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HomeMy WebLinkAbout2011-04-06; Carlsbad Tourism Business Improvement District; 04-11-64; Proposed Carlsbad Redemption Marketing DistrictCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL pTBID STAFF bENERAL boUNSEL AB# MTG. 04-11-64 4-6-11 DEPT. Manager Proposed Carlsbad Redemption Marketing District RECOMMENDED ACTION: Adopt Resolution No. 2011-2 directing staff to forward Exhibit 2, to the City Council with a recommendation to commence the legal proceedings for the fonnatipn of a second business improvement district in Carlsbad known as the Carlsbad Redemption Marketing District ("CRMD"). I ITEM EXPLANATION: At the CTBID's March 2nd 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 sufficient support to increase the assessment fee at this time. However, Board Chair Tim Stripe said that his group would be interested in looking at other revenue raising options. John Lambeth, Tim Stripe's attorney, has been working closely with City Attorney Ron Ball to develop the attached resolution which would commence the legal proceeding to forni a second business improvement district in Carisbad to be known as the Carisbad Redemption Mari<eting District (CRMD). This proposed CRMD would include all lodging businesses within the City of Carisbad that have a redemption stay program and have elected to participate in the CRMD program. The proposed assessment to be levied is $2.00 per occupied room night The CRMD advisory board members shall be the same as the CTBID Board excluding any CTBID Board member who represents a business not assessed by the proposed CRiyiD, but no less than three board members. Exhibit 2 is the proposed City Council resolution that would be presented to the City Council for the creation of the new CRMD. 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)). EXHIBITS: 1. Resolution No.: 2011-2 directing staff to fonward 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 Redemption Mariceting District. 2. Proposed Resolution of the Cartsbad City Council declaring intenfion to form the Cartsbad Redemption Marketing District. DEPARTMENT CONTACT: Cheryl Gertiardt, 760-277-5203, CQerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED • CONTINUED TO DATE SPECIRC DENIED CONTINUED TO DATE UNKNOWN • CONTINUED >C RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES ^IK. AMENDED • (p6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2011-1 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, DIRECTING STAFF TO FORWARD PROPOSED RESOLUTION TO CITY COUNCIL TO FO^tM A SECOND BUSINESS IMPROVEMENT DISTRICT be commenced by resolution of WHEREAS, the City Council ofthe City of Carlsbad a( [opted Ordinance No. NS-778 enacting Chapter 3.37 of the Carlsbad Municipal Code on November 15,2005 thereby creating the Carlsbad Tourism Business Improvement District (CTBID); WHEREAS, the primary purpose of the CTBID is to prpmote tourism and provide services to visitors to the City of Carlsbad; and WHEREAS, the CTBID Board has considered the formjation of a second district known as the Carisbad Redemption Marketing District (CRMD); and WHEREAS, the formation ofthe CRMD would need tc the Carisbad City Council; and WHEREAS, the CTBID Board has reviewed the propo^ resolution shown at Exhibit 2 which defines the CRMD district; and NOW, THEREFORE, BE IT RESOLVED by the Bo^ of Directors ofthe Carlsbad Tourism Business Improvement District, as follows: 1. That the above recitations are true and correct. 2. That the CTBID staff is directed to forward the proposed resolution to the City Council with a reconunendation to commence the Urgal proceedings to form a second business improvement district in Carlsbad kjiown as the Carlsbad Redemption Marketing District. 3. That the CTBID Chairperson is hereby authorized t|> approve the agreement between the CTBID and VisitCarlsbad in a form acceptable for the procurement of the described services. EXHIBIT I o the CTBID General Counsel PASSED, APPROVED, AND ADOPTED at a regular meeting ofthe Board of Directors ofthe Carlsbad Tourism Business Improvement District on the ^day of ^ 2011, by the foUovwng vote to wit: AYES: NOES: ABSENT: TIM STRIPE Chairperson ATTEST: LORRAINE WOOD Pro Tem Clerk ofthe Carlsbad Tourism Business Improvement District -2- EXHIBIT 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARlJSBAD DECLARING ITS INTENTION TO FORM THE CARLSBAD REDEMPTION MARKET [NG DISTRICT, FIXING THE TIME AND PLACE OF A PUBUC MEETING AND PUBLIC HE|ARING THEREON, AND GIVING NOTICE THEREOF WHEREAS, the City of Carlsbad (**City^) desires to establish a C'BID**) which