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Home My WebLink About2011-07-13; Carlsbad Tourism Business Improvement District; 07-11-70; Proposed Carlsbad Marketing DistrictCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 07-11-70 Proposed Carlsbad Marketing District CTBID STAFF {"^^^ MTG. 7-13-11 Proposed Carlsbad Marketing District GENERAL COUNSEL Qgpj^ City Manager Proposed Carlsbad Marketing District RECOMMENDED ACTION: Adopt Resolution No. 2011-6 directing staff to fonward Exhibit 2, to the City Council with a recommendation to commence the legal proceedings for the fonnation of a second business improvement district in Carlsbad known as the Carisbad Marketing District ("CMD"). ITEM EXPLANATION: At the CTBID's March 2"^* Board meeting, the Board discussed whether or not to consider increasing the CTBID assessment. The Board decided that due to current economic conditions it did not think there would be the support to increase the assessment at this time. However, Board Chair Tim Stripe said that his group would be interested in looking at other options. At the April 2011 CTBID Board meeting, a proposed Carisbad Redemption Mariceting District was presented to the CTBID Board. The Board chose not to take any action at that meeting as they had some concerns over limiting the district to just redemption stay hotels as well as various other issues. Since the April meeting, Rick Mansur, with Azul Hospitality Group, has reached out to the hotels to address their concerns. As a result, the proposed district has been revised and the attached resolution has been drafted which would commence the legal proceedings to fonn a second business improvement district in Carlsbad to be known as the Carisbad Marketing District (CMD). This proposed CMD would include all lodging businesses within the City of Carisbad that have a brand initiative and have elected to participate in such a program, and those independent lodging businesses that have elected to participate in marketing programs provided by approved vendors. The proposed assessment to be levied is $2.00 per occupied room night. The CMD would have a separate advisory board from the CTBID which would be appointed by the City Council. Exhibit 2 is the proposed City Council resolution that would be presented to the City Council for the creation of the new CMD. FISCAL IMPACT: None. ENVIRONMENTAL IMPACT: This action does not approve any projects that will have a physical adverse affect on the environment so it falls within the general rule under CEQA that this is not a project (CEQA Regulation 15738 (b)). (2. EXHIBITS: 1. Resolution No. 2011-6 directing staff to fonvard Exhibit 2 to the City Council with a recommendation to commence the legal proceedings for the formation of a second business improvement district in Carisbad known as the Carlsbad Marketing District. 2. Proposed Resolution of the Carlsbad City Council declaring intention to fonn the Carisbad Mariceting District. DEPARTMENT CONTACT: Cheryl Gertiardt, 760-602-2446, chen/l.aerhardt<S>carlsbadca.gov FOR CITY CLERKS USE ONLY. CONTINUED TO DATE SPECIFIC BOARD ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF O WITHDRAWN • OTHER-SEE MINUTES • AMENDED • /3 EXHIBIT I 1 RESOLUTION NO. 2011-6 2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT ^ DISTRICT, DIRECTING STAFF TO FORWARD PROPOSED 4 RESOLUTION TO CITY COUNCIL TO FORM A SECOND BUSINESS IMPROVEMENT DISTRICT 5 5 WHEREAS, the City Council of the City of Carlsbad adopted Ordinance No. NS-778 7 enacting Chapter 3.37 of the Carlsbad Municipal Code on November 15, 2005 thereby creating g the Carlsbad Tourism Business Improvement District (CTBID); and 9 WHEREAS, the primary purpose of the CTBID is to promote tourism and provide 10 services to visitors to the City of Carlsbad; and 11 WHEREAS, the CTBID Board has considered the formation of a second district known 12 as the Carlsbad Marketing District (CMD); and J 3 WHEREAS, the formation of the CMD would need to be commenced by resolution of 14 the Carlsbad City Council; and 15 WHEREAS, the CTBID Board has reviewed the proposed resolution shown at Exhibit 2 15 which defines the CMD district; and 17 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors ofthe Carlsbad 1 g Tourism Business Improvement District, as follows: 19 1. That the above recitations are tme and correct. 