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HomeMy WebLinkAbout2022-12-20; Carlsbad Golf Lodging Business Improvement District; ; Reimbursement RequestCARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT Staff Report Meeting Date: Dec. 20,2022 Subject: Reimbursement Request Recommended Action 1. Adopt a resolution approving the reimbursement request from Cape Rey Hilton of golf- related expenses and authorizing staff to process the payment. 2. Adopt a resolution approving the reimbursement request from Carlsbad by the Sea of golf-related expenses and authorizing staff to process the payment. 3. Adopt a resolution approving the reimbursement request from Cassara of golf-related expenses and authorizing staff to process the payment. 4. Adopt a resolution approving the reimbursement request from Hilton Garden Inn of golf-related expenses and authorizing staff to process the payment. 5. Adopt a resolution approving the reimbursement request from Omni La Costa of golf- related expenses and authorizing staff to process the payment. 6. Adopt a resolution approving the reimbursement request from Park Hyatt Aviara of golf- related expenses and authorizing staff to process the payment. 7. Adopt a resolution approving the reimbursement request from Cape Rey Hilton of golf- related expenses and authorizing staff to process the payment. 8. Adopt a resolution approving the reimbursement request from Westin Resort Hotel of golf-related expenses and authorizing staff to process the payment. Item Explanation At its Nov. 27, 2012 meeting, the Carlsbad City Council adopted Ordinance No.CS-194 forming the Carlsbad Golf Lodging Business Improvement District (CGLBID). Hotels (as that term is defined in Carlsbad Municipal Code Section 3.12.020(1)) that choose to opt in and be a part of this district are assessed $2 per occupied room night, which is remitted to the city monthly through the current Transient Occupancy Tax collection process. The proceeds of the additional hotel business assessment must be used to promote golf-related tourism within the boundaries of the CGLBID, as well as marketing-related capital improvements such as golf-related sign age, golf-related equipment and to pay for the related administrative costs. Each assessed hotel determines how to spend the funds collected by its respective property, provided the Dec. 20,2022 Item #1 Page 1 of 455 expenditures are for an approved golf-related expense. Reimbursement of these expenses would be made quarterly upon approval by the CGLBID Advisory Board up to the amount collected per property minus administrative fees. At its April 17, 2013 meeting, the CGLBID Advisory Board approved a process for reimbursement. Base d on this process, staff has reviewed reimbursement requests submitted by Cassara, Park Hyatt Aviara, Sheraton Carlsbad Resort, Westin Resort Hotel, Carlsbad by the Sea, Omni La Costa, Cape Rey Hilton, and Hilton Garden Inn and is recommending the advisory board adopt the attached resolutions approving the reimbursement requests and authorizing staff to process the payment for the expenses up to the amount collected minus the 4% administration fees. Fiscal Impact As of Oct. 6, 2022, the CGLBID cash balance was $818,500. Each hotel's share of the cash balance is outlined below, and each hotel may submit reimbursements quarterly to draw from their account. If the request exceeds the amount available, the hotel may only be reimbursed up to their account balance. Property Account balance Cape Rey Hilton $ 165,045 $ Carlsbad by the Sea 127,711 Cassara 47,042 Hilton Garden Inn 157,893 Omni La Costa 202,514 Park Hyatt Aviara 86,267 Sheraton Carlsbad Resort 169,071 Westin Resort Hotel 7,460 Total $ 963,003 $ Environmental Impact Requested reimbursement 33,441 $ 46,215 43,661 3,456 168,936 226,980 39,728 43,887 606,305 $ Recommended reimbursement 33,441 46,215 43,661 3,456 168,936 86,267 39,728 7,460 429,165 Remaining balance $ 131,603 $ 81,495 3,381 154,437 33,578 129,343 533,838 This action does not constitute a "project" within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physica l change in the environment, or a reasonably foreseeable indirect physical change in the environment. Dec. 20, 2022 Item #1 Page 2 of 455 Exhibits 1. Resolution approving reimbursement for Cape Rey Hilton 2. Resolution approving reimbursement for Carlsbad by the Sea 3. Reso lution approving reimbursement for Cassara 4. Resolution approving reimbursement for Hilton Garden Inn 5. Resolution approving reimbursement for Omni La Costa Resort 6. Resolution approving reimbursement for Park Hyatt 7. Resolution approving reimbursement for Sheraton Carlsbad Resort 8. Resolution approving reimbursement for Westin Carlsbad Resort Dec.20.2022 ltem #1 Page 3 of 455