HomeMy WebLinkAboutItem 23 - Resolution of Intention to Renew the Santa Ana Tourism Marketing District Community Development Agency
www.santa-ana.org/community-development
Item # 23
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 15, 2025
TOPIC: Resolution of Intention to Renew the Santa Ana Tourism Marketing District
AGENDA TITLE
Resolution of Intention to Renew the Santa Ana Tourism Marketing District
RECOMMENDED ACTION
1. Adopt a Resolution of Intention to renew the Santa Ana Tourism Marketing District
(SATMD) and the levy of assessments on lodging businesses.
RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO 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 THEREOF
2. Establish a time and place for a public meeting to be held by the City Council on
June 3, 2025 to hear and consider all protests.
3. Establish a time and place for a Public Hearing to be held by the City Council on July
1, 2025 regarding the proposed renewal of the Santa Ana Tourism Marketing
District.
4. Receive and File 2024 Travel Santa Ana Annual Report.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
On November 17, 2020, the City Council adopted a resolution to establish the Santa
Ana Tourism Marketing District (SATMD) for a five (5) year term. Travel Santa Ana
(TSA) and Santa Ana lodging businesses now wish to renew the SATMD for an
additional ten (10) year term.
The Santa Ana Tourism Marketing District (SATMD) is a participant-driven benefit
assessment district proposed to create a revenue source to help fund marketing and
sales promotion efforts for Santa Ana lodging businesses. The City’s role in the Santa
Ana Tourism Marketing District is limited to acting as a fiscal agent. It facilitates the
collection and distribution of funds but does not influence how those funds are used. All
Resolution of Intention to Re-establish SATMD
April 15, 2025
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decisions regarding spending priorities and marketing activities are made by the Travel
Santa Ana Board of Directors. Additionally, the City does not contribute or allocate any
public funding to support the district, which is entirely self-imposed and funded by the
participating hotels themselves. This approach has been used successfully in other
destination areas throughout the state to improve tourism and drive additional room
nights to assessed lodging businesses. The established SATMD includes all lodging
businesses with seventy (70) rooms or more located within the boundaries of the City of
Santa Ana. There are 17 of those lodging businesses in the SATMD.
The City has received signed petitions from 12 of the 17 lodging businesses which
represent 74% of the total Hotel Visitor Tax assessment indicating that they wish to
initiate proceedings to renew the Santa Ana Tourism Marketing District for an additional
10-year term (Exhibit 3). The Property and Business Improvement District Law of 1994
requires more than 50% of assessed hotels to sign a petition in support to renew the
Tourism Marketing District.
Lodging business owners decided to pursue renewal of the SATMD in order to continue
with a dedicated revenue source devoted to marketing Santa Ana as a tourist, meeting,
and event destination. These funds have been managed by the Travel Santa Ana (TSA)
Board of Directors, a non-profit tourism and marketing destination organization that was
created.
FIVE-YEAR TRAVEL SANTA ANA ACCOMPLISHMENTS
Established with the formation of the Santa Ana Tourism Marketing District in 2020,
Travel Santa Ana has positioned itself as the city's official destination marketing
organization, effectively shaping a distinct brand identity and enhancing Santa Ana’s
visibility as a dynamic visitor destination. Through strategic leadership, data-driven
decision-making, and targeted marketing initiatives, Travel Santa Ana has strengthened
tourism's economic impact while fostering robust community engagement.
Since its inception, the SATMD has collected more than $5.6 million in assessment
fees. Travel Santa Ana's initiatives have generated over 100 leads for hotel bookings,
projecting potential revenues exceeding $9.3 million in the last year. Further details and
achievements of Travel Santa Ana can be found in the 2024 Travel Santa Ana Annual
Report (Exhibit 4). To establish a cohesive and authentic brand identity, Travel Santa
Ana implemented an innovative branding strategy, replacing a traditional logo with
signature designs created in collaboration with five local artists. This community-driven
approach reflects Santa Ana’s cultural and artistic vibrancy. The organization also
developed two comprehensive three-year strategic plans, outlining a framework for
sustained destination marketing efforts. A critical component of this strategy was the
launch of www.travelsantaana.com, serving as the primary digital platform for
promoting Santa Ana’s attractions, businesses, and events.
Travel Santa Ana has also focused on enhancing visitor engagement through curated
content and outreach initiatives. The publication of an annual Visitors Guide and a
Resolution of Intention to Re-establish SATMD
April 15, 2025
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Public Art Guide, highlighting over 200 murals citywide, has provided valuable
resources for tourists and residents alike. The "Santa Ana Enthusiast" ambassador
program further strengthened community involvement by engaging local stakeholders in
promoting the city's unique experiences.
Strategic sales and marketing efforts have targeted key market segments, driving
tourism-related economic activity. A comprehensive digital marketing strategy,
incorporating official social media channels and a professionally produced destination
video, has amplified Santa Ana’s presence across multiple platforms. Notable
collaborations, such as partnerships with the Orange County Restaurant Association for
OC Restaurant Week and the "Proud Santanero" campaign series, have spotlighted
local businesses and cultural assets.
Recognizing the importance of data in decision-making, Travel Santa Ana
commissioned the city's first tourism economic impact study, providing critical insights
into visitor trends and spending patterns. International outreach has been a key priority,
with initiatives such as a culinary passport program showcasing Santa Ana’s diverse
dining scene and a pioneering cannabis tourism program designed to attract niche
travel markets. These efforts have positioned Santa Ana as a compelling destination for
both domestic and international visitors, particularly from Mexico and Canada.
Further expanding its global reach, Travel Santa Ana has developed an international
marketing plan and secured a partnership with acclaimed travel journalist Peter
Greenberg for a segment on Santa Ana’s “Hidden Gems,” set to air on PBS and Apple
TV. These initiatives collectively contribute to Santa Ana’s long-term tourism growth,
reinforcing the city's status as a premier destination within the region.
It was reported that in January 2025, the hotel occupancy for the SATMD was up 11.9%
from January 2024. In addition, the Average Daily Rate for hotels were up 1.6% which
resulted in a 13.7% increase in hotel revenue.
TOURISM MARKETING DISTRICT BACKGROUND
Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in
the market-based promotion of tourism. These special assessment districts allow
lodging business owners to organize their efforts to increase tourism. Lodging business
owners within the TMD fund the TMD and those funds are used to provide services that
are desired by and benefit the lodging businesses within the TMD. The City serves
solely as the fiscal agent, responsible for collecting and disbursing the assessment
funds to Travel Santa Ana. This program is entirely funded by participating hotels, with
no expenditure of public funds.
TMD benefits:
•Funds cannot be diverted for other City government programs
•They are customized to fit the needs of each destination
Resolution of Intention to Re-establish SATMD
April 15, 2025
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•They allow for a wide range of services, including: destination marketing, tourism
promotion, and sales lead generation
•They are designed, created, and governed by those who will pay the assessment
•They provide a stable funding source for tourism promotion
In California, TMDs are primarily formed pursuant to the Property and Business
Improvement District Law of 1994 (94 Law). This law allows for the creation of a special
benefit assessment districts to raise funds within a specific geographic area. The key
difference between TMDs and other special benefit assessment districts is that funds
raised are returned to the private non-profit corporation governing the TMD.
MANAGEMENT DISTRICT PLAN
The Management District Plan (Exhibit 2) includes the proposed boundary of the
SATMD, a service plan and budget, and a proposed means of governance. The SATMD
will include all lodging businesses with seventy (70) rooms or more, existing and in the
future, available for public occupancy within the boundaries of the City of Santa Ana.
The renewed SATMD will have a ten (10) year life, beginning January 1, 2026, or as
soon as possible thereafter, and ending ten (10) years from its start date. After ten (10)
years, the SATMD may be renewed pursuant to the Property and Business
Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
(94 Law) if assessed business owners support continuing the SATMD programs. 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%). Once per year
beginning on the anniversary of SATMD establishment, there is a thirty (30) day period
in which business owners paying fifty percent (50%) or more of the assessment may
protest and begin proceedings to terminate the SATMD.
The City of Santa Ana has been and will continue to be responsible for collecting the
assessment on a monthly basis (including any delinquencies, overdue charges, and
interest) from each assessed lodging business located in the boundaries of the SATMD.
The City then disburses the assessment amounts, minus the two percent (2%)
administrative fee to Travel Santa Ana. Since inception of the first SATMD, the City has
collected $114,114 in administration fees.
Each year, Travel Santa Ana presents an annual report to City Council identifying the
activities of the Tourism Marketing District. The 2024 Travel Santa Ana Annual Report
has been attached as a Receive and File.
Resolution of Intention to Re-establish SATMD
April 15, 2025
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SATMD RENEWAL SCHEDULE
April 15, 2025 RESOLUTION OF INTENTION HEARING
Upon the submission of a written petition, signed by the business
owners in the established district who will pay more than fifty
percent (50%) of the assessments proposed to be levied, the
City Council may initiate proceedings to establish a district by the
adoption of a resolution expressing its intention to establish a
district.