shall be called the Carlsbad Redemption Marketing District assessment on kxlging businesses within the CRMD boundaries; and BuMness Improvement District ("CRMD") and levying an WHEREAS, the Parking and Business Improvement Area Law of Code §36500 et seq., authorizes cities and counties to establish paikhig and for the purpose of tourism promotion; and 989, Streets and Highways >usiness improvement areas WHEREAS, lodging business owners within the proposed CRMD ^ave requested the Carlsbad City Council establish such an improvement area; and WHEREAS, kxlging businesses have facilitated the request to Council desires to establish an advisory board to make reports and activities provided by the proposed CRMD. NOW, THEREFORE, BE IT REiSOLVED by the City Council follows: 1. The recitals set forth herein arc true and correiDt. forn the CRMD and the City recommendations to it regarding the of the City of Carlsbad as 2. The City Ck>uncil deciiues its inteiitiqn to form the CRMC) assessments within the C¥IMD boundaries pursuant to the Parkinj; Aiea Law of 1989^ Streets; fiiid^^^ Code §36500 et seq. The : sii^ City of Carlsbad^ 3; ' The name of the wea shall blithe Carisbad Redemption Marketing District. 4. The City Council intends to fomi the CRMD to administer prombteiVthe City of idarlsbad as a visitor destination for national branding initiiBttyes for redemption programs whk:h i other branding iniMai^y^^ and to fund programs and activities within the boundaries of the district. markdting and visitor programs to recemption stays, to promote include assessed hotels, to fund that benefit lodging businesses 5. The proposed CRMD will include all lodging businesses withi i have a redempton stay program and have elected to receive the The assessment is proposed to be levied on all partkipattng lodgfi in the future, widiin the CRMD based upon $2.00 per occupied where funds are otherwise available, an assessment will be levjied programs and activities within the district. New k)dging businesses boundaries will not be exempt from the levy of assessment ail and to levy and collect and Business Improvement boundaries of the CRMD the City of Carlsbad that redemption stay program, ing businesses, existing and ijaid room per night. Except annually to pay for the widiin die CRMD authorized by Streets and (^2 EXHIBIT 2 Highways Code §36531. The CRMD shall not include stays over thirty days, or stays by any federal or state employee when on govemment business. 6. The total CRMD assessment collected in year one is estimated to be $385,000. The funds raised shall be spent to promote redemption stay tourism within the boundaries ofthe CRMD and pay for related administrative costs. 7. Funds remaining at the end of any CRMD term may be used in subsequent years in which CRMD assessments are levied as long as they are used consistent with the requirements of this Resolution. Upon withdrawal of any business ^ni the CRMD, any remaining funds collected from that business will be spent consistent wiUi the provisions of the Carlsbad Tourism Business Improvement District. Upon termination of the CRMD, any remaining funds will be spent consistent with the provisions of the Carlsbad Tourism Business Improvement District. 8. The City of Carisbad will collect the assessment on a monthly >asis from die lodging businesses wiUiin the CRMD. The City of Carisbad will retain two percent (2%) of the amount collected to cover costs of collection. 9. Each lodging business assessed by the CRMD shall submit a quarterly accounting of expenses for CRMD activities to the adViSoty board, the advisory board shall review the quarteriy accounting for compliance: whh CRMD lejBulatio report the amount expended on allowed CRMD activities to the City. The dity s;!^ each business for CRMD- activity-related expenses in an amount not to exceed thib amount of assessment collected from that business minus two percent. 10. The City council shall make all apppintments to the CRMD advisory board. There shall be at least three, and no more than seven^ iineihbers appointed to the advisory board. All board members shall be representatives of assessed lodging businesses. The CRMD advisory board members shall be d^ same members as those appointed to the Carlsbad Tourism Business Imprbyement District advisory board, excluding any member of that advisory board who represents a business not assessed by the proposed CRMD. 11. The CRMD aidvisoiy board shall submit an annual report, which shall include a budget for operations and an identification of the marketing efforts to be undertaken by the CRMD for the ensuing calendar year, to the Carisbad 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 CRMD for the following year and a signed afHrmation of intent to be included in the CRMD for the following year from each business. 