20 2. That the CTBID staff is directed to forward the proposed resolution to the City 21 Council with a recommendation to commence the legal proceedings to form a 22 second business improvement district in Carlsbad known as the Carlsbad Marketing 23 District. /// 24 25 26 27 28 /// /// /// /// N/ofc PASSED, APPROVED, ;JOI^ ADOPTED at a regular meeting ofthe Board of Directors of the Carlsbad Tourism Business Improvement District on the JZ> day of 2011, by the following vote to wit: AYES: Ofrip^, S+ieb^t^n^ NOES: "^JLdsLrrcjL^ H^OJ^tLcluj Cctn^c^ ABSENT: ly\<'(lorr)nttX, l4z>iAJCorci C^<fY\^S TIM STRIPE Chairperson ATTEST: LORRAINE WOOD Pro Tem Clerk ofthe Carlsbad Tourism Business Improvement District EXHIBIT 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD DECLARING ITS INTENTION TO FORM THE CARLSBAD MARKETING DISTRICT, FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND PUBLIC HEARING THEREON, AND GIVING NOTICE THEREOF WHEREAS, the City of Carisbad ("City") desires to establish a Business Improvement District ("BID") which shall be called the Carisbad Marketing District ("CMD") and levy an assessment on lodging businesses within the CMD boundaries; and WHEREAS, the Parking and Business Improvement Area Law of 1989, Streets and Highways Code §36500 et seq., authorizes cities and counties to establish padcing and business improvement areas for the purpose of tourism promotion; and WHEREAS, lodging business owners within the proposed CMD have requested the Carisbad City Council establish such an improvement area; and WHEREAS, lodging businesses have facijitated the request to form the CMD and the City Council desires to establish an advisory board to make reports and recommendations to it regarding the activities provided by the proposed CMD. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carisbad as follows: 1. The recitals set forth herein are true and correct. 2. The City Cbimcil declares its intention ta form the CMD and to levy and collect assessments within the CNifei boundaries pursuant to ih^ Parking and Business Improvement Area Law of 1989, Streets and highways C^ode The boundaries ofthe CMD shall be the ;;b^^^ City; otCarlsbad. : 3 . The name of the area shall be the Carisbad Marketing District. 4. The City Council intends to form the CMD to administer marketing and visitor programs to promote participating lodging businesses as visitor destinations, to include branding initiatives for branded assessed hotels, and selected marketing programs through approved vendors for independent assessed hotels, in order to fund programs and activities that benefit lodging businesses \^thin the boundaries of the district. 5. The proposed CMD will include all lodging businesses within the City of Carlsbad that have a brand initiative program and have elected to participate in such a program, and those independent lodging businesses that have elected to participate in marketing programs provided by the approved vendors. The assessment is proposed to be levied on all participating lodging businesses, existing and in the future, within the CMD based upon $2.00 per occupied paid room per night. Except where funds are otherwise available, an assessment will be levied annually to pay for the programs and activities within the district. EXHIBIT 2 New lodging businesses within the CMD boundaries will not be exempt from the levy of assessment as authorized by Streets and Highways Code §36531. The CMD shall not include stays over thirty days, or stays by any federal or state employee when on govemment business. 6. The total CMD assessment collected in year one is estimated to be $385,000. The funds raised shall be spent to promote brand initiatives, promote tourism within the boundaries of the CMD by the approved vendors, and pay for related administrative costs. 7. Funds remaining at the end of any CMD term may be used in subsequent years in which CMD assessments are levied as long as they are used consistent with the requirements of this Resolution. Upon withdrawal of any business fi-diil the CMD, any remaining funds collected from that business will be spent consistent with the provisions of this resolution and direction by the advisory board. Upon termination 6f the CMD, any remaining funds will be spent consistent with the provisions of this respliition and direction by tile advisory board. 8. The City of Carlsbad will collect the assessment on a monthly basiS: from the lodging businesses within the CMp, ::;The City of Carisbad -^yill retain two percent (2%) of the amount collected to cover costs of cbllection. Each lodging business assessed by the CMD shallv-submit quarteriy a request for reimbursement along with an accounting of expenses for CMD activities to the advisory board. The advisbry board shali i review thb reirribursement request and the quarterly accounting for compliance with CMDiregiilations and shall report the amount expended on allowed CMD activities ;tb-: the City Council. To the extent of available funds, the City Council may authorize: said reimbursement. The City Council shall consider the recommendations of the advisory board as to the use of the funds so collected, consistent with the intent of the CMD. The . expense reimbursements shall not exceed the assessment paid by that lodging property, mihus ^two percent plus the portion of any additional administration costs attributable to that property. 