Petition Status: Petitions in favor of SATMD renewal were
submitted by 12 lodging businesses, which represent 74% of the
total SATMD assessment. This majority petition allows the
Council to initiate proceedings for SATMD renewal at the June 3,
2025 meeting.
April 18, 2025 NOTICE
The 94 Law requires the City to mail written notice to the owners
of all businesses proposed to be within the SATMD. Mailing the
notice begins a mandatory forty-five (45) day period in which
owners may protest SATMD renewal.
June 3, 2025 PUBLIC MEETING
Allow public testimony on the renewal of the SATMD and levy of
assessments. No Council action required.
July 1, 2025 FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in
the established SATMD which will pay fifty percent (50%) or
more of the assessments proposed to be levied and protests are
not withdrawn so as to reduce the protests to less than fifty
percent (50%), no further proceedings to levy the proposed
assessment against such businesses shall be taken for a period
of one (1) year from the date of the finding of a majority protest
by the Council.
At the conclusion of the public hearing to renew the SATMD, the
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 Council, following the public hearing, decides to renew the
SATMD, the Council shall adopt a resolution of formation.
Resolution of Intention to Re-establish SATMD
April 15, 2025
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FISCAL IMPACT
The City will receive a fee of two percent (2%) of the amount collected to cover its costs
of administration. Funds are received from Community Development Agency (CDA)
Trust & Agency – Travel Santa Ana account 09601001-24054 and deposited in Finance
Management Services Agency (FMSA) account 01110002-57000 Expense
Reimbursement.
EXHIBIT
1. Resolution of Intention to Renew the SATMD
2. Santa Ana Tourism Management District Plan
3. Signed Hotel Petitions
4. 2024 Travel Santa Ana Annual Report
Submitted By: Michael L. Garcia, Executive Director of Community Development
Agency
Approved By: Alvaro Nuñez, City Manager
Resolution No. 2020-XXX
Page 1 of 5
RESOLUTION NO. 2025- XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA DECLARING ITS INTENTION TO RENEW THE
SANTA ANA TOURSIM MARKETING DISTRICT (“SATMD”)
AND FIXING THE TIME AND PLACE OF A PUBLIC
MEETING AND A PUBLIC HEARING THEREON AND
GIVING NOTICE THEREOF
WHEREAS, the City of Santa Ana (City) created the Santa Ana Tourism Marketing
District (SATMD) on November 17, 2020 by Resolution No. 2020-191; and
WHEREAS, the SATMD was created for a five (5) year term which ends on
December 31, 2025; and
WHEREAS, the Property and Business Improvement Law of 1994, Streets and
Highways Code § 36600 et seq., authorizes the City to renew business improvement
districts for the purposes of promoting tourism; and
WHEREAS, Travel Santa Ana (TSA), lodging business owners, and
representatives from the City have met to consider the renewal of the SATMD; and
WHEREAS, TSA has drafted a Management District Plan (Plan) which sets forth
the proposed boundary of the SATMD, a service plan and budget, and a proposed means
of governance; and
WHEREAS, lodging businesses who will pay more than fifty percent (50%) of the
assessment under the SATMD have petitioned the City Council to renew the SATMD.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The recitals set forth herein are true and correct.
Section 2. The City Council finds that assessed businesses that will pay more than
fifty percent (50%) of the assessment proposed in the Plan have signed and submitted
petitions in support of the renewal of the SATMD. The City Council accepts the petitions
and adopts this Resolution of intention to renew the SATMD and to levy an assessment on
certain lodging businesses within the SATMD boundaries in accordance with the Property
and Business Improvement District Law of 1994.
Section 3. The City Council finds that the Plan satisfies all requirements of Streets
and Highways Code §36622.
Resolution No. 2025-XXX
Page 2 of 5
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.
Resolution No. 2020-XXX
Page 3 of 5
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.
Section 10. TSA shall not issue debt of any kind, including bonds; and shall only
fund expenses with recurring assessment revenue collected or the reserve balance.
Section 11. The time and place for the public meeting to hear testimony on
renewing the SATMD and levying assessments is set for June 3, 2025, at 5:00 PM, or as
soon thereafter as the matter may be heard, at the Council Chambers located at 22 Civic
Center Plaza, Santa Ana, CA 92701.
Section 12. The time and place for the public hearing to renew the SATMD and
the levy of assessments is set for July 1, 2025, at 5:00 PM, or as soon thereafter as the
matter may be heard, at the Council Chambers located at 22 Civic Center Plaza, Santa
Ana, CA 92701. The City Clerk is directed to provide written notice to the assessed
businesses subject to assessment of the date and time of the meeting and hearing, and to
provide that notice as required by Streets and Highways Code §36623, no later than May
16, 2025.
Section 13. At the public meeting and the public hearing, the testimony of all
interested persons for or against the renewal of the SATMD may be received. If at the
conclusion of the public hearing, there are of record written protests by the owners of the
assessed businesses within the renewed SATMD that will pay more than fifty percent
(50%) of the estimated total assessment of the entire SATMD, no further proceedings to
renew the SATMD shall occur for a period of one (1) year.
Section 14. The complete Plan is on file with the City Clerk and may be reviewed
upon request.
Section 15. This Resolution shall take effect immediately upon its adoption by the
City Council.
Resolution No. 2025-XXX
Page 4 of 5
ADOPTED this ______ day of ______________, 2025.
_______________________
Valerie Amezcua
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:________________________
Andrea Garcia-Miller
Assistant City Attorney
AYES: Councilmembers _______________________________________
NOES: Councilmembers _______________________________________
ABSTAIN: Councilmembers _______________________________________
NOT PRESENT: Councilmembers _______________________________________
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, JENNIFER HALL, City Clerk, do hereby attest to and certify the attached Resolution
No. 2025-XXX to be the original resolution adopted by the City Council of the City of
Santa Ana on _______________.
Date: ________________ ____________________________________
City Clerk
City of Santa Ana
Resolution No. 2020-XXX
Page 5 of 5
EXHIBIT A
SATMD BOUNDARIES
SATMD Management District Plan 1
February 27, 2025
2026-2035
SANTA ANA TOURISM MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of
1994, Streets and Highways Code section 36600 et seq. February 27, 2025
EXHIBIT 2
SATMD Management District Plan 2
February 27, 2025
CONTENTS
I. OVERVIEW ...................................................................................................................... 3
II. BACKGROUND ................................................................................................................ 5
III. ACCOMPLISHMENTS ................................................................................................ 6
IV. BOUNDARY ................................................................................................................. 7
V. ASSESSMENT BUDGET AND SERVICES ................................................................... 8
A. ANNUAL SERVICE PLAN ...................................................................................................................... 8
B. ANNUAL BUDGET ............................................................................................................................... 10
C. CALIFORNIA CONSTITUTIONAL COMPLIANCE ............................................................................... 10
D. ASSESSMENT ........................................................................................................................................ 12
E. INTEREST AND OVERDUE CHARGES ............................................................................................... 13
F. TIME AND MANNER FOR COLLECTING ASSESSMENTS ................................................................. 14
VI. GOVERNANCE .......................................................................................................... 15
A. OWNERS’ ASSOCIATION .................................................................................................................... 15
B. BROWN ACT AND CALIFORNIA PUBLIC RECORDS ACT COMPLIANCE ....................................... 15
C. ANNUAL REPORT................................................................................................................................ 15
APPENDIX 1 – LAW .............................................................................................................. 16
APPENDIX 2 – ASSESSED BUSINESSES ........................................................................... 28
Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
EXHIBIT 2
SATMD Management District Plan 3
February 27, 2025
I. OVERVIEW
Developed by Santa Ana lodging businesses and Travel Santa Ana (TSA), the Santa Ana Tourism
Marketing District (SATMD) is an assessment district proposed to continue to provide specific
benefits to payors by funding Sales and Marketing promotion efforts for assessed businesses. This
approach has been used successfully in other destination areas throughout the country to provide the
benefit of additional room night sales directly to payors. The SATMD was initially created in 2021 for
a five (5) year term. TSA and Santa Ana lodging businesses now wish to renew the SATMD for an
additional ten (10) year term.
Location: The renewed SATMD includes 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 of Santa Ana (City), as shown on the map in Section IV.
Services: The SATMD is designed to provide specific benefits directly to payors by increasing
awareness and demand for room night sales. Sales and Marketing promotions
programs will increase demand for overnight tourism and market payors as tourist,
meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total SATMD annual assessment budget for the initial year of its ten (10) year
operation is anticipated to be approximately $1,600,000. A similar assessment budget
is expected to apply to subsequent years, but this assessment budget is expected to
fluctuate as room sales do, as businesses open and close, and if the assessment rate is
increased or decreased pursuant to this Management District Plan (Plan).
Cost: 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.
Collection: The City will be responsible for collecting the assessment on a monthly basis (including
any delinquencies, interest, and overdue charges) from each assessed lodging business
EXHIBIT 2
SATMD Management District Plan 4
February 27, 2025
located in the boundaries of the SATMD. The City shall take all reasonable efforts to
collect the assessments from each assessed lodging business.
Duration: The renewed SATMD will have a ten (10) year life, beginning January 1, 2026, or as
soon as possible thereafter, and ending ten (10) years from its start date. After ten (10)
years, the SATMD may be renewed pursuant to the Property and Business
Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
(94 Law) if assessed business owners support continuing the SATMD programs.
