HomeMy WebLinkAbout2014-11-18; City Council; 21780; Report Two-Year Term of Carlsbad Golf Lodging Business Improvement DistrictCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
21.780
11-18-14
CM
REPORT ON INITIAL TWO-YEAR TERM
OF THE CARLSBAD GOLF LODGING
BUSINESS IMPROVEMENT DISTRICT
DEPT.DIRECTOR
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Receive report.
ITEM EXPLANATION:
On November 27, 2012, the City Council adopted Ordinance No. CS-194 forming the Carisbad
Golf Lodging Business Improvement District (CGLBID) pursuant to the Parking and Business
Improvement Law of 1989. The ordinance authorized the levying of $2 per-night assessment on
each occupied room of the properties within the city that elected to be part of the district. The
proceeds of this additional hotel business assessment shall be used to promote golf-related
tourism within the boundaries ofthe CGLBID. The district started January 1, 2013 and is nearing
the end of the initial two year period. This report is summarizing for Council the results of the first
two years of the district.
For the period January 1, 2013 through the end of September 2014, total assessment revenue
for the district was $639,950. This revenue was remitted by the three hotels that initially opted
into the district; the Grand Pacific Palisades Hotel, the Park Hyatt Aviara and the Sheraton
Cartsbad Resort. It also includes Cartsbad by the Sea Hotel which opted into the district as of
July 1, 2014. The chart below shows the amount collected from each hotel and how much has
been remitted to each hotel for qualifying golf related marketing expenses:
Available Expenses Account
Total Less 4% Deposits Paid Balance
Property Deposits Admin Fee (A) (B) (A)-(B)
Grand Pacific Palisades Hotel 92,840 3,714 89,126 75,666 13,460
Park Hyatt Aviara 269,362 10,774 258,588 241,465 17,123
Sheraton Carisbad Resort 261,712 10,468 251,244 241,072 10,171
Carlsbad by the Sea 16,036 641 15,395 15,395
$639,950 $25,598 $614,352 $558,203 $56,149
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753 chervl.qerhardt(ajcartsbadca.qov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED •
DENIED •
WITHDRAWN •
AMENDED •
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
COUNCIL RECEIVED THE
REPORT/PRESENTATION
OTHER-SEE MINUTES •
Page 2
Based on information supplied by the participating hotels, golf rounds sold by these hotels
during this initial two year period were approximately 7,679 rounds (at The Crossings and
Aviara Golf Club) which equates to approximately $1.5 million in golf course and miscellaneous
revenue. This has also generated in excess of $1,071,000 in room revenue for golf related
overnight stays for this same period. The following are some examples of marketing initiatives
the participating hotels have funded with the CGLBID assessments:
• Advertising in various golf magazines including Golf Magazine, Phoenix Magazine,
California Golf Magazine, Southland Golf Magazine, Golf Digest. These magazines are
distributed throughout the United States as well as internationally especially in Asia.
• Inflight video and magazine on Japan Airiines
• Hired a group golf sales tourism manager
• Golf equipment to transport guests from hotel to golf course
• Creation of a new golf and resort video
• KIA Classic broadcasting and promotion
The participating hotels have spent a lot of time and money over the last two years enhancing
the recognition of Cartsbad as a golf destination. Most of this effort was made possible by the
additional funding provided by the CGLBID. In order to continue to build golf tourism as a future
stream of revenue for the Cartsbad courses, hotels and community continued funding from the
CGLBID assessment would be necessary.
FISCAL IMPACT:
None.
ENVIRONMENTAL IMPACT:
The proposed action does not qualify as a "project" under the California Environmental
Quality Act (CEQA) per State CEQA Guidelines Section 15378 as it does not result in a direct
or reasonably foreseeable indirect physical change in the environment.
EXHIBITS:
None.