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Home My WebLink About2024-06-25; City Council; ; Disestablishing the Carlsbad Golf Lodging Business Improvement District Under the Parking and Business Improvement Area Law of 1989Meeting Date: June 25, 2024 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Matt Sanford, Economic Development Manager matt.sanford@carlsbadca.gov, 442-339-5987 Subject: Disestablishing the Carlsbad Golf Lodging Business Improvement District Under the Parking and Business Improvement Area Law of 1989 Districts: All Recommended Action Adopt a resolution declaring its intention to repeal Carlsbad Municipal Code Chapter 3.38 and disestablish the Carlsbad Golf Lodging Business Improvement District established in 2012 and fixing the time and place of a public hearing. Executive Summary 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 seq1) The new district established a benefit zone focused on golf-related programs that was intended to replace the Carlsbad Golf Lodging Business Improvement District, which was established under an older state law that imposed limitations on the district. The new district creates greater efficiencies in how Carlsbad is marketed for tourism. With a replacement program in place, the Carlsbad Golf Lodging Business Improvement District assessment was discontinued on June 30, 2023. However, before disestablishing the district, all remaining funds in the Carlsbad Golf Lodging Business Improvement District account had to be exhausted. All remaining funds have now been exhausted and the Carlsbad Golf Lodging Business Improvement District’s Advisory Board approved a recommendation to the City Council to disestablish the district. The City Council is being asked to consider a resolution declaring its intention to repeal Carlsbad Municipal Code Chapter 3.38, disestablish the Carlsbad Golf Lodging Business Improvement District and set a public hearing on July 23, 2024. Explanation & Analysis On Nov. 27, 2012, the City Council approved Ordinance No. CS-194 enacting Chapter 3.38 of the Carlsbad Municipal Code establishing the Carlsbad Golf Lodging Business Improvement District 1 Et seq, or et sequentes, means all of the codes in the section, not just the single one cited. June 25, 2024 Item #3 Page 1 of 5 CA Review AZ under the Parking and Business Improvement Area Law of 1989. (California Streets and Highways Code Section 36500 et seq.) The district provided a benefit to participating lodging businesses by collecting an assessment of 1% of daily room night costs from visitors to be used to market Carlsbad as a golf destination as well as the participating lodging businesses. Over time, the district grew to have eight participating lodging businesses. The newly established Carlsbad Tourism Business Improvement District and its corresponding assessment began operating on July 1, 2023, as was approved in what is called the district’s management district plan. The 1994 law allows for the creation of one or more benefit zones within the district to raise funds within a specific geographic area for different categories of businesses. The new district created such a benefit zone to focus on golf lodging, which includes an optional additional assessment for properties that opt into the golf benefit zone. Under the new district, lodging businesses may voluntarily elect to pay an additional 1% assessment in addition to the base assessment, which is consistent with the previous Carlsbad Golf Lodging Business Improvement District assessment. The funds raised through the additional assessment are used to promote golf-related programs and activities to increase room sales for those lodging businesses that opt-in to paying the additional assessment. The proceeds of the additional assessment pay for golf-related programs and services specifically tailored only to those paying the additional assessment. This zone effectively replaced the Carlsbad Golf Lodging Business Improvement District, creating greater efficiencies in operations and destination marketing in Carlsbad. Funds that were collected by the Carlsbad Golf Lodging Business Improvement District needed to be fully expended before golf-related promotion services could be shifted to the new district. On May 6, 2024, the Carlsbad Golf Lodging Business Improvement District’s Advisory Board approved the final reimbursements to properties for golf-related expenses, exhausting the old district’s funds. With those funds exhausted, the Advisory Board approved a recommendation to the City Council to disestablish the district. Fiscal Analysis Since the Carlsbad Golf Lodging Business Improvement District 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 Should the City Council adopt the resolution, staff will schedule a public hearing for July 23, 2024, and provide the appropriate notice to the public and interested parties. After the public hearing, the City Council may adopt the first reading of an ordinance repealing Carlsbad Municipal Code Chapter 3.38 contemporaneously with disestablishing the Carlsbad Golf Lodging Business Improvement District. June 25, 2024 Item #3 Page 2 of 5 Environmental Evaluation This action does not require environmental review because it 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 physical change or a reasonably foreseeable indirect physical change in the environment. Exhibits 1.City Council resolution June 25, 2024 Item #3 Page 3 of 5 RESOLUTION NO. 2024-157 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DECLARING ITS INTENTION TO REPEAL CARLSBAD MUNICIPAL CODE CHAPTER 3.38 AND DISESTABLISH THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT ESTABLISHED IN 2012 AND FIXING THE TIME AND PLACE OF A PUBLIC HEARING WHEREAS, on Nov. 27, 2012, the City Council of the City of Carlsbad approved Ordinance No. CS-194 enacting Chapter 3.38 of the Carlsbad Municipal Code establishing the Carlsbad Golf Lodging Business Improvement District (CGLBID) under the Parking and Busine·ss Improvement Area Law of 1989 (California Streets and Highways Code Section 36500 et seq.); 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.) as effectuated in City Council Resolution No. 2023-118; and WHEREAS, the New CTBID will continue providing golf-related programs and activities 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 Carlsbad Golf Lodging Business Improvement District has wound down operations and exhausted its remaining funds as of May 6, 2024;and WHEREAS, as a result of disestablishing the Carlsbad Golf Lodging Business Improvement District, Chapter 3.38 of the Carlsbad Municipal Code will become obsolete; and WHEREAS, the City Council has the authority to disestablish the Carlsbad Golf Lodging Business Improvement District under California Streets and Highways Code Section 36550. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the City Council declares its intention to repeal Carlsbad Municipal Code Chapter 3.38 contemporaneously with the disestablishment of the Carlsbad Golf Lodging Business Improvement District. June 25, 2024 Item #3 Page 4 of 5 Exhibit 1 3.That there are no remaining assets to dispose of acquired with the revenues of the assessments levied and collected for the Carlsbad Golf Lodging Business Improvement District's projects, programs, activities, and administration. 4.That the time and place for the public hearing to hear testimony on disestablishing the Carlsbad Golf Lodging Business Improvement District is set for July 23, 2024 at 5 p.m. at Carlsbad City Hall, 1200 Carlsbad Village Drive, Carlsbad, CA 92008. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 25th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. KEITH BLACKBURN, Mayor �SHERRY FREISINGER, City Clerk U-(SEAL) June 25, 2024 Item #3 Page 5 of 5