Management: TSA shall continue to serve as the SATMD’s Owners’ Association. The Owners’
Association is charged with managing funds and implementing programs in
accordance with this Plan, and must provide annual reports to the City Council.
EXHIBIT 2
SATMD Management District Plan 5
February 27, 2025
II. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed
in West Hollywood, California in 1989. Since then, over 100 California destinations have followed
suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota,
Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have
adopted TMD laws. Several other states are in the process of adopting their own legislation. The
cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law
to form a TMD. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have
utilized their home rule powers to create TMDs without a state law.
California’s TMDs collectively
raise over $300 million annually for
local destination marketing. With
competitors raising their budgets,
and increasing rivalry for visitor
dollars, it is important that Santa
Ana lodging businesses continue
to invest in stable, commerce-
specific marketing programs.
TMDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TMDs allow
tourism business owners to
organize their efforts to increase
commerce. lodging business owners within the TMD pay an assessment and those funds are used to
provide services that increase commerce.
In California, most TMDs are formed pursuant to the Property and Business Improvement District
Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a
specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds
raised are returned to the private non-profit corporation governing the district.
There are many benefits to TMDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those
who pay;
• Funds cannot be diverted to general government programs;
• They are customized to fit the needs of payors in each destination;
• They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and
• They provide a stable, long-term funding source for tourism promotion.
0
20
40
60
80
100
120
Number of Districts Operating in
California
EXHIBIT 2
SATMD Management District Plan 6
February 27, 2025
III. ACCOMPLISHMENTS
During its initial five (5) year term, the SATMD has achieved remarkable success in visitor engagement
and economic impact through a comprehensive Sales and Marketing program. Accomplishments for
the initial SATMD term include:
• Staff of three including President & CEO, Director of Sales and Content & Community
Engagement Manager.
• Developed a brand for the destination, including mission and vision.
• Worked with five local artists to create Santa Ana signatures in replacement of a traditional
logo.
• Developed three-year strategic plans for 2022-2024 and 2025-2027 to market Santa Ana as a
visitor destination, increase visitor revenue and build community support and participation in
the SATMD.
• Launched official website, www.travelsantaana.com.
• Published the 2023, 2024, and 2025 Visitors Guides.
• Established a Marketing Advisory Group with the objective of creating synergy among Santa
Ana marketers.
• Curated a Public Art Guide featuring more than 200 murals throughout Santa Ana.
• Created the Santa Ana Enthusiast Ambassador Program.
• Developed strategic sales efforts identifying key domestic and international market segments.
• Developed a digital marketing strategy.
• Launched official social media channels.
• Produced a destination video.
• Partnered with Orange County Restaurant Association to leverage exposure for Santa Ana
restaurants during OC Restaurant Week.
• Highlighted local business owners and residents in the “Proud Santanero” campaign series.
• Conducted the first-ever tourism economic impact study.
• Promoted Santa Ana in print publications for leisure, and meeting trade.
• Hosted a dozen media and influencers.
• Developed a cannabis tourism program.
• Developed a Culinary Passport to highlight the destination’s diverse dining.
• Developed a Michelada Guide to showcase the popular Mexico beverage.
• Developed an international marketing plan to promote Santa Ana to attract visitors from
Mexico and Canada.
• Conducted the DNext and Futures Study, an important assessment of how Santa Ana scores
as a tourist destination.
• Worked with Peter Greenberg on a production of “Hidden Gems” featuring several locations
within Santa Ana to air on PBS and AppleTV.
• Initiated quarterly meetings between City Councilmembers, Santa Ana Police Department,
City Manager, economic development, and hoteliers to provide the opportunity for the
hoteliers to address issues, concerns and develop relationships with City officials.
EXHIBIT 2
SATMD Management District Plan 7
February 27, 2025
IV. BOUNDARY
The SATMD will continue to include all lodging businesses with seventy (70) rooms or more, existing
and in the future, available for public occupancy within the boundaries of the City of Santa Ana, as
shown in the map below.
Lodging business means: Any structure, or any portion of any structure, which is occupied or intended
or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any
hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house,
apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location,
or other similar structure or portion thereof.
A complete listing of assessed lodging businesses within the renewed SATMD can be found in
Appendix 2.
EXHIBIT 2
SATMD Management District Plan 8
February 27, 2025
V. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to
the payors that are not provided to those not charged, and which do not exceed the reasonable cost
to the City of conferring the benefits or granting the privileges. The privileges and services provided
with the SATMD funds are Sales and Marketing programs available only to assessed businesses.
A service plan assessment budget has been developed to deliver services that benefit the assessed
businesses. A detailed annual assessment budget will be developed and approved by the TSA Board.
The chart below illustrates the initial annual assessment budget allocations. These activities and
allocations will also apply in subsequent years. The total initial assessment budget is estimated to be
$1,600,000.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the
budget shall remain the same. However, the City and the TSA Board shall have the authority to adjust
budget allocations between the categories by no more than fifteen percent (15%) of the total budget
per year. For example, the City and the TSA Board may fluctuate the SATMD’s budget allocation for
the Sales and Marketing category from its current seventy percent (70%) to a maximum budget
allocation of eighty-five percent (85%) or down to a minimum budget allocation of fifty-five percent
(55%). A description of the proposed improvements and activities for the initial year of operation is
below. The same activities are proposed for subsequent years. In the event of a legal challenge against
the SATMD, any and all assessment funds may be used for the costs of defending the SATMD.
Each budget category includes all costs related to providing that service. For example, the Sales and
Marketing budget includes the cost of staff time dedicated to overseeing and implementing the Sales
and Marketing program. Staff time dedicated purely to administrative tasks is allocated to the
administrative portion of the budget. The costs of an individual staff member may be allocated to
Sales and Marketing,
$1,120,000.00 , 70%Administration,
$320,000.00 , 20%
Contingency /
Reserve,
$128,000.00 , 8%
City Administration
Fee, $32,000.00 ,
2%
Initial Annual Assessment Budget -
$1,600,000
EXHIBIT 2
SATMD Management District Plan 9
February 27, 2025
multiple budget categories. The staffing levels necessary to provide the services below will be
determined by TSA on an as- needed basis.
Sales and Marketing
A Sales and Marketing program will promote assessed businesses and Santa Ana as tourist, meeting,
and event destinations. The Sales and Marketing program will have a central theme of promoting
Santa Ana as a desirable place for overnight visits. The program will have the goal of increasing
overnight visitation and room night sales at assessed businesses, and may include the following
activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive
overnight visitation and room sales to assessed businesses;
• Print ads in magazines and newspapers, television ads, and radio ads targeted at potential
visitors to drive overnight visitation and room sales to assessed businesses;
• Attendance of trade shows to promote overnight visitation to assessed businesses;
• Sales blitzes for assessed businesses;
• Familiarization tours of assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers and
maps featuring assessed businesses as well as all events, attractions, and reasons to visit (Stay,
Shop, Dine, Play);
• Attendance of professional industry conferences and affiliation events to promote assessed
businesses;
• Lead generation activities designed to attract tourists and group events to assessed businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion
efforts for assessed businesses; and
• Development and maintenance of a website designed to promote overnight visitation to the
city and promote Santa Ana as a tourism destination highlighting the assessed businesses, as
well as all events, attractions, and reasons to visit (Stay, Shop, Dine, Play) to increase overnight
visitation at assessed lodging businesses.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing
costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and
accounting fees.
City Administration Fee
The City of Santa Ana shall be paid a fee equal to two percent (2%) of the amount of assessment
collected, to cover its costs of collection and administration.
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there
are contingency funds collected, they may be held in a reserve fund or utilized for other program,
administration or renewal costs at the discretion of the TSA Board. Policies relating to contributions
to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve
fund shall be set by the TSA Board. Contingency/reserve funds may be spent on SATMD programs
or administrative and renewal costs in such proportions as determined by the TSA Board. The reserve
fund may be used for the costs of renewing the SATMD.
EXHIBIT 2
SATMD Management District Plan 10
February 27, 2025
B. Annual Budget
The total ten (10) year assessment budget is projected at approximately $1,600,000 annually, or
$24,000,000 through the ten (10) year term of the SATMD if the maximum assessment rate increases
are adopted. A similar budget is expected to apply to subsequent years, but this budget is expected to
fluctuate as room sales do, as businesses open and close, and if the assessment rate is increased or
decreased pursuant to this Plan.
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%).
The table below demonstrates the estimated maximum budget with the assumption that the
assessment rate will be increased at the earliest opportunity as it is a required disclosure, it is not the
anticipated course of action. Alternate courses of action may be taken in regard to implementing the
assessment rate increase other than what is demonstrated in the chart below, within the parameters of
this Plan.
