2025-011 Renew the Santa Ana Tourism Marketing District (“SATMD”) and Fixing the Time and Place of a Public Meeting and a Public Hearing Thereon and Giving Notice Therof

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Section 4. The City Council declares its intention to renew the SATMD and to levy and collect assessments on lodging businesses within the SATMD boundaries pursuant to the Property and Business Improvement District Law of 1994. Section 5. The SATMD shall include all lodging businesses with seventy (70) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City, as shown in the map attached hereto as Exhibit A and incorporated herein by reference. Section 6. The name of the district shall continue to be the Santa Ana Tourism Marketing District("SATMD"). Section 7. The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. Every two (2)years during the operation of the SATMD, the assessment rate may be increased by the TSA Board to a maximum rate of four percent (4%) of gross short-term sleeping room rental revenue. If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any two-year period shall be one-half of one percent (0.5%). Based on the benefit received, assessments will not be collected on: stays of more than thirty(30) consecutive days; stays by any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the assessment herein provided; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; 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 8. The assessments levied for the SATMD shall be applied toward Sales and Marketing promotions programs to market assessed lodging businesses in Santa Ana as tourist, meeting, and event destinations, as described in the Plan. The assessments levied for the SATMD shall also be applied to Administration, Contingency/Reserve, City administration services, as these are necessary to provide the Sales and Marketing Programs. 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 9. The renewed SATMD will have a ten (10) year term, beginning January 1, 2026 or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code §36660. Resolution No.2025-011 Page 2 of 5