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Home My WebLink About2019-10-15; City Council; ; 2018-19 Carlsbad Business Improvement Districts Annual Reports.~ CITY COUNCIL V Staff Report Meeting Date: To: From: Staff Contact: Oct. 15, 2019 Mayor and City Council Scott Chadwick, City Manager Cheryl Gerhardt, Finance Manager cheryl.gerhardt@carlsbadca.gov or 760-602-2468 CAReview WC.- Subject: 2018-19 Carlsbad Business Improvement Districts Annual Reports. Recommended Action Accept Carlsbad Business Improvement Districts (BID) Annual Reports for fiscal year 2018-19. Executive Summary The BID Boards are required to present a report for City Council's review and approval each fiscal year for which assessments are to be levied and collected to pay the costs for the improvements and activities described in the report. At its June 11, 2019 meeting, the City Council approved the reports and continued the assessments into fiscal year 2019-20. Now that the financial records for fiscal year 2018-19 have been closed, staff is presenting a comprehensive annual report for each of the BIDs outlining the results and accomplishments for the fiscal year. Discussion The City of Carlsbad currently has two BIDs formed pursuant to the Parking and Business Improvement Law of 1989. The Carlsbad Tourism Business Improvement District (CTBID), formed on November 15, 2005 by the adoption of Ordinance No. NS-778, authorized the levying of $1 per room-night assessment of each occupied room within the city. The Carlsbad Golf Lodging Business Improvement District (CGLBID), formed on November 27, 2012 by the adoption of Ordinance No. CS-194, authorized the levying of $2 per room night assessment of each occupied room, of the properties within the city that have elected to be part of the district. The BID Boards are required to present a report for City Council's review and approval for each fiscal year for which assessments are to be levied and collected to pay the costs for the improvements and activities described in the report. These reports were approved by the City Council at its June 11, 2019 meeting. At the June 11, 2019 City Council meeting, staff indicated to City Council that once the fiscal year 2018-19 financial records were closed, they would return to City Council with a comprehensive annual report. These reports, shown in the attached Exhibits 1 and 2, outline the results and accomplishments for each of the districts during the fiscal year. Oct. 15, 2019 Item #12 Page 1 of 32 Staff is recommending that the City Council receive the reports. Fiscal Analysis The CTBID generated $1,359,921 in revenue in fiscal year 2018-19. The costs incurred by the CTBID during this same period were $1,416,319. The fund balance at the end of fiscal year 2018-19 was $640,313. The CGLBID generated $730,822 in revenue in fiscal year 2018-19. The costs incurred by the CGLBID during this same period were $783,825. The fund balance at the end of fiscal year 2018-19 was $291,861. Next Steps Staff will continue to monitor the Business Improvement Boards and will return to City Council with the fiscal year 2019-20 annual reports this time next year. Environmental Evaluation (CEQA) Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of the CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification and Outreach This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. 2018-19 CTBID Annual Report. 2. 2018-19 CGLBID Annual Report. Oct. 15, 2019 Item #12 Page 2 of 32 VISITOR CENTER In partnership with the City of Carlsbad, Visit Carlsbad operates the Carlsbad Information Center located at 400 Carlsbad Village Drive. This facility offers destination and area information to guests looking for more information on Carlsbad and the surrounding areas. Visitation for 2018/19 are as follows: VIC Stats -Ql & Q2 VIC Stats -Q3 & Q4 to Date FY2018 Total VIC Stat US Visitors 3,065 US Visitors 3,479 US Visitors 6,544 Foreign 502 Foreign 534 Foreign 1,036 Total Visitors 3,567 Total Visitors 4,013 Total Visitors 7,580 Email Received 1,020 Email Received 1,233 Email Received 2,253 Phone In 441 Phone In 566 Phone In 1,007 Lodging Referrals 78 Lodging Referrals 88 Lodging Referrals 166 LEGOLAND Referrals 80 LEGOLAND Referrals 96 LEGOLAND Referrals 176 # of Volunteers 319 # of Volunteers 281 # of Volunteers 600 Volunteer Hours 770 Volunteer Hours 737 Volunteer Hours 1,507 Top 5 States Represented Top 5 States Represneted Top States Represented Arizona, Colorado, Nevada, Arizona, Colorado, Minnesota, Arizona, Colorado, Minnesota, Washington, Illinois • Texas, Illinois Texas, Illinois Top 5 Foreign Countries Top 5 Foreign Countries Top 5 Foreign Countries Canada, Germany, UK, Canada, UK, Germany, Canada, UK, Germany, Australia, NL/SU (tie) Australia, Brazil Australia, Sweden California accounted for 2,029 Local 1,115 Oct. 15, 2019 Item #12 Page 14 of 32 Grand Pacific Resorts (three resorts) Expend itu res $286,712 Grand Pacific Palisades, $58,999 ■ Advertising/Marketing ■ Sales Personnel Salary Sheraton Carlsbad Resort, $180,999 1% 2% Westin Carlsbad Resort, $46,714 ■ Advertising/Marketing ■ Sales Personnel ■ Public Relations Carlsbad Golf Business Improvement District Annual Repo rt 2018-19 ■ Advertising/Marketing ■ Sales Personnel ■ Golf Related Equipment ■ Public Relations Oct. 15, 2019 Item #12 Page 31 of 32 2018-19 BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORTS Laura Rocha, Deputy City Manager, Administrative Services Cheryl Gerhardt, Finance Manager October 15, 2019 Purpose •To consider accepting the annual reports of the Business Improvement Districts (BID) for fiscal year 2018-19 Carlsbad Tourism BID Report •Formed in November 2005, effective January 2006. •$1 per room night assessment each transient occupancy in Carlsbad. •Proceeds from the assessment are spent to administer marketing and visitor programs and promote the City of Carlsbad as a tourism visitor destination. •CTBID Board sets budget. •CTBID contracts with Visit Carlsbad to promote Carlsbad as a visitor destination. CTBID Board Timothy Stripe No Term Limit Grand Pacific Resorts Board Chair term exp. 8/2020 Robert Rauch Term Expires 1/2021 Carlsbad By the Sea Board Vice-Chair term exp. 1/2021 Geoff Gray No Term Limit Park Hyatt Aviara Resort Brian Hughes No Term Limit Omni La Costa Resort and Spa Bill Canepa Term Expires 11/2021 Hilton Garden Inn Frank Idris Term Expires 11/2019 Legoland California Resort Randy Chapin Term expires 11/2019 Carlsbad Inn CTBID Budget Budget Actual Difference 2018/19 6/30/2019 Revenues: CTBID Assessment $1,320,000 $ 1,333,000 $ 13,000 Interest Earnings $ - $ 24,198 $ 24,198 Total Estimated Revenues $1,320,000 $ 1,357,198 $ 37,198 Expenditures: 2% Administrative Fee - $ 26,400 $ 26,643 $ 243 CCVB Contract $1,391,600 $ 1,244,575 $ (147,025) Staff support $ 26,400 $ 15,657 $ (10,743) CTBID Grants $ 200,000 $ 129,451 $ (70,549) Total Expenses $1,644,400 $ 1,416,326 $ (228,074) Visit Carlsbad $1,244,000 •Integrated Ad Campaign •Visit Carlsbad web site •Social Media •Email Marketing •Search Engine Optimization •Public Relations •Visitor Center •Group Sales Carlsbad Golf Lodging BID Report •Formed in Nov. 2012, effective Jan. 1, 2013 •$2 per room night assessment on properties that have opted into the district •Proceeds from the assessment are spent to promote golf- related overnight stays at participating hotels in Carlsbad. CGLBID Board Timothy Stripe Grand Pacific Resorts Board Chair, term exp. 11/2022 Geoff Gray Park Hyatt Aviara Resort Board Vice-Chair, term exp. 11/2020 Robert Rauch Term Expires 1/2021 Carlsbad By the Sea Brian Hughes Term Expires 1/2021 Omni La Costa Resort and Spa Tate Stull Term Expires 1/2021 The Crossings at Carlsbad CGLBID Properties Jan. 1, 2013 CGLBID DISTRICT FORMED Participating Properties: • Grand Pacifi c Pal isades • Sheraton Carlsbad • Park Hyatt Aviara Carlsbad by the Sea OPTS INTO DISTRICT July 1, 2014 July 1, 2017 Omni La Costa OPTS INTO DISTRICT Westin Carlsbad OPTS INTO DISTRICT July 1, 2018 CGLBID Expenditures 0 100 200 300 400 500 600 700 800 900 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Expenditure History Reimbursements Admin Costs$ In Thousands$783,825 CGLBID Efforts –Add campaigns in Golfweek, Ca Golf & Travel, AAA Westways, Golf Zoo –Golf brochures –Signage –Kia Classic Event –Promotional items with golf link on them –Sales staff selling golf destination at trade shows –Web page Reports available on-line •http://www.carlsbadca.gov/cityhall/clerk/meetings/boards/cglbid/annual.asp •http://www.carlsbadca.gov/cityhall/clerk/meetings/boards/ctbid/annual.asp Thank you