Estimated Annual Budget if Maximum Assessment Rates Are Adopted
Year Assessment Rate Budget
2026 2.00% $1,600,000
2027 2.00% $1,600,000
2028 2.50% $2,000,000
2029 2.50% $2,000,000
2030 3.00% $2,400,000
2031 3.00% $2,400,000
2032 3.50% $2,800,000
2033 3.50% $2,800,000
2034 4.00% $3,200,000
2035 4.00% $3,200,000
Total $24,000,000
C. California Constitutional Compliance
The SATMD assessment is not a property-based assessment subject to the requirements of
Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real
property.1 Rather, the SATMD assessment is a business-based assessment, and is subject to
Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.
Two of these exceptions apply to the SATMD, a “specific benefit” and a “specific government
service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the
City of conferring the benefits or providing the services.
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
EXHIBIT 2
SATMD Management District Plan 11
February 27, 2025
1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or
privilege granted directly to the payor that is not provided to those not charged, and which does not
exceed the reasonable costs to the local government of conferring the benefit or granting the
privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed
businesses, and are intended only to provide benefits and services directly to those businesses paying
the assessment. These services are tailored not to serve the general public, businesses in general, or
parcels of land, but rather to serve the specific businesses within the SATMD. The activities described
in this Plan are specifically targeted to increase demand for room night sales for assessed lodging
businesses within the boundaries of the SATMD, and are narrowly tailored. SATMD funds will be
used exclusively to provide the specific benefit of increased demand for room night sales directly to
the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in
SATMD programs, or to directly generate sales for non-assessed businesses. The activities paid for
from assessment revenues are business services constituting and providing specific benefits to the
assessed businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into
private contracts with non-assessed lodging businesses for the provision of services to those
businesses.
The assessment imposed by this SATMD is for a specific benefit conferred directly to the payors that
is not provided to those not charged. The specific benefit conferred directly to the payors is an
increase in demand for room night sales. The specific benefit of an increase in demand for room
night sales for assessed lodging businesses will be provided only to lodging businesses paying the
district assessment, with Sales and Marketing programs promoting lodging businesses paying the
SATMD assessment. The Sales and Marketing programs will be designed to increase room night sales
at each assessed lodging businesses. Because they are necessary to provide the Sales and Marketing
programs that specifically benefit the assessed lodging businesses, the administration and contingency
services also provide the specific benefit of increased demand for room night sales to the assessed
lodging businesses.
Although the SATMD, in providing specific benefits to payors, may produce incidental benefits to
non-paying businesses, the incidental benefit does not preclude the services from being considered a
specific benefit. The legislature has found that, “A specific benefit is not excluded from classification
as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without
cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided
directly to the payor that is not provided to those not charged, and which does not exceed the
reasonable costs to the local government of providing the service or product.”4 The legislature has
recognized that marketing and promotions services like those to be provided by the SATMD are
government services within the meaning of Proposition 265. Further, the legislature has determined
that “a specific government service is not excluded from classification as a ‘specific government
service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the
payor as a consequence of providing the specific government service to the payor.”6
2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
EXHIBIT 2
SATMD Management District Plan 12
February 27, 2025
3. Reasonable Cost
SATMD services will be implemented carefully to ensure they do not exceed the reasonable cost of
such services. The full amount assessed will be used to provide the services described herein. Funds
will be managed by the TSA, and reports submitted on an annual basis to the City. Only assessed
lodging businesses will be featured in marketing materials, receive sales leads generated from SATMD-
funded activities, be featured in advertising campaigns, and benefit from other SATMD-funded
services. The assessed lodging business list was compiled from records provided by the jurisdiction
and complies with the requirements of the 94 Law. Pursuant to Streets and Highways Code Section
36615, the City Council’s determination of ownership is final and conclusive, with no obligation to
obtain other information. Non-assessed lodging businesses will not receive these, nor any other,
SATMD-funded services and benefits.
D. Assessment
The annual assessment rate is two percent (2%) of gross short term 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.
The assessment was calculated based on the total cost of the activities to be provided for the benefit
of the businesses within the SATMD, with costs allocated based on the proportional benefit conferred
to each business. Activities funded by the SATMD, are specifically targeted to increase room nights
at assessed businesses. All room night sales do not represent the same benefit to the payors. For
example, a higher priced room night is of greater benefit than a lower priced room night because the
assessee derives greater revenue. To account for this benefit differential and to make sure the benefits
are proportional, an assessment formula based on a percentage of revenue has been selected. The
proposed formula accurately reflects greater benefit to assessed businesses with higher priced room
nights.
The term “gross short-term sleeping room rental revenue” as used herein means: the total
consideration charged to transients as shown on the guest receipt for the occupancy of space in a
hotel, including charges for equipment (such as rollaway beds, cribs and television set, etc.), and in -
room services (such as movies and other services not subject to state taxes), va lued in money. The
costs of additional goods and services, which are not "rent," but which may be sold as a package with
the room (such as meals, excursions, and recreational services), must be accounted for in accordance
with the rules and regulations promulgated by the City.
EXHIBIT 2
SATMD Management District Plan 13
February 27, 2025
Gross short-term sleeping room rental revenue shall not include, and therefore the assessment shall
not be charged upon, any federal, state or local taxes collected, including but not limited to transient
occupancy taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the
assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of
assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the
amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for
payment from the business. If the SATMD assessment is identified separately it shall be disclosed as
the “SATMD Assessment.” As an alternative, the disclosure may include the amount of the SATMD
assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing
Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The
assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if
it is passed on to transients. The assessment shall not be considered revenue for calculation of
transient occupancy taxes. The California Department of Tax and Fee Administration (CDTFA)
issued a written opinion that state sales tax applies to the revenue generated from Tourism Business
Improvement District (TBID) assessments on items where state sales tax is levied. In light of
CDTFA’s opinion, businesses that pay both state sales tax and TBID assessments on sales are advised
to collect sales tax on the assessment revenue.
TSA shall not issue debt of any kind; and shall only fund expenses with recurring assessment revenue
collected or the reserve balance.
E. Interest and Overdue Charges
The SATMD shall reimburse the City for any costs associated with collecting unpaid assessments. If
sums in excess of the delinquent SATMD assessment are sought to be recovered in the same collection
action by the City, the SATMD shall bear its pro rata share of such collection costs. Assessed
businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency Overdue Charge: Any lodging business which fails to remit any assessment
within the time required shall pay an overdue charge of ten percent (10%) of the amount of
the assessment in addition to the amount of the assessment.
2. Continued Delinquency Compounding Overdue Charge: Any lodging business which fails to remit any
delinquent remittance on or before a period of thirty (30) days following the date on which
the remittance first became delinquent shall pay an additional delinquency overdue charge of
ten percent (10%) of the amount of the assessment and the ten percent (10%) overdue charge
first imposed. Any lodging business which fails to remit any delinquent remittance on or
before a period of sixty (60) days following the date on which the remittance first became
delinquent shall pay an additional delinquency overdue charge of ten percent (10%) of the
amount of the assessment and the ten percent (10%) overdue charge first imposed together
with the additional ten percent (10%) overdue charge imposed.
3. Audit Deficiency Compounding Overdue Charge: If, upon audit by the City, a lodging business is
found to be deficient in either its return or its remittance or both, the City shall immediately
assess the lodging business the amount of the net deficiency plus an audit deficiency overdue
charge of ten percent (10%) of the amount of the net deficiency. If said lodging business’s
remittance was deficient for a period of greater than thirty (30) days following the date on
which remittance was first delinquent, said lodging business shall pay an additional audit
EXHIBIT 2
SATMD Management District Plan 14
February 27, 2025
deficiency overdue charge of ten percent (10%) of the net deficiency and the ten percent (10%)
overdue charge first imposed. If said lodging business’s remittance was deficient for a period
of greater than sixty (60) days following the date on which the remittance first became
delinquent, said lodging business shall pay an additional audit deficiency overdue charge of ten
percent (10%) of the amount of the assessment and the ten percent (10%) overdue charge
first imposed together with the additional ten percent (10%) overdue charge imposed
4. Fraud: If the City determines that the nonpayment of any remittance due under this Plan is
due to fraud, an overdue charge of twenty-five percent (25%) of the amount of the assessment
shall be added thereto in addition to the overdue charges stated in subsections (1) and (2) of
this section.
5. Interest: In addition to the overdue charges imposed, any lodging business who fails to remit
any assessment imposed by this Plan shall pay interest at the rate of one and one-half percent
(1.50%) per month or fraction thereof on the amount of the assessment, exclusive of overdue
charges, from the date on which the remittance first became delinquent until paid.
6. Overdue Charges Merged with Assessment: Every overdue charge imposed and such interest as
accrues under the provisions of this section shall become a part of the assessment herein
required to be paid.
F. Time and Manner for Collecting Assessments
The SATMD assessment will be implemented beginning January 1, 2026 or as soon as possible
thereafter, and ending ten (10) years from its start date. The City will be responsible for collecting the
assessment on a monthly basis (including any delinquencies, interest and overdue charges) from each
assessed lodging business. The City shall take all reasonable efforts to collect the assessments from
each assessed lodging business. The City shall forward the assessments collected to the Owners’
Association.