12. The time and place for a public meeting for comments on the proposed CRMD and the levy of assessmenta are set for in the City Council chambers located at 1200 Carlsbad Village Drive, Carlsbad, CA 92008. 2 13. The time and place for the public hearing to form the CRMD and in the City Council chambers kx»ted at Carlsbad, CA 92008. EXHIBIT 2 levy assessments are set for Carlsbad Village Drive, 14. At the public meeting and public hearing the testimony of all interested persons for or against forming the CRMD, the extent of the CRMD, or the fiimis liing of specified types of improvements or activities will be heard. t tgh' time 15. A protest against forming the CRMD, the extent pf! the CRNfD specified type of program or activity, as provkled iii;$treets and be made in writing. To count in a protest agiUi^ die C writing. A written protest may be withdrawn, in iwiting. a* any the public hearing. Each written protest shall contain a descriptjoi the person signing the protest is interesUfd; sufficient to identify If the person signing the protest is not shown on the official recoriis the owner of the business, then the prb&k: shall ..coi^^^ or evidence that the person u^jithe owner of ti^ ||us^^ If the corporation, LLC, partnersii|p^;:Oth^ legal eiiiii||, the authorized entity shall be authorized to si^ di^ j^t^. Any pTOi^st as to the proceedings shall be in writing atidf dearly stati^^ithe. irre; objectKMi is matte;;:: protais^ must bbiil<||e^ by the C before the ck^ df the heariiigs^hedid^ ti^ may City Clerit at 1200 Carlsbad Village EHM <^Isba4 C>( 92008. or the furnishing of a ways Code §36524, may a protest must be made in before the conclusion of n of the business in which he business and its address, ofthe City of Carlsbad as accompanied by written owner of: the business is a representatives for the regularity or evklence of ^larity or defect to which erk of the City of Carlsbad }e delivered or mailed to the >e Ihe shall 16. If,: at the conclusijra. of: 1^^^ are of record written c^buiEiiii^^ coflectively pay fifty CRMD assessn^ut, no iiiirtt^ proceedlnjj|5.to form the CRMD year from the date of the iAnding of a majority protest. If the diily as to a proposed improvetiiinit or activity, then that type of v not tiiB: included in the CRMD. 17. Further information reining the proposed CRMD may be obtained from die City Clerk, at 1200 Carisfa^ yiUagb: I^^ Carisbad, CA 92008. 18. The City Clerk is instructed to provkle notke of die public mcjeting and public hearing as follows: 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 owner proposed to l>e assessed in the CRMD within seven this Resolution. protests by the owners >ercent or more of the total occur for a period of one njiajorlty of written protest is il nprovement or activity shall to each and every business days of the adoption of ^0 EXHIBIT 2 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 following vote: AYES: NAYES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk CITY OF ^"CARLSBAD February 11,2011 To: aBID ADVISORY BOARD From: CITY ATTORNEY Re: INCREASING THE CTBID ASSESSMENT At your next meeting I understand you will be discussing the procedure for Increasing the assessment for the CTBID. The basis and method for levying the CTBID assessment may be altered in conjunction with the procedures for presenting the annual report to the City Council or by ordinance of the City Council at any other time. For either method, the City Council would first need to adopt a resolution of Intention stating the proposed modifications and setting a public meeting and a public hearing. Notice of the public meeting and public hearing would need to be published in the newspaper and mailed to the affected business owners. At the public hearing, the City Council would hear all oral and written protests. If written protests are filed by the owners of businesses which will pay 50% or more ofthe proposed assessments, no further action to levy the proposed assessment may be taken to for a period of one year from the date of the finding of a majority protest by City Council. In conjunction with the procedures mentioned above, the Carlsbad Municipal Code would also need to be changed. CMC §3.37.050 states that the CTBID assessment Is "based upon a flat fee of one dollar per occupied room per night for all transient occupancies." CMC §3.37.050 would need to be^mended to reflect the new rate If