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Home My WebLink About2025-06-10; City Council; 12; Adoption of Ordinance No. CS-494 Repealing Chapter 3.37 Carlsbad Tourism Business Improvement DistrictCA Review AZ Meeting Date: June 10, 2025 To: Mayor and City Council From: Geoff Patnoe, City Manager Staff Contact: Morgen Fry, Assistant City Clerk morgen.fry@carlsbadca.gov, 442-339-2819 Subject: Adoption of Ordinance No. CS-494 Repealing Chapter 3.37 Carlsbad Tourism Business Improvement District Districts: All Recommended Action Adopt Ordinance No. CS-494 repealing Chapter 3.37 of the Carlsbad Municipal Code and disestablishing the former Carlsbad Tourism Business Improvement District. Executive Summary The recommended action adopts Ordinance No. CS-494, repealing Chapter 3.37 of the Carlsbad Municipal Code and disestablishing the former Carlsbad Tourism Business Improvement District. On April 18, 2023, the City Council formed a new Carlsbad Tourism Business Improvement District under the Property and Business Improvement District Law of 1994. (California Streets and Highways Code Section 36600 et seq.1). This district replaced the former Carlsbad Tourism Business Improvement District, which was formed under an older state law that limited efficiency and effectiveness. With a replacement program in place, the former district’s assessment was discontinued on June 30, 2023. All remaining funds have been exhausted and the former district’s Advisory Board approved a recommendation to the City Council to disestablish the district. Explanation & Analysis Ordinance No. CS-494 was introduced and first read at the City Council meeting held on May 20, 2025. The City Council voted 5-0 to introduce Ordinance No. CS-494, repealing Chapter 3.37 of the Carlsbad Municipal Code and disestablishing the former Carlsbad Tourism Business Improvement District. On June 27, 2023, the old district’s Advisory Board approved an amendment to extend the contract with Visit Carlsbad to execute the same program of work until the remaining former 1 Et seq, or et sequentes, means all of the codes in the section, not just the single one cited. June 10, 2025 Item #12 Page 1 of 5 Docusign Envelope ID: 46A07CA5-1A4E-4FA0-96F3-5AF5E1213956 district funds were fully expended. As of June 30, 2024, all funds collected under the former district were expended, and as of October 2024, all services paid for by those funds were rendered by Visit Carlsbad. The old district’s Advisory Board met for the final time on Nov. 13, 2024, to hear a report on services rendered and confirm that all funds had been expended. At that meeting, the advisory board adopted a resolution providing a recommendation to the City Council to disestablish the old district. This second reading allows the City Council to adopt the ordinance. Fiscal Analysis Since the old district’s services and operations were replaced by a similar program under the new Carlsbad Tourism Business Improvement District, there is no immediate fiscal impact on the city from approving the disestablishment of the no-longer-needed district. Next Steps The City Clerk’s Office will have the ordinance, or a summary of the ordinance, published in a newspaper of general circulation within 15 days following adoption of the ordinance. The ordinance will be effective 30 days after its adoption. Environmental Evaluation The adoption of an ordinance repealing Carlsbad Municipal Code Chapter 3.37 and disestablishing the Carlsbad Tourism Business Improvement District established in 2005 is exempt from environmental review under CEQA Guidelines Sections 15061(b)(3) and 15378(b)(5) as it can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment. Exhibits 1. Ordinance No. CS-494 June 10, 2025 Item #12 Page 2 of 5 Docusign Envelope ID: 46A07CA5-1A4E-4FA0-96F3-5AF5E1213956 Exhibit 1 ORDINANCE NO. CS-494. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REPEALING CHAPTER 3.37 OF THE CARLSBAD MUNICIPAL CODE AND DISESTABLISHING THE FORMER CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, the City of Carlsbad established the Carlsbad Tourism Business Improvement District on Nov. 15, 2005 (Old CTBID) under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code Section 36500 et seq.) (“89 Law”); and WHEREAS, Ordinance No. NS-778 enacted the Carlsbad Municipal Code Chapter 3.37 – Carlsbad Tourism Business Improvement District, which codified the Old CTBID; and WHEREAS, as the Old CTBID’s budget and capabilities grew, it needed a modern statutory structure to allow for enhanced long-term planning and continuity of operations; and WHEREAS, the City Council formed a new Carlsbad Tourism Business Improvement District on April 18, 2023 (New CTBID) under the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et seq.) (“94 Law”) as effectuated in City Council Resolution No. 2023-118; and WHEREAS, the New CTBID will continue to promote tourism and visitor services with Visit Carlsbad as the contracted Owners’ Association as defined under the 94 Law; and WHEREAS, as a result of the New CTBID’s establishment, the Old CTIBID wound down operations and exhausted its remaining funds as of October 2024; and WHEREAS, as a result of disestablishing the Old CTBID, Chapter 3.37 of the Carlsbad Municipal Code will become obsolete; and WHEREAS, the City Council has the authority to disestablish the Old CTBID under California Streets and Highways Code Section 36550; and WHEREAS, on April 22, 2025, the City Council adopted Resolution No. 2025-084 (“Resolution of Intention”) declaring its intention to disestablish the Old CTBID, repeal Chapter 3.37 of the Carlsbad Municipal Code, and set a public hearing for May 20, 2025 at 5:00 p.m., or as soon thereafter as the matter can be heard, at Carlsbad City Hall, 1200 Carlsbad Village Drive, Carlsbad, California, 92008; and WHEREAS, in accordance with California Streets and Highways Code Section 36523, city staff caused a complete copy of the Resolution of Intention to be published in a newspaper of general circulation in the city, and within seven (7) days following the adoption of the Resolution of Intention June 10, 2025 Item #12 Page 3 of 5 Docusign Envelope ID: 46A07CA5-1A4E-4FA0-96F3-5AF5E1213956 furnished a complete copy via first-class mail to each business owner assessed within the Old CTBID; and WHEREAS, on May 20, 2025, a public hearing was held at Carlsbad City Hall, 1200 Carlsbad Village Drive, Carlsbad, California, 92008, where evidence, both written and oral, was presented to, and considered by, the City Council during the public hearing. NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains as follows that: 1. The above recitations are true and correct. 2.That the adoption of an ordinance repealing Carlsbad Municipal Code Chapter 3.37 and disestablishing the Carlsbad Tourism Business Improvement District established in 2005 is exempt from environmental review under CEQA Guidelines Sections 15061(b)(3) and 15378(b)(5) as it can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment. 3.Carlsbad Municipal Code Chapter 3.37, Carlsbad Tourism Business Improvement District, is repealed in its entirety. 4.Pursuant to California Streets and Highways Code Section 36550, the City Council disestablishes the Carlsbad Tourism Business Improvement District. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. June 10, 2025 Item #12 Page 4 of 5 Docusign Envelope ID: 46A07CA5-1A4E-4FA0-96F3-5AF5E1213956 INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 20th day of May, 2025, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 10th day of June, 2025, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. APPROVED AS TO FORM AND LEGALITY: _________________________________ CINDIE K. McMAHON, City Attorney _______________________________________ KEITH BLACKBURN, Mayor _______________________________________ SHERRY FREISINGER, City Clerk (SEAL) June 10, 2025 Item #12 Page 5 of 5 Docusign Envelope ID: 46A07CA5-1A4E-4FA0-96F3-5AF5E1213956