EXHIBIT 2
SATMD Management District Plan 15
February 27, 2025
VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Plan, has the right, pursuant to Streets and Highways Code
§36651, to identify the body that shall implement the proposed program, which shall be the Owners’
Association of the SATMD as defined in Streets and Highways Code §36612. The City Council has
determined that TSA will continue to serve as the Owners’ Association for the SATMD.
B. Brown Act and California Public Records Act Compliance
An Owners’ Association is a private entity and may not be considered a public entity for any purpose,
nor may its board members or staff be considered to be public officials for any purpose. The Owners’
Association is, however, subject to government regulations relating to transparency, namely the Ralph
M. Brown Act and the California Public Records Act. These regulations are designed to promote
public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown
Act (Government Code §54950 et seq.). Thus, meetings of the TSA Board and certain committees
must be held in compliance with the public notice and other requirements of the Brown Act.
Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention
on that action of each member present for the action. The Owners’ Association is also subject to the
record keeping and disclosure requirements of the California Public Records Act.
C. Annual Report
TSA shall present an annual report at the end of each year of operation to the City Council pursuant
to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones
or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year.
• An estimate of the cost of providing the improvements and the activities for that fiscal year.
• The method and basis of levying the assessment in sufficient detail to allow each business
owner to estimate the amount of the assessment to be levied against his or her business for
that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous
fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments
levied pursuant to this part.
EXHIBIT 2
SATMD Management District Plan 16
February 27, 2025
APPENDIX 1 – LAW
CURRENT THROUGH ALL LEGISLATION OF THE 2024 REGULAR AND SPECIAL SESSIONS
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”
36601. Legislative findings and declarations; Legislative guidance
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are
economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate
facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of business
districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts.
(c) It is of particular local benefit to allow business districts to fund business related improvements,
maintenance, and activities through the levy of assessments upon the businesses or real property that
receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific
benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if
property, businesses, or persons not assessed receive incidental or collateral effects that benefit them.
(e) Property and business improvement districts formed throughout this state have conferred special
benefits upon properties and businesses within their districts and have made those properties and businesses
more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12 -percent reduction in the
incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the
30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business
improvement districts have become even more important tools with which communities can combat blight,
promote economic opportunities, and create a clean and safe environment.
(g) Since the enactment of this act, the people of California have adopted Proposition 218, which added
Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation
of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the
Constitution provides that property-based districts may only levy assessments for special benefits.
(h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act,
its interaction with the provisions of Article XIII D of the Constitution, and the determination of special
benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this
act, which discourages the use of assessments to fund needed improvements, maintenance, and
activities in property-based districts, contributing to blight and other underutilization of property.
(2) Activities undertaken for the purpose of conferring special benefits upon property to be
assessed inherently produce incidental or collateral effects that benefit property or persons not
assessed. Therefore, for special benefits to exist as a separate and distinct category from general
benefits, the incidental or collateral effects of those special benefits are inherently part of those
EXHIBIT 2
SATMD Management District Plan 17
February 27, 2025
special benefits. The mere fact that special benefits produce incidental or collateral effects that
benefit property or persons not assessed does not convert any portion of those special benefits or
their incidental or collateral effects into general benef its.
(3) It is of the utmost importance that property-based districts created under this act have clarity
regarding restrictions on assessments they may levy and the proper determination of special
benefits. Legislative clarity with regard to this act will prov ide districts with clear instructions and
courts with legislative intent regarding restrictions on property-based assessments, and the manner
in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy
assessments within property and business improvement districts, to ensure that those assessments conform to all
constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.
This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of
improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a
different method of levying assessments for similar or additional purposes from those set forth in this part. A
property and business improvement district created pursuant to this part is expressly exempt from the provisions of
the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with
Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law,
as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall
remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment.
(e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal
services supplemental to those normally provided by the municipality.
(f) Other services provided for the purpose of conferring special benefit upon assessed real property or
specific benefits upon assessed businesses located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and
providing activities that will provide certain benefits to properties or businesses located within a property and
business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions.
EXHIBIT 2
SATMD Management District Plan 18
February 27, 2025
36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with
Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which
includes only cities, counties, or a city and county, or the State of California .
36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission,
or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as
defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an
estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs.
(c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets.
(j) Facilities or equipment, or both, to enhance security of persons and property within the district.
(k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622.
36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement
improvements, maintenance, and activities specified in the management district plan. An owners’ association may
be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and
may not be considered a public entity for any purpose, nor may its board members or staff be considered to be
public officials for any purpose. Notwithstanding this sec tion, an owners’ association shall comply with the Ralph
M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government
Code), at all times when matters within the subject matter of the district are heard, disc ussed, or deliberated, and
with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the
Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district.
EXHIBIT 2
SATMD Management District Plan 19
February 27, 2025
36614.5. “Property and business improvement district”; “District”
“Property and business improvement district,” or “district,” means a property and business improvement district
established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property.
36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property -based assessment.
36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise
known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the
owner of the business. “Owner” means either a business owner or a property owner. The city council has no
obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership
shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property
owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the
signature of the business owner, the signature of the authorized agent of the b usiness owner shall be sufficient.
36615.5. “Special benefit”
(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over
and above general benefits conferred on real property located in a district or to the public at large. Special
benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities
of property-based districts even if those incidental or collateral effects benefit property or persons not
assessed. Special benefit excludes general enhancement of property value.
(b) “Special benefit” also includes, for purposes of a property -based district, a particular and distinct benefit
provided directly to each assessed parcel within the district. Merely because parcels throughout an
assessment district share the same special benefits does not make the benefits general.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions
This part provides an alternative method of financing certain improvements and activities. The provisions of this
part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements
or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the
Parking and Business Improvement Area Law of 1989 (Part 6 (commenci ng with Section 36500) of this division) is
valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district
A property and business improvement district may be established as provided in this chapter.
36620.5. Requirement of consent of city council
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SATMD Management District Plan 20
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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of
that city. A city may not form a district within the unincorporated territory of a county without the consent of the
board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city
without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district
(a) Upon the submission of a written petition, signed by the property or business owners in the proposed
district who will pay more than 50 percent of the assessments proposed to be levied, the city council may
initiate proceedings to form a district by th e adoption of a resolution expressing its intention to form a
district. The amount of assessment attributable to property or a business owned by the same property or
business owner that is in excess of 40 percent of the amount of all assessments proposed t o be levied, shall
not be included in determining whether the petition is signed by property or business owners who will pay
more than 50 percent of the total amount of assessments proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a summary of
the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained.
(3) Information specifying that the complete management district plan shall be furnished upon
request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of
the proposed assessment, a statement as to whether the assessment will be levied on property or
businesses within the district, a statement as to whether bonds will be issued, and a description of
the exterior boundaries of the proposed district, which may be made by reference to any plan or
map that is on file with the clerk. The descriptions and statements do not need to be detailed and
shall be sufficient if they enable an owner to generally identify the nature and extent of the
improvements, maintenance, and activities, and the location and extent of the proposed district.
(2) A time and place for a public hearing on the establishment of the property and business
improvement district and the levy of assessments, which shall be consistent with the requirements
of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each
parcel of property and, if businesses are to be assessed, each business within the district. If the assessment
will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a
business owner to reasonably determine whether a business is located within the district boundaries. If the
assessment will be levied on property and businesses, a map of the district i n sufficient detail to locate each
parcel of property and to allow a business owner to reasonably determine whether a business is located
within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for
establishment or extension in a manner sufficient to identify the affected property and businesses included,
which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a
proposed property assessment district shall not overlap with the boundaries of another existing property
assessment district created pursuant to this part. This part does not prohibit the boun daries of a district
created pursuant to this part to overlap with other assessment districts established pursuant to other
provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989
(Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business
assessment district created pursuant to this part to overlap with another business assessment district created
pursuant to this part. This part does not prohibit the boundaries of a business assessment district created
pursuant to this part to overlap with a property assessment district created pursuant to this part.
(d) The improvements, maintenance, and activities proposed for each year of operation of the district and
the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of
operation are the same, a description of the first year’s proposed improvements, maintenance, and activities
EXHIBIT 2
SATMD Management District Plan 21
February 27, 2025
and a statement that the same improvements, maintenance, and activities are proposed for subsequent years
shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and
debt service in each year of operation of the district. If the assessment is levied on businesses, this amount
may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in
each year of operation of the district is not significantly different, the amount proposed to be expended in
the initial year and a statement that a similar amount applies to subsequent years shall satisfy the
requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the
assessment in sufficient detail to allow each property or business owner to calculate the amount of the
assessment to be levied against their property or business. The plan also shall state whether bonds will be
issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum
number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.
Notwithstanding these limitations, a district created pur suant to this part to finance capital improvements
with bonds may levy assessments until the maximum maturity of the bonds. The management district plan
may set forth specific increases in assessments for each year of operation of the district.
(i) The proposed time for implementation and completion of the management district plan.
(j) Any proposed rules and regulations to be applicable to the district.
(k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers
for properties to be assessed, and a statement of the method or methods by which the expenses of a
district will be imposed upon benefited real property or businesses, in proportion to the benefit
received by the property or business, to defray the cost thereof.
