council proposes to form a parking and business
improvement district pursuant to the California Streets and Highways Code section
36500 et seq. (Parking and Business Improvement Law of 1989)the proposed
boundaries shall encompass the City of San Luis Obispo.
b) The proposed improvement district shall be called the City of San Luis Obispo
Tourism Business Improvement District.
c) The assessment levied by the Tourism Business Improvement District shall be used to
promote lodging at the hotels within the district and administer marketing programs
that increase overnight lodging.
d) The assessment will be levied and allocated by the City of San Luis Obispo.
e) The assessment is proposed to be levied on all "hotels", as that term is defined in San
_Luis Obispo Municipal Code section 3.04.020, to wit: any structure,or any portion of
any structure,which is occupied or intended or designed for occupancy by transients
for dwelling,lodging or sleeping purposes,and includes any hotel,inn,tourist home
or house,motel, studio hotel,bachelor hotel,lodging house,rooming house,
apartment house,dormitory,public or private club,mobile home or house trailer at a
fixed location,or other similar structure or portion thereof.The assessment shall be
based on two percent(2%)of gross room rent.
f) New hotels shall not be exempt from assessment.
R 9972
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Resolution No. 9972(2008 Series) ATTACHMENT 2
Page 2
g) The City of San Luis Obispo will hold Public Meeting to allow for public testimony
pursuant to Government Code section 54954.6 on May 20, 2008.
h) The first public hearing for comments on the proposed District and assessments is
hereby set for 7 P.M.Tuesday,June 3`d,2008 before the City Council of San Luis
Obispo at the City Council Chamber at 990 Palm Street, San Luis Obispo, California.
i) At the public hearing,the testimony of all interested persons for or against the
establishment of the District,the extent of the District, or the furnishing of specified
types of improvements or activities will be heard.
j) Any protest against the City of San Luis Obispo Tourism Business Improvement
District,or any aspect, may be made in writing.A protest may be withdrawn at any
time before the conclusion of the public hearing. Any written protest shall contain a
description of the business in which the person signing the protest is not shown on.the
official records of the City of San Luis Obispo as the owner of the business, then the
protest shall contain or be accompanied by written evidence that the person is the
owner of the authorized representative of the business. Any protest as to the regularity
or evidence of the proceedings shall be in writing and clearly state the irregularity or
defect to the City of San Luis Obispo at 990 Palm Street, San Luis Obispo,CA
93401.
k) 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
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 create 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.
BE IT,THEREFORE,FURTHER RESOLVED,the City Clerk is instructed to
provide notice of the as required by Government Code section 54954.6 as follows:
The City Clerk shall publish joint notice of both the public meeting and the public hearing,as set
forth in sections g and h above, begirming at least 45 days prior to the public hearing,by placing
a display advertisement of this Resolution of at least one-eighth page in a newspaper of general
circulation for three weeks pursuant to Government Code section 6063 and by mailing of a
complete copy of the Resolution of Intention by first-class mail to each business owner in the
area within seven days of the City Council's adoption of the Resolution of Intention. The City
Clerk shall also provide notice by a first-class mailing to those interested parties who have filed a
written request with the City for mailed notice of public meetings or hearings on new or
increased general taxes.
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Resolution No. 9972 (2008 Series) RlffACHMEN I L
Page 2
a) Mail a complete copy of this Resolution of Intention to each and every business that.
will be subject to assessment within seven(7)days of the adoption of the Resolution
by the City Council.
Upon motion of Vice Mayor Brown, seconded by Council Member Mulholland and on the
following roll call vote:
AYES: Council Members Carter, Mulholland, and Settle, Vice Mayor Brown and
Mayor Romero
NOES: None
ABSENT: None
The foregoing resolution was adopted this 15'h day of April 2008.
dog
�W
Mayor David F.Romero
ATTEST:
Audrey Hooper
City Clerk
APPROVED AS TO FORM:
J nathan P well
City omey
ll
city or
san tuts oBispo ATTACHMENT 3
April 18, 2008
Notice of Citywide Tourism Business Improvement District
On April 15,2008 the San Luis Obispo City Council voted unanimously for the adoption of a Resolution
of Intention to create a citywide Tourism Business Improvement District for the purpose of increasing
industry investment in tourism marketing in San Luis Obispo.
The purpose of forming a business improvement area under the Parking and Business Improvement Area
Law of.1989 (State Streets and Highways Code) 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 drive tourism and directly benefit
the operators of lodging establishments in the district. State law specifically states that the businesses and
properties within the business and improvement area have to be benefited by activities funded by the
proposed assessments.In the case of an area formed to promote tourism, only businesses that benefit from
tourism may be assessed.
The enclosed adopted resolution sets forth: ---Key Council Meeting Dates
• the governing State Law section Public Meeting
• the name of the district Receive public comments on the
• the purpose and use of the assessment proposed assessment increase
• the district boundary May 20,2008, 7:00 PM
• the affected industry City Council Chambers
• date of the public meeting 990 Palm Street
• date of the'public hearing Public Hearing for Introduction
• the negative protest process Consider written and oral protests
by business owners
By State Law, the Council has to allow for public testimony and June 3, 2008, 7:00 PM
public protest in two separate meetings. Public testimony is City Council Chambers
scheduled for May 20, 2008 and oral protests can be made at the 990 Palm Street
June 3, 2008 public hearing. Written protests must be received
by the City at or before the public hearing and must include a
sufficient description of the business to identify the owner and assure that it is located in the
assessment area. Written protests must be submitted to the City Clerk, 990 Pahn Street, San Luis
Obispo, CA, 93401. If there is no valid protest,Council will introduce an ordinance establishing the
district and levying the assessment on June 3, 2008.
