HomeMy WebLinkAbout2022-06-07; City Council; Resolution 2022-123RESOLUTION NO. 2022-123
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE CARLSBAD GOLF LODGING BUSINESS
IMPROVEMENT DISTRICT ANNUAL REPORT, DECLARING AN INTENTION TO
LEVY AND COLLECT AN ANNUAL ASSESSMENT AND SETTING A PUBLIC
HEARING FOR 5 P.M. ON JUNE 21, 2022
EXHIBIT 1
WHEREAS, the Carlsbad L�dging Business Improvement District (CGLBID) was formed in
accordance with the Parking and Business Improvement Area Law of 1989 (Cal. Streets and Highways
Code, § 36500 et seq.); and
WHEREAS, the CGLBID boundaries are the boundaries of the City of Carlsbad; and
WHEREAS, the CGLBID Advisory Board must present an annual report to the City Council for
approval for each fiscal year for which assessments are to be levied and collected to pay the cost for
the improvements and activities described in the report; and
WHEREAS, the CGLBID Advisory Board submitted an annual report (Attachment A) to the City
Council for fiscal year 2022-23; and
WHEREAS, after the City Council approves the annual report, the City Council must adopt a
resolution declaring its intention to levy and collect assessments for fiscal year 2022-23; and
WHEREAS, the assessments will generally be spent to promote golf-related tourism within the
CTLBID boundaries, for marketing related capital improvements, such as golf-related signage and
equipment, and to pay related administrative costs; and
WHEREAS, the amount of the proposed assessments and a full and detailed description of the
activities to be conducted and funded in fiscal year 2022-23 are included in Attachment A.
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 annual report (Attachment A) is approved as submitted by the CGLBID Advisory
Board.
3.That for fiscal year 2022-23, the City Council intends to levy and collect from
participating businesses in the CGLBID an assessment of $2 per occupied room per night
for all transient occupancies.
June 7, 2022 Item #2 Page 3 of 8
4.Notice is hereby given that a public hearing is scheduled for 5 p.m. at the City Council
Chambers located at 1200 Carlsbad Village Drive in Carlsbad, California on the following
date:
Tuesday, June 21, 2022
5.That at the public hearing, the City Council will consider any oral or written protests to
the levying of the assessments. Written protests must be submitted to the City Clerk's
Office at or before the time set for the public hearing. Written protests must contain
sufficient information to identify the affected business and to show the person
submitting the protest is the business owner or is speaking on behalf of the business
owner. Following the public hearing, if there are written protests from affected business
owners that will pay SO percent or more of the proposed assessments, the City Council
will not take any further action to levy the proposed assessment for one year.
6.That the City Clerk's Office is directed to give notice of the public hearing by causing this
resolution of intention to be published once in a newspaper of general circulation in the
city not less than seven days before the public hearing.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 7th day of June, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
� FAVIOLA MEDINA, City Clerk Services �er
(SEAL)
June 7, 2022 Item #2 Page 4 of 8
ATTACHMENT A
Carlsbad Golf Lodging Business Improvement District (CGLBID)
2022-2023 Annual Report
Method of Assessment: The CGLBID includes all hotel businesses in the City of Carlsbad
that have elected to participate in the district. The assessment shall be levied on all
hotel businesses that have elected to participate in the district within the City of
Carlsbad based upon a flat fee of $2.00 per occupied room per night for all transient
occupancies as defined in Section 3.12.020(7) of the Carlsbad Municipal Code. The
amount of assessment shall be separately stated from the amount of the rent and other
taxes charged, and each transient shall receive a receipt for payment from the operator.
The assessment will be remitted monthly based on $2.00 per occupied room per night in
revenues for the previous month.
Assessment Funding Purpose: The proceeds of the CGLBID assessment shall be spent to
promote golf-related tourism within the boundaries of the CGLBID, as well as marketing-
related capital improvements such as golf-related signage, golf-related equipment and
to pay for related administrative costs.
2022-23 Work Plan: The CGLBID was established in January 1, 2013. For the initial
period the district, fiscal year 2012-2013 (1/1/13-6/30/13) and the next fiscal year 2013-
14, three hotels – Sheraton Carlsbad, Park Hyatt Aviara and Grand Pacific Palisades
Hotel – opted into the district. In fiscal year 2014-15 Carlsbad by the Sea Resort opted
into the district, in fiscal year 2017-18 Omni La Costa Resort opted into the district, in
2018-19 Westin Carlsbad Resort opted into the district, and in 2020-21 Cape Rey Beach
Hilton Resort and the Hilton Garden Inn opted into the district. These eight hotels are
expected to collect a total of $764,000 in CGLBID assessments in fiscal year 2021-22.
Expenditures for fiscal year 2021-22 are estimated to be $450,000.
Each assessed business determines how to spend the funds collected by their respective
property provided the expenditures are for an approved golf-related expense.
Reimbursement of these expenses are made quarterly upon approval from the advisory
board up to the amount collected per property minus administrative fees. The
administrative fees pay for the collection of assessments and administration of the
district. Monies not spent by the end of the fiscal year will carry forward to the next
fiscal year.
For fiscal year 2022-23, it is estimated that these eight hotels will collect a total of
$770,000 in CGLBID assessments. Based on this revenue estimate and the carryforward
amounts from the previous fiscal year, the budgeted amount for reimbursement to the
hotels is $800,000. This amount will be available to the assessed hotels for
reimbursement. Administrative fees and staff support for fiscal year 2022-23 are
budgeted at $30,800, which is 4% of the revenues.
Detail of the 2022-23 budget is shown on the following page.
June 7, 2022 Item #2 Page 5 of 8
2022-23 CGLBID Budget
2019-20 2020-21 2021-22 Actuals as of Projected Recommended Program Areas Description Actual Actual Budget 4/30/2022 2021-22 2022-23 Budget
Carryover Fund Balance $291,861 $172,432 $307,491 307,491 307,491 597,411
Revenues:
CGLBID Assessment *$2 per room night 534,264 335,402 650,000 617,500 764,000 770,000
Interest Earnings 6,154 1,544 1,088 1,200 0
Total Estimated Revenues 540,418 336,946 650,000 618,588 765,200 770,000
Expenditures:
2% Admin. Fee - City For collection of CGLBID assessment and accounting
for CGLBID - 2% of CGLBID assessment revenue 10,685 7,108 13,000 12,350 15,280 15,400
Reimbursements Reimbursement to member hotels for golf related expenditures 641,382 189,660 800,000 294,900 450,000 800,000
Staff support Staff support to the CGLBID - 2% of CGLBID assessment revenue 7,780 5,119 13,000 5,661 10,000 15,400
Total Expenses 659,847 201,887 826,000 312,911 475,280 830,800
Ending Fund Balance Contingency for Revenue shortfall $172,432 $307,491 $131,491 $613,168 597,411 536,611
Member Hotels opting into the District:
* FY2014-15 - Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, and Carlsbad by the Sea Resort.
* FY2017-18 - Omni La Costa Resort.
* FY2018-19 - Westin Carlsbad Resort.
* FY2020-21 - Hilton Garden Inn, and Cape Rey Beach Hilton Resort.June 7, 2022Item #2 Page 6 of 8
12/13 13/14 14/15 15/16 16/17 17/18
Sheraton 59,404 147,486 147,814 147,110 147,110 136,592
GPP 21,234 52,718 52,918 51,714 51,294 53,722
Park Hyatt 54,518 154,320 170,508 152,404 159,530 167,087
Carlsbad By the Sea n/a n/a 68,998 77,150 71,014 61,078
Omni La Costa n/a n/a n/a n/a n/a 263,210
Westin n/a n/a n/a n/a n/a
Cape Rey
Hilton Garden Inn 135,156 354,524 440,238 428,378 428,948 681,689
June 7, 2022 Item #2 Page 7 of 8
18/19 19/20 2020-21 pro 2021-22 pro
111,046 167,882 45,000 77,732
46,414 28,492 30,000 32,490
163,152 108,078 30,000 114,206
60,170 42,906 35,000 42,119
262,262 188752 55000 183,583
76,690 53,683
65000 76,223
65000 76,223 719,734 536,110 325,000 656,260
June 7, 2022 Item #2 Page 8 of 8