(2) In a property-based district, the proportionate special benefit derived by each identified parcel
shall be determined exclusively in relationship to the entirety of the capital cost of a public
improvement, the maintenance and operation expenses of a public improvement, or the cost of the
activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of
the proportional special benefit conferred on that parcel. Only special benefits are assessable, and
a property-based district shall separate the general benefits, if any, from the special benefits
conferred on a parcel. Parcels within a property -based district that are owned or used by any city,
public agency, the State of California, or the United States shall not be exemp t from assessment
unless the governmental entity can demonstrate by clear and convincing evidence that those
publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary,
or collateral effects that arise from the improvements, maintenance, or activities of a property-
based district and that benefit property or persons not assessed shall not be deducted from the
entirety of the cost of any special benefit or affect the proportionate special benefit derived by
each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special
benefits. In a district with boundaries that define which parcels are to receive improvements,
maintenance, or activities over and above those services provided by the city, the improvements,
maintenance, or activities themselves may constitute a special benefit. The city may impose
assessments that are less than the proportional special benefit conferred, but shall not impose
assessments that exceed the reasonable costs of the proportional special benefit conferred. Because
one or more parcels pay less than the special benefit conferred does not necessarily mean that
other parcels are assessed more than the reasonable cost of their special benefit.
(l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer
certified by the State of California supporting all assessments contemplated by the management district
plan.
(m) Any other item or matter required to be incorporated therein by the city council.
36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and
hearing procedure shall comply with Section 53753 of the Government Code.
(b) If a city council proposes to levy a new or increased business assessment, the notice and protest and
hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be
EXHIBIT 2
SATMD Management District Plan 22
February 27, 2025
mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing
by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for
the public hearing. The city council may waive any irregularity in the form or content of any written
protest. A written protest may be withdrawn in writing at any time before the conclusion of the public
hearing. Each written protest shall contain a description of the business in which the per son subscribing the
protest is interested sufficient to identify the business and, if a person subscribing is not shown on the
official records of the city as the owner of the business, the protest shall contain or be accompanied by
written evidence that the person subscribing is the owner of the business or the authorized representative. A
written protest that does not comply with this section shall not be counted in determining a majority protest.
If written protests are received from the owners or author ized representatives of businesses in the proposed
district that will pay 50 percent or more of the assessments proposed to be levied and protests are not
withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the pr oposed
assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of
one year from the date of the finding of a majority protest by the city council.
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property
assessment and a new or increased business assessment, the notice and protest and hearing procedure for
the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure
for the business assessment shall comply with subdivision (b). If a majority protest is received from either
the property or business owners, that respective portion of the assessment shall not be levied. The
remaining portion of the assessment may be levied unless the improvement or other special benefit was
proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or
modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with
the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the
public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and
business improvement district that will exclude territory that will not benefit from the proposed improvements,
maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district
shall be reflected in the notice and map recorded pursuant to Section 3 6627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business
improvement district, the city council shall adopt a resolution of formation that shall include, but is not
limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of
the proposed assessment, a statement as to whether the assessment will be levied on property,
businesses, or both within the district, a statement on whether b onds will be issued, and a
description of the exterior boundaries of the proposed district, which may be made by reference to
any plan or map that is on file with the clerk. The descriptions and statements need not be detailed
and shall be sufficient if they enable an owner to generally identify the nature and extent of the
improvements, maintenance, and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention.
(3) The time and place where the public hearing was held concerning the establishment of the
district.
(4) A determination regarding any protests received. The city shall not establish the district or levy
assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district
established by the resolution shall be subject to any amendments to this part.
(6) A statement that the improvements, maintenance, and activities to be conferred on businesses
and properties in the district will be funded by the levy of the assessments. The revenue from the
levy of assessments within a district shall not be used to provide improvements, maintenance, or
activities outside the district or for any purpose other than the purposes specified in the resolution
of intention, as modified by the city council at the hearing concerning establishment of the district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the
EXHIBIT 2
SATMD Management District Plan 23
February 27, 2025
district boundaries to create a special or specific benefit to the assessed parcels or businesses may
be provided, but shall be limited to marketing or signage pointing to the district.
(7) A finding that the property or businesses within the area of the property and business
improvement district will be benefited by the improvements, maintenance, and activities funded
by the proposed assessments, and, for a property-based district, that property within the district
will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the
properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant
to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the
management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the
clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5
(commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district based upon the degree of
benefit derived from the improvements or activities to be provided within the benefit zone and may impose a
different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may
also define categories of businesses based upon the degree of benefit that each will derive from the improvements or
activities to be provided within the district and may impose a different assessment or rate of assessment on each
category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant
to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the
distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property -
based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment, modification, or disestablishment of a property and
business improvement district apply to the establishment, modification, or disestablishment of benefit zones or
categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of
business, follow the procedure to establish, modify, or disestablish a property and business improvemen t district.
36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of
Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by
the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the
same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and
penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be
charged interest and penalties.
EXHIBIT 2
SATMD Management District Plan 24
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36632. Assessments to be based on estimated benefit; Classification of real property and businesses;
Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated
benefit to the real property within the property and business improvement district. The city council may
classify properties for purposes of determining the benefit to property of the improvements and activities
provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated
benefit to the businesses within the property and business improvement district. The city council may
classify businesses for purposes of determining the benefit to the businesses of the improvements and
activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively
presumed not to benefit from the improvements and service funded through these assessments, and shall
not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the
action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to
Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after
the entry of judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would
continue after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any
modification of the management district plan shall be made pursuant to this chapter.
36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
(a) Upon the written request of the owners’ association, the city council may modify the management
district plan after conducting one public hearing on the proposed modifications. The city council may
modify the improvements and activities to be funded wi th the revenue derived from the levy of the
assessments by adopting a resolution determining to make the modifications after holding a public hearing
on the proposed modifications. If the modification includes the levy of a new or increased assessment, the
city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section
shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city
once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10
days before the public hearing, to each business owner or property owner affected by the proposed
modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the
public hearing required by this section. The public hearing shall be held not more than 90 days after the
adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant
to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
36638. Assessment as government imposed fee on Civ C § 1770 transaction [Operative July 1, 2024]
EXHIBIT 2
SATMD Management District Plan 25
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(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for
purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code.
(b) This section shall become operative on July 1, 2024.
CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the
estimated cost of some or all of the proposed improvements described in the resolution of formation
adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides
for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with
Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4
(commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either
act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although
proceedings under the Bond Act of 1915 may be modified by the city counci l as necessary to accommodate
assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements
specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of
those improvements, specify the number of annual installments and the fiscal years during which they are
to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue
estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on
any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with
the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for
which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and
activities described in the report. The owners’ association’s first report shall be due after the first year of
operation of the district. The report may propose changes, including, but not limited to, the boundaries of
the property and business improvement district or any benefit zones within the district, the basis and
method of levying the assessments, and any changes in the classification of property, including any
categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district
by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall
contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or
in any benefit zones or classification of property or businesses within the district.
(2) The improvements, maintenance, and activities to be provided for that fiscal year.
(3) An estimate of the cost of providing the improvements, maintenance, and activities for that
fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property
or business owner, as appropriate, to estimate the amount of the assessment to be levied against
his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous
fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments
levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any
particular contained in the report and approve it as modified. Any modification shall be made pursuant to
Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would
impair an authorized or executed contract to be paid from the revenues derived from the levy of
EXHIBIT 2
SATMD Management District Plan 26
February 27, 2025
assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the
district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities
The management district plan may, but is not required to, state that an owners’ association will provide the
improvements, maintenance, and activities described in the management district plan. If the management district
plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide
services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by
following the procedures for establishment as provided in this chapter.
(b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived
from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the
renewed district includes additional parcels or businesses not included in the prior district, the remaining
revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district
does not include parcels or businesses included in the prior district, the remaining revenues attributable to
these parcels shall be refunded to the owners of these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue
bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries,
assessments, improvements, or activities of a r enewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no
indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be
disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation
of law in connection with the management of the district, it shall notice a hearing on
disestablishment.
(2) During the operation of the district, there shall be a 30 -day period each year in which assessees
may request disestablishment of the district. The first such period shall begin one year after the
date of establishment of the district and shall continue for 30 days. The next such 30-day period
shall begin two years after the date of the establishment of the district. Each successive year of
operation of the district shall have such a 30-day period. Upon the written petition of the owners
or authorized representatives of real property or the owners or authorized representatives of
businesses in the district who pay 50 percent or more of the assessments levied, the city council
shall pass a resolution of intention to disestablish the district. The city cou ncil shall notice a
hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public
hearing required by this section. The resolution shall state the reason for the disestablishment, shall state
the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with
the revenues of the assessments levied within the property and business improvement district. The notice of
the hearing on disestablishment required by this section shall be given by m ail to the property owner of
each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city
shall conduct the public hearing not less than 30 days after mailing the notice to the property or business
owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of
intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district;
Calculation of refund; Use of outstanding revenue collected after disestablishment of district
EXHIBIT 2
SATMD Management District Plan 27
February 27, 2025
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all
outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired
with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the
property or businesses then located and operating within the district in which assessments were levied by
applying the same method and basis that was used to calculate the assessments levied in the fiscal year in
which the district is disestablished or expires. All outstanding assessment revenue collected after
disestablishment shall be spent on improvements and activities specified in the management district plan.
