75B - PH FOR TOURISM MARKETING DISTRICT

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Public Hearing SATMD November 17, 2020 Page 2 The Property and Business Improvement District Law of 1994 (the 1994 Act) grants cities the authority to establish these types of districts. The 1994 Act also requires that upon adoption of the Resolution declaring the City's intent, the City must mail written notice to all businesses within the SATMD, 45 days before the November 17, 2020 Public Hearing. The notice was mailed on September 16, 2020 and began the mandatory period in which owners may protest SATMD formation. At this public hearing, if written protests are received from the owners of lodging businesses which pay more than fifty percent (50%) of the assessments proposed to be levied, no further proceedings to levy the proposed assessment against the lodging businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the City Council. To date, the City has received seven petitions from hotels in support of the District. These seven pay 58% of the assessments proposed to be levied. Therefore, unless one of the hotels in support changed their position, the remaining hotels would not make up more than 50% of the proposed assessment to protest the establishment of the District. At the conclusion of the public hearing to establish the SATMD, the City Council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. If the City Council, following the public hearing, decides to establish the SATMD, the City Council shall adopt a resolution of formation. FISCAL IMPACT The City's Finance and Management Services Agency will levy the assessments and deposit the receipts into the Santa Ana Tourism Marketing District, Trust & Agency account (No. 09601001- 24054). The City will retain a fee of two percent (2%) of the amount collected to cover its costs of administration and these amounts will be deposited into the Finance and Management Services Expense Reimbursement account (No. 01110002-57000). The remainder of the funds will be disbursed to the Travel Santa Ana organization from the Trust & Agency account. As the SATMD programs are intended to increase visitation to the City, there may be an increase in transient occupancy tax and sales tax collections. Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director— Finance and Management Services Agency Submitted By: Steven A. Mendoza, Executive Director — Community Development Agency Kathryn Downs, CPA, Executive Director— Finance and Management Services Agency Exhibit: 1. Resolution of Intention to Establish SATMD 75B-2