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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />NOVEMBER 3, 2015 <br />TITLE: <br />ADOPT A RESOLUTION TO <br />ESTABLISH A HOTEL DEVELOPMENT <br />INCENTIVE PROGRAM <br />{STRATEGIC PLAN NO. 3,3C) <br />1 1 E M <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />FTIT"00471irk <br />❑ As Recommended <br />171 As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt a resolution authorizing the establishment of a hotel development incentive program to <br />provide economic incentives for the development of four to five -stars or AAA -rated four Diamond <br />and above quality hotels in the City of Santa Ana. <br />DISCUSSION <br />According to the Anaheim /Orange County Visitors & Convention Bureau, 46.1 million people <br />visited Orange County in 2014. This increased by 3.9 percent from 2013 and is expected to <br />continue to increase even more in 2016. Tourism in Orange County is booming and the City of <br />Santa Ana has the opportunity to take advantage of its centralized location in the heart of this <br />booming industry. <br />Santa Ana's proximity to the Anaheim resort district, the John Wayne Airport, and local amenities <br />such as, the Discovery Science Cube and the Bowers Museum makes it a perfect location to <br />attract incoming tourists and visitors to Orange County. <br />To accommodate this growth, new hotel development will be essential to creating jobs and <br />adding amenities to the City. Currently, the City of Santa Ana does not have any four -star rated <br />or AAA four Diamond and above hotels. The City does have nine three -star rated hotels. All <br />other hotels and motels are rated from one to two -star. A uniform rating system for star quality <br />hotels in the United States does not exist. Several websites and travel guides use the star rating <br />when ranking hotels. AAA has an independent rating system that many hotels have been rated <br />by (Exhibit 1). The City desires to use both star and AAA diamond ratings for this incentive <br />program. <br />According to a study by PFK hospitality research consultant, the average occupancy rate for <br />Orange County hotels is 78.3 percent, indicating that there is room for the development of new <br />hotels in this area. <br />5513-1 <br />