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis
that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to
calculate the amount of any refund.
EXHIBIT 2
SATMD Management District Plan 28
February 27, 2025
APPENDIX 2 – ASSESSED BUSINESSES
Business Name Business Address
Best Western OC Airport North 2700 S Hotel Terrace Dr Santa Ana, CA 92705
Comfort Inn & Suites OC John Wayne
Airport
2620 S Hotel Terrace Dr Santa Ana, CA 92705
Courtyard By Marriott 311J9 3002 S Harbor Blvd Santa Ana, CA 92704
Courtyard By Marriott Santa Ana 8 E Macarthur Pl Santa Ana, CA 92707
Lakeside Orange County Airport Hotel 7 Hutton Centre Dr Santa Ana, CA 92707
Hotel Zessa, Doubletree by Hilton 201 E Macarthur Blvd Santa Ana, CA 92707
Embassy Suites 1325 E Dyer Rd Santa Ana, CA 92705
Hampton Inn & Suites 2720 S Hotel Terrace Dr Santa Ana, CA 92705
Holiday Inn 2726 S Grand Ave Santa Ana, CA 92705
Holiday Inn Express & Suites Santa Ana 1600 E 1St St Santa Ana, CA 92701
La Quinta Inn & Suites 2721 S Hotel Terrace Dr Santa Ana, CA 92705
Mainstay Suites by Choice Hotels 2701 S Hotel Terrace Dr Santa Ana, CA 92705
Motel 6 Santa Ana 1623 E 1St St Santa Ana, CA 92701
Motel 6 Santa Ana Irvine Orange County
Airport
1717 E Dyer Rd Santa Ana, CA 92705
Red Roof Inns 2600 N Main St Santa Ana, CA 92705
Santa Ana California Lodge 2909 S Bristol St Santa Ana, CA 92704
Sonesta Simply Suites Orange County Airport 2600 S Red Hill Ave Santa Ana, CA 92705
EXHIBIT 2
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARKETING DISTRICT
We pet ition you to initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 19 94, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address Business Owner
Hampton Inn and Suites Santa Ana Peter Lee
2720 Hotel Terrace Dr
Santa Ana CA 92705
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
Peter Lee Owner
Owner /Owner Representative Name (printed) Title
Peb,; 14, 2025 11:12 PDT) 13/03/25
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARl<ETING DISTRICT
We petition you to initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address
Best Western Orange County Airport North
2700 Hotel Terrace Dr
Santa Ana, CA 92705
Business Owner
Mascot Management Corp
The undersigned is the business ow ner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
Michael Jiang GM
Owner /Owner Representative Name (printed) Title
13/03/25
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARKETING DISTRICT
We petition you to initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing serv ices as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address Business Owner
Courtyard Santa Ana Orange County Apple Hospitality
8 MacArthur Place 814 East Main Street, Richmond, V/l
Santa Ana, CA 92707
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
Alane Millar Director of Sales
Owner /Owner Representative Name (printed) Title
13/03/25 Alane Millar (Mar 13, 2025 09:53 PDT)
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARl{ETING DISTRICT
We petition you to Initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) In
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq,, for the purpose of providing services as described In the summary of the
Management Dlstr.lct Plan attached hereto as Exhibit A.
Business Establishment & Address
�dJ:@%v::z:;; bi'Pl,fS', I �i"¥/'.
/ p iJ tJ C: L l-r Srucr
Business owner
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
L.Y • J�?K&.-Owner /Owner Representative Name (prfrited) Title
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARl(ETING DISTRICT
We petition you to Initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) In
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described In the summary of the
Management Distr_ict Plan attached hereto as Exhibit A.
Business Establlshment & Address Business Owner
The undersigned is the business owner or the authorized representative of the business owner and ls
the person legally authorized and entitled to sign this petition.
Owner /Owner Representative Name (printed)
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARl<ETING DISTRICT
We petition you to Initiat e proceedings to renew the Santa Ana Tourism Marketing District (SATMD) In
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described In the summary of the
Management Dlstr.lct Plan attached hereto as Exhibit A,
Business Establishment & Address La lJo,WA l��e__.
1.9 (E S · \?Jr I �fb \ 'Dr
Business owner
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition,
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W, Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@t ravelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARKETING DISTRICT
We petition you to Initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address Business Owner
Orange County Hotel JHC Investments Inc.
7 Hutton Centre Dr.
Santa Ana, CA 92707
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
Quinn Su General Manager
Owner /Owner Representative Name (printed) Title
0u[mtSu Quinn Su (Mar 11, 2025 17:10 ron 11/03/25
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@tra velsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARKETING DISTRICT
We petition you to initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address Business Owner
Holiday Inn Orange County Airport GrandHi17
2726 S. Grand Ave GrandHi17
Santa Ana Ca. GrandHi17
92705 GrandHi17
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitle d to sign this petition.
Frank Atayde General Manager
Owner /Owner Representative Name (printed) Title
10/03/25
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARKETING DISTRICT
We petition you to initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address Business Owner
Hotel Zessa, a DoubleTree by Hilton Imperia l Hotel Group, LLC
201 E. MacArthur Blvd.
Santa Ana, CA 92707
The undersigned is the business owner or the auth orized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
Aaron Saliba General Manager
Owner /Owner Representative Name (printed) Title
Aaton ,7. Saliba, GM Aaron J. Saliba, GM (Mar 11, 202512:12 PDT) 11/03/25
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@trav elsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARKETING DISTRICT
We petition you to initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address Business Owner
Sonesta Simply Suites Sonesta International
2600 Redhill Ave SVC
Santa Ana CA 92705
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
Daniel Fermin General Manager
Owner /Owner Representative Name (printed) Title
JJa.niet rennin Danlf:l Fermlr1 (Mar 11, 202511:16 PD11 11/03/25
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARKETING DISTRICT
We petition you to initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address Business Owner
EMBAS SY SUITES SANTAANA AMPHIT RITE HOTEL LLC
1325 E DYER RD
SANTA ANA, CA 92705
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
DY MO NCADA REGIONAL CORPORATE SALES DIRECTOR
Owner /Owner Representative Name (printed) Title
JJ!;} Moncavta
01 Uonc..1di1 {Apr 4, 202515:04 PDT)
04/04/25
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
PETITION TO THE CITY OF SANTA ANA
TO RENEW THE SANTA ANA TOURISM MARKETING DISTRICT
We petition you to initiate proceedings to renew the Santa Ana Tourism Marketing District (SATMD) in
accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code
section 36600 et seq., for the purpose of providing services as described in the summary of the
Management District Plan attached hereto as Exhibit A.
Business Establishment & Address Business Owner
Motel 6 Harshad Patel
1623 E. First Street
Santa Ana CA 92701
The undersigned is the business owner or the authorized representative of the business owner and is
the person legally authorized and entitled to sign this petition.
Cassey Hubbard
Owner /Owner Representative Name (printed)
General Manager
Title
04/04/25
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete
copy of the Management District Plan should be made to:
Wendy Haase-Roberts
Travel Santa Ana
1631 W. Sunflower Ave, C-35
Santa Ana, CA 92704
714-242-4434 I wendy@travelsantaana.com
EXHIBIT 3
2024 ANNUAL REPORT
EXHIBIT 4
Travel Santa Ana is the official Destination Marketing Organization (DMO) for Santa Ana.
Travel Santa Ana is dedicated to promoting the city as a desirable Orange County destination
for business, leisure, meetings, sports, and group travel.
Travel Santa Ana is a non-for-profit, 501 C (6), funded by a 2% assessment implemented by the
Santa Ana Tourism Marketing District (SATMD). The SATMD is comprised of 17 hotels and motels
with (70) rooms or more within the boundaries of the City of Santa Ana. The assessment is paid for
by visitors who stay at those hotels and motels.
2024-2026 Travel Santa Ana Board of Directors
Chair: Aaron Saliba, General Manager, Hotel Zessa a DoubleTree by Hilton
Vice Chair: Alissa Salma, General Manager, Courtyard Santa Ana/Orange County
Past Chair: Julie Buettner, General Manager, Courtyard Costa Mesa South Coast Metro
Treasurer: Ryan Chase, Owner, 4th Street Market
Secretary: Erin Warady, Marketing Chair/CMO, Cannabis Chamber of Commerce
At-Large:
Frank Atayde, General Manager, Holiday Inn Orange County Airport
Marc Morley, Economic Development Manager, City of Santa Ana
Cory Sams, General Manager, MainPlace Mall
Quinn Su, General Manager, Doubletree by Hilton Orange County Airport
Marketing Advisory Group
Amanda Blazey, Director of Marketing, Orange County School of the Arts
Logan Crow, Executive Director & Founder, Frida Cinema/DTSA Artwalk
Paul Eakins, Public Affairs Information Officer, City of Santa Ana
Cori Lantz, Recreation & Community Services Supervisor, City of Santa Ana Parks & Recreation
Scott Melvin, Vice President of School Relations, Mater Dei High School
Kelly Radomske, Vice President of External Affairs, Bowers Museum
Maribel Silva, Operations Coordinator, Santa Ana Zoo
Daniela Valencia, Marketing Director, MainPlace Mall
Jason (J-Bird) Venable, Co-Founder, Suavecito
Erin Warady, Marketing Chair/CMO, Cannabis Chamber of Commerce
Cherie Whyte, Vice President, Marketing, Discovery Cube
WENDY HAASE-ROBERTS, CDME
President & CEO
ANALAURA BECERRA, CDME, CMP, CTA
Director of Sales
MARIA GONZALEZ, PDM, CTA
Content & Community Engagement Manager
staff
about travel santa ana
EXHIBIT 4
about travel santa ana
mission
To share Santa Ana with the world.
values
Passion
We are passionate in
our efforts to strengthen
our community’s
economic vitality.
inclusiveness
We are diverse
and inclusive.
