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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />OCTOBER 6, 2020 <br />TITLE: <br />PUBLIC MEETING REGARDING THE <br />PROPOSED FORMATION OF THE SANTA <br />ANA TOURISM MARKETING DISTRICT <br />/s/ Kristine Ridge <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1"Reading <br />❑ Ordinance on 2od Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CK�7►11@1�1q�iC�. <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Conduct a public meeting regarding the proposed formation of the Santa Ana Tourism Marketing <br />District. <br />DISCUSSION <br />At the September 15, 2020 meeting, the City Council adopted a resolution declaring the City <br />Council's intention to form the Santa Ana Tourism Marketing District (SAMTD) and gave notice of <br />the time and place of a public meeting and public hearing on the establishment of the District and <br />the levy of assessments. The resolution set the public meeting for October 6, 2020 and set the <br />public hearing for November 17, 2020. <br />The Santa Ana Tourism Marketing District is a benefit assessment district proposed to create a <br />revenue source to fund marketing and sales promotion efforts for Santa Ana lodging businesses. <br />This approach has been used successfully in other destination areas throughout the State to <br />improve tourism and drive additional room nights to assessed lodging businesses. The established <br />SATMD includes all lodging businesses with seventy (70) rooms or more located within the <br />boundaries of the City of Santa Ana. There are 18 of those lodging businesses. As proposed, the <br />tourism marketing district would establish an annual assessment of two percent of gross short-term <br />room rental revenue, with restrictions, for lodging businesses within Santa Ana with 70 or more <br />rooms. <br />Lodging business owners decided to pursue establishment of the SATMD in order to create a <br />revenue source dedicated to marketing Santa Ana as a tourist, meeting, and event destination. If <br />established, the SATMD would generate approximately $2,400,000 (Pre-COVID estimate) on an <br />annual basis for promotion of travel and tourism specific to Santa Ana. These funds would be <br />solely controlled by the Travel Santa Ana Board of Directors, a non-profit organization that will be <br />established to administer this new marketing district. <br />The Property and Business Improvement District Law of 1994 (the 1994 Act) grants cities the <br />authority to establish these types of districts. The 1994 Act also requires that upon adoption of <br />65A-1 <br />