Current Proposal before Council.The current proposal before Council will levy an assessment of
2% of gross room rate which will be collected together with the City's Transient Occupancy Tax
invoice.
As per State Law, the Council will appoint an advisory body for recommendation of the assessment
use. The proposed advisory body will consist of industry members and will appoint one member to
also serve on the Promotional Coordinating Committee.
Please call Brigitte Elke at 805 781-7151 for more information regarding the formation process and
scheduled public meeting and public hearing.
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Promotional Coordinating Committee ��„VI191GI�1 4
Minutes
Wednesday, October 24, 2007
6:30 pm
City Hall
Council Hearing Room
990 Palm Street
CALL TO ORDER: Chair Cate Norton 6:30 pm
PRESENT: T. Conner, Babb, Sexton, J. Conner, Nicklas
STAFF PRESENT: Brigitte Elke, Principal Administrative Analyst
PUBLIC COMMENT
No public comment.
CONSENT AGENDA
ACTION: Moved by Sexton/Nicklas to approve the minutes from September 12, 2007
as presented. Motion carried 6:0
Moved by Babb/Sexton to approve consent agenda as presented
Motion carried 6:0
PRESENTATIONS
1. PUBLIC RELATIONS CONTRACT— CHAMBER OF COMM QUARTERLY
REPORT
Linsey Miller presented the PR and Tourism er efforts over the last three months. In this
time period, the Jeep King of the Moun race was held successfully and coverage aired on
September 23, 2007. The City's t sm commercial was shown three times during
September after NFL game a Chamber successfully placed three articles in travel
magazines including t ew York Times travel section.
They are currentl orking on the upcoming Tour of California and so far 450 hotel rooms
have been b ed.
The Vis' Center saw 19,872 visitors during the last quarter and the website had 79,466
ind' ual visits. These numbers are significantly up from 2006.
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ATTACHMEM 4
BUSINESS ITEMS
1. SAN LUIS OBISPO TOURISM IMPROVEMENT DISTRICT
John Conner showed the Committee the presentation given to. Council on September 18,
2007 and reiterated the desire by the lodging industry to move forward with a citywide
Tourism Improvement District.
Brigitte Elke followed-up with the process that the State Law requires. The City Attorney
further explained the establishment of an advisory body and the possible use of the
assessment funds.
After hearing public comment from Jonni Biaggini on the current status of the countywide
tourism improvement district, the Committee discussed the proposed initiative.
All committee members where in favor of defining "the City's own destiny" and keeping
control with the City. They also felt that creating further delay in generating more marketing
funds would not be advantageous for the tourism industry. However, they strongly suggested
that the Promotional Coordinating Committee be the advisory body to avoid creating
conflicting promotional efforts for City promotions. They suggested amending the resolution
to provide for an increase in members and that at least 3 members would be from the lodging
industry.
ACTION: Moved by Nicklas/T. Conner to recommend to Council to proceed with the
Resolution of Intention to form a citywide tourism business district, given that
the PCC, in an amended form, be the appointed advisory body.
Motion carried 4:0
Sexton abstained
John Conner recused himself.
PCC LIAISON REPORTS
Cate Norton mentioned that she contacted all of her liaison groups, but has not heard back
from any of them. Terry Conner and Cathie Babb mentioned the same problems with their
respective organizations.
The meeting adjourned at 7:58 pm to the November 14, 2007 meeting.
Page 1 of 1
C'I �
Council, SloCity
From: Georgia [heritageinnslo@sbcglobal.net] Sent: Mon 6/2/2008 10:45 PM
To: Council,SloCity
Su RECEIVED
Subject: Business Improvement District
Attachments: JUN 0 .32U08
SLO CITY CLERK
Dear Council Member,
I am opposed to forming a Business Improvement District which will be
funded by a tax imposed on the lodging industry.
Our guests spend more on restaurant meals than they do for a room
at Heritage Inn. ( A very nice&affordable home away from home !)
They rent cars, kayaks, bicycles, and even airplanes in San Luis _ L
VCAO
OUNCIL CDD DIR
Obispo. They shop in our wonderful downtown, enjoy Farmers' Market AO
on Thursday nights and visit our parking friendly shopping centers. .P FIN DIR
$FIRE CHIEF
They read the New Times,Tribune, and Real Estate Publications, enjoy a BATTORNEY PW DIR
massage, haircut, pedicure, etc. They visit the Wineries, Antique 0"CLERK/ORIG POLICE CHF
Shops, and Theaters. They often ask me for directions to a grocery ❑ DEPT HEADS REC DIR
store or pharmacy. On occasion, a lovely piece of jewelry has been � —_ UTIL DIR
presented, and accepted here ! (Champagne optional ! Would you ��— "--�� HR DIR
like to know which restaurant is most popular for proposals ?)
Why do I have to be the bad guy who charges them more to stay here cffc+
than they might pay just a few miles North or South ? I believe we
should be doing more to entice visitors to our unique location, but I
think everyone who benefits from tourism should be responsible for
promoting tourism !
RED FILE
I have only 7 rooms to rent. This"improvement will present a MEWING AGENDA
serious burden and negative impact on my business. I am reminded of DAT � 3 0r<ITEM #
the old fable of the Goose and the Golden Egg ! Is there some way to
opt out of this unwanted tax ?
Thank you for your consideration.
Georgia Adrian,
Heritage Inn Bed and Breakfast
https://mail.slocity.org/exchange/slocitycouncil/InboxBusiness%201mprovement%2ODisf ri... 6/3/2008