2020-076 - Declaring its Intention to Establish the Santa Ana Tourism Marketing District

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Section 4. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code §36622. Section 5. The City Council declares its intention to establish the SATMD and to levy and collect assessments on lodging businesses with seventy (70) rooms or more within the SATMD boundaries pursuant to the Property and Business Improvement District Law of 1994. Section 6. The SATMD shall include all lodging businesses with seventy (70) rooms or more, existing and in the future, located within the boundaries of City of Santa Ana, as shown in the District Boundaries map attached hereto as Exhibit A and incorporated herein by reference. Section 7. The name of the district shall be the Santa Ana Tourism Marketing District ("SATMD"). Section 8. The annual assessment rate is two percent (2%) of gross short-term room rental revenue, which is estimated to be approximately $2,400,000 annually. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; stays pursuant to contracts executed prior to January 1, 2021; and stays by any federal or state officer or employee while on official business only and when payment for such occupancy is made directly to the operator by duly authorized voucher payment from a governmental accounting office. This exemption does not exempt a transient who is employed by the United States government or the state or their respective instrumentalities from payment of the assessment when the payment is later to be reimbursed by the United States government or the state or their respective instrumentalities. Section 9. The assessments levied for the SATMD shall be applied toward marketing and sales programs to market assessed lodging businesses in Santa Ana as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which SATMD assessments are levied as long as they are used consistent with the requirements of this resolution and the Plan. Section 10. The established SATMD will have a five (5) year term, beginning January 1, 2021, through December 31, 2025, unless renewed pursuant to Streets and Highways Code §36660, or disestablished per Streets and Highways Code §36670. Section 11. Bonds shall not be issued Resolution No. 2020-076 Page 2 of 5