10. The City Council shall tnake all appointments to the CMD advisory board. There shall be at least three,: and no morel than seven, members appointed to the advisory board. All board members, unless required to constitute a minimum of three members, shall be representatives of assessed lodging businesses. The advisory board shall develop and maintain the list of approved vendors for purposes of the marketing programs provided to the independent assessed hotels. 11. The CMD advisory board shall submit an annual report, which shall include a budget for operations and an identification of the marketing efforts to be undertaken and approved vendors to be utilized by the CMD for the ensuing calendar year, to the Carlsbad City Council pursuant to Streets and Highways Code §36533. The annual report will include a listing of the lodging businesses proposed to be included in the CMD for the following year EXHIBIT 2 and a signed affirmation of intent to be included in the CMD for the following year from each business. 12. The time and place for a public meeting for comments on the proposed CMD and the levy of assessments are set for the City Council chambers located atl200 Carisbad Village Drive, Carisbad, CA 92008. 13. The time and place for the public hearing to fonn the CMD and levy assessments are set for _ m the City Council chambers located at 1200 Carlsbad Villace Drive Carlsbad, CA 92008. 14. At the public meeting and public hearing the tesUmbny of all interested persons for or against fonning the CMD, the extent of the CMD, or the furnishing of specified types of improvements or activities will be heard. 15. A protest against forming the CMD, theextent ofthe CMD, or the furnishing of a specified type of program or activity, as provided iri Streets and Highways Code §36524, may be made in wnting. To count in a protest against the 6^ must be made in writing A written protest may be withdrawn^ in writing, at anyltime before the conclusion ofthe public hearing. Each written protest shall contain a descrlpiion ofthe business in which the pereon signing the protest is interestedvisuffidehi to idemiiy th^ business and its address. If the person signing the protest is not shbwn on tifie' pfficial recoids of the City of Carisbad as the owner of die businbss. then the prd^st shall bonttih or be accompanied by written evidence that the person is the owner ofthe biisii^p If the oWner ofthe business is a corporation, LLC, partnership or other legal entity, the authorized representatives for the entity shall be authori2^d to sigiith^ pnDtest::^ A^^^ the regularity or evidence ofthe proceedings shall be :in;:vvriting aiid ci^^ iri%ilarity or defect to which objection is made Wntten protests inust be received by tfibClerk ofthe City of Carlsbad before the close ofthe public hearing scheduled herein, and may be delivered or mailed to the City Cleric at 1200 Carlsbad Village Driye, Carlsi)iBld,CA 92008. 16. If, at the conclusion ofthe public hearing, there are of record written protests by the owners of businesses within the CMD that will collectively pay fifty percent or more of the total CMD assessment no fiirther proceedings to form the CMD shall occur for a period of one year from the date of the finding of a majority protest. If the majority of written protest is only as to a proposed improvement or activity, then that type of improvement or activity shall not be included in the CMD. 17. Further information regarding the proposed CMD may be obtained from the City Clerk, at 1200 Carisbad Village Drive, Carisbad, CA 92008. 18. The City Clerk is instmcted to provide notice ofthe public meeting and public hearing as follows; EXHIBIT 2 a. Publish this Resolution of Intention in a newspaper of general circulation in the City of Carlsbad at least seven days before the hearing; and b. Mail a complete copy of this Resolution of Intention to each and every business owner proposed to be assessed in the CMD within seven days ofthe adoption of this Resolution. 19. This resolution shall take effect immediately upon its adoption, and the City Clerk shall certify the vote adopting this resolution. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council held on the day of , , by the followiiig vpte: AYES: NAYES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk /9