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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 15, 2020 <br />CLERK OF COUNCIL USE ONLY: <br />TITLE: <br />APPROVED <br />❑ As Recommended <br />ADOPT A RESOLUTION OF INTENTION TO <br />❑ Amended <br />❑ OOrrdinance on 1 Reading <br />ESTABLISH THE SANTA ANA TOURISM <br />❑ Ordinance on 2nd Reading <br />MARKETING DISTRICT <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />/s/ Kristine Ridge FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />1. Adopt a Resolution of Intention to establish the Santa Ana Tourism Marketing District <br />(SATMD) and the levy of assessments on lodging businesses. <br />2. Establish a time and place for a public meeting to be held by the City Council on October 6, <br />2020 to hear and consider all public testimonies. <br />3. Establish a time and place for a public hearing to be held by the City Council on November <br />17, 2020 regarding the proposed formation of the Santa Ana Tourism Marketing District. <br />DISCUSSION <br />Since 2019, representatives from the Santa Ana Chamber of Commerce, Main Place Mall, City <br />staff, and members of the local hotel industry, have explored the merits of implementing a Tourism <br />Marketing District in Santa Ana. As City funding for promotion and marketing of the City has been <br />limited over the years, this proposed district will augment and enhance the City's current marketing <br />and promotional efforts by providing much needed revenue to develop the City as a tourism <br />destination. These efforts are anticipated to lead to an increase in overnight lodging stays and <br />more visitors to the City of Santa Ana. The City has received signed petitions from a majority of <br />hotels that pay 50 percent or more of the assessment indicating that they wish to initiate <br />proceedings to form the Tourism Marketing District (Exhibit 3). <br />Similar to the City's current Downtown Business Improvement District, the Santa Ana Tourism <br />Marketing District (SATMD) is a benefit assessment district proposed to create a revenue source <br />to help fund marketing and sales promotion efforts for Santa Ana lodging businesses. This <br />approach has been used successfully in other destination areas throughout the state to improve <br />tourism and drive additional room nights to assessed lodging businesses. The established SATMD <br />includes all lodging businesses with 70 rooms or more located within the boundaries of the City of <br />Santa Ana. There are a total of 18 such lodging businesses. <br />12A-1 <br />