the City Council approves the change. RONALD R. BALL City Attorney cc: Deputy City Manager Cheryl Gerhardt city Attorney 1200 Carisbad Village Drive I Carisbad, CA 92008 | 760-434-28911 760-434-8367 fax I www.carlsbadca.gov SUMMARY OF CODE SECTIONS REGARDING INCREASING CTBID ASSESSMENT §36523 Notice of a public hearing held pursuant to §§ 36524,36541,36541 or 36550 must be made by: • Resolution of Intention must be published in a newspaper once for at least 7 days before the public hearing (accomplished by Govt Code §54954.6) • Resolution of Intention must be mailed to each business owner In the area within 7 days of city Council's adoption of resolution • Resolution of Intention must be mailed to each business owner In the area which will be subject to assessment within 7 days of adoption ofthe resolution. §36523.5 Prior to adopting a new or Increased assessment, notice must be given pursuant to Govt Code §54954.6 in lieu of publishing notice pursuant to §36523(a). GC §54954.6 City Council must hold one public meeting in addition lo tiie public hearing at which the increased assessment is proposed to be enacted. • The public meeting shall take place no earlier than 10 days after publication of the notice • The public hearing shall take place no eariier than seven days after the public meeting. • The public hearing shall take place no eariier than 45 days after the first publication of the notice. §36524 At the hearing die City Council hears protests - oral and written. Written protest must contain or be accompanied by written evidence diat tiie autiior Is die owner of die business or It shall not be counted towards a majority protest §36525 If written protests are filed by the owners of businesses which will pay 50% or more of tiie proposed assessments, no fiirtiier action to levy Uie proposed assessment may be taken to for a period of one year from the date of the finding of a majority protest by City Council. §36533 CTBID Advisory Board must issue an annual report to the City Council for each fiscal year for which assessments are to be levied. The report must include tiie metiiod and basis for levying tire assessment §36534 After filing of annual report, City Council Issues a resolution of Intention to levy assessment for tiiat fiscal year and sets a public hearing at least 10 days later. §36541 City Council may modify tiie basis and method of levying the assessment by adopting an ordinance after a public hearing • Council must first adopt a resolution of Intention which states the proposed modification and sets a public hearing to be held not less than 20 or more than 30 days later. • Notice of the public hearing shall be published and mailed to business owners as provided by §36523. « Hearing to be conducted as provided in §36524 & 36525. <C ^rR> Cl T Y O F fr ^ V^CARLSBAD ^..^^ March 3, 2011 To: CTBID BOARD OF DIRECTORS From: GENERAL COUNSEL Re: WEIGHT OF WRITTEN PROTESTS FILED BY OWNERS OF BUSINESSES TO BE ASSESSED At your meeting of Wednesday, March 2, 2011, a question arose as to how written protests would be counted if and when the matter came before the City Council following a recommendation by this board to increase assessments. Streets and Highways Code section 36525 defines a majority protest for purposes of assessments under the 1989 Parking and Business Improvement Law. Those protests must be in writing and they are weighted according to the pro-rata assessment from that business compared to total assessments to be paid by ali businesses in the district. That is to say, it is not one vote per hotel but a weighted vote according to the assessments to be paid. Therefore, if written protests which will pay more than 50% of the proposed assessments protests, then the proceedings are halted and no activity shall be taken on the proposal for at least one year. Please see Streets and Highways Code section 36525 (attached). Should you have any questions regarding the above, pleas.e do not hesitate to contact me. RONALD R. BALL General Counsel /rn c: City Clerk Deputy City Manager Cheryl Gerhardt, Consultant City Attorney 1200 Carlsbad Village Drive I Carisbad, CA 92008 I 760-434-2891 I 760-434-8367 fax I www.carlsbadca.gov 36 525. (a) If written protests are received from the owners of businesses in the proposed area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to create the specified parking anci business improvement area or to levy the proposed assessment, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (b) If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area,those types of improvements or activities shall be eliminated.