All are welcome.
collaboration
We value and respect
each other, and recognize
we are stronger when we
work together.
relevance
We are valued in our
community for our
leadership, expertise,
and integrity.
awareness
We are aware of our
community’s cultural
heritage and history and
continue to ask questions
and learn.
vision
Santa Ana is the authentic & welcoming Orange County experience.
about travel santa ana
EXHIBIT 4
The Santa Ana Tourism Marketing District (TMD) includes lodging businesses,
existing and in the future, available for public occupancy within the boundaries of
the City of Santa Ana. The boundary, as shown in the map below, currently includes
seventeen (17) lodging businesses that have seventy (70) rooms or more.
boundaries
EUCLID ST.NEWHOPE ST.FLOWER ST.BROADWAYBROADWAYMAIN ST.1st ST.1st ST.FLOWER ST.HARBOR BLVD.HARBOR BLVD.FAIRVIEW ST.FAIRVIEW ST.RAITT ST.GRAND AVE.RAITT ST.BRISTOL ST.BRISTOL ST.FAIRVIEW ST.EDINGER AVE.
MCFADDEN AVE.MCFADDEN AVE.
17th ST.
GARDEN GROVE BLVD.
SANTA ANA BLVD.
17th ST.
SANTA CLARA AVE.TUSTIN AVE.WARNER AVE.
DYER RD.
SEGERSTROM AVE.
MACARTHUR BLVD.
WARNER AVE.
405
55
55
22
22
CIVIC CENTER DR.MAIN ST.5
3rd ST.
4th ST.
EXHIBIT 4
boundaries
Name Location # Rooms Meeting Space
Best Western Plus Orange County Airport North 2700 Hotel Terrace Drive 148 1 Room, 800 sq. ft.
California Lodge Suites 2909 S. Bristol St.181 Guestrooms only
Comfort Inn & Suites Orange County John Wayne Airport 2620 Hotel Terrace Drive 127 Guestrooms only
Courtyard Costa Mesa South Coast Metro 3002 S. Harbor Blvd.145 3 Rooms, Largest 676 sq. ft. 1,553 sq. ft. total
Courtyard Marriott Santa Ana 8 MacArthur Place 155 4 Rooms, Largest 3,953 sq. ft., 5,059 sq. ft. total
DoubleTree Santa Ana - Orange County Airport 7 Hutton Center Drive 168 5 rooms, Largest 1,848 sq. ft., 3,976 sq. ft. total
Embassy Suites - Santa Ana Orange County Airport 1325 E. Dyer Road 301 9 Rooms, Largest 4,407 sq. ft., 7,629 sq. ft. total
Hampton Inn & Suites Santa Ana Orange County Airport 2720 Hotel Terrace Drive 121 1 Room, 400 sq. ft.
Holiday Inn Express & Suites Santa Ana Orange County 1600 E. 1st St.161 8 Rooms ( 1 per floor), Each 600 sq. ft.
Holiday Inn Santa Ana Orange County Airport 2726 S. Grand Ave.176 5 Rooms, Largest 1,866 sq. ft., 5,000 sq. ft. total
Hotel Zessa a DoubleTree by Hilton 201 E. MacArthur Blvd.253 5 rooms, Largest 7,308 sq. ft., 8,638 sq. ft. total
La Quinta by Wyndham Orange County Airport 2721 Hotel Terrace Drive 180 Guestrooms only
MainStay Suites Orange County John Wayne Airport 2701 Hotel Terrace Drive 176 Guestrooms only
Motel 6 Santa Ana/Irvine Orange County Airport 1717 E. Dyer Road 150 Guestrooms only
Motel 6 Santa Ana 1623 E. 1st St.80 Guestrooms only
Red Roof Inn Santa Ana 2600 N. Main St.125 Guestrooms only
Sonesta Simply Suites Orange County Airport 2600 S. Red Hill Ave.122 Guestrooms only
TOTAL GUESTROOMS 2,770
santa ana hotel inventory
EXHIBIT 4
Santa Ana Hotel Inventory: 2,770 rooms at 17 Hotels
*DoubleTree rebranded to Hotel Zessa a DoubleTree by Hilton
Hotel Annual Revenue: Over $76 Million*
Hotel Visitor Tax: $9.4 Million
Tourism Marketing District Collections: $1.5 Million
Hotel Average Daily Rate: $122.49*
Hotel Occupancy: 69%*
hotel overview
*Includes 15 of the 17 TMD hotels. Santa Ana CA Lodge and Red Roof Inn do not report to STR,
the global leader in hospitality data benchmarking, analytics, and marketplace insights.
EXHIBIT 4
tourism matters
2023 direct travel impacts to santa ana
$414.7 million
direct travel spending
YOY 9.2%
940,341 visitors YOY 5%
2,980 SANTA ANA JOBS ARE SUPPORTED BY VISITORS EQUALING $135.6 MILLION IN WAGES TO SANTA ANA’S ECONOMY!
$27.1 million
IN TAXES BY DIRECT TRAVEL SPENDING
EXHIBIT 4
tourism revenue helps to support:
ARTS &
CULTURE
PARKS & RECREATION
PUBLIC SAFETY
PUBLIC INFRASTRUCTURE
NEIGHBORHOOD SERVICES
Santa Ana households would pay $195 more a year in local taxes
without visitor-generated taxes received by local government.
SANTA ANA’S
MAJOR VISITOR
SPENDING
CATEGORIES
$109 million Dining
$107 million Accommodations
$81.5 million Arts, entertainment, & recreation
$63 million Local transportation & gas
$36.8 million Retail sales
$16.7 million Food stores
tourism matters
These numbers are estimates from the Economic Impact of Travel report, Calendar Year 2023, a tourism economic impact study conducted by Dean Runyan Associates for Santa Ana.
EXHIBIT 4
TOP 10 VISITOR MARKETS % VISITORS % VISITOR SPEND AVG. VISITOR SPEND
Los Angeles CA 13.6%2.1%$102
San Diego CA 12.9%3.4%$105
Phoenix AZ 8.6%3.4%$134
San Francisco-Oakland-San Jose CA 7.3%7.9%$120
Las Vegas NV 5.8%2.3%$136
Sacramento-Stockton-Modesto CA 4.4%2.8%$119
Fresno-Visalia CA 2.7%1.2%$137
Palm Springs CA 2.2%0.7%$103
Salt Lake City UT 2.1%2.6%$102
Dallas-Ft. Worth TX 2.1%2.9%$142
MEXICO
STATE MAJOR SPENDING CATEGORY
Baja California Retail
Baja California Arts & Entertainment
Baja California Accomodations
Baja California Food
Baja California Colleges & Universities
Baja California Attractions
Baja California Medical
Jalisco Retail
Michoacán Retail
Baja California Education
CANADA
PROVINCE MAJOR SPENDING CATEGORY
Nova Scotia Food
Ontario Retail
Ontario Food
Ontario Accomodations
British Columbia Arts & Entertainment
Manitoba Food
British Columbia Retail
British Columbia Accomodations
Ontario Arts & Entertainment
Manitoba Accomodations
AverAge visitor spend $169 All mArkets
VISITORS AGED 25 TO 5460%% OF VISITORS - $100K+57%% OF VISITORS WITH
CHILDREN IN HOUSEHOLD38%
visitor profile
SAN FRANCISCO NEW YORK
CHICAGO
DALLAS
HOUSTON
PHOENIX
LAS VEGAS
demogrAphics
meXico & cAnAdA mArket overvieW
top origin mArkets
Visitor data tracked by Zartico.
EXHIBIT 4
the
community
vitality
wheel
It Starts With A Visit
You Need To Keep
The Wheel Turning and
Manage Its Speed
That is the
Work at a
Destination
Organization
From Visit,
To Live,
To Work,
To Invest
1.VISIT
If you built a place where
people want to visit, then
you have built a place
where people want to live.
4.invest
And if you built a place where
business and residents will invest,
then you have built a place where
people will want to visit.
2. live
And if you built a place
where people want to live,
then you have built a place
where people want to work.
3. work
And if you built a place
where people want to
work, then you have built
a place where business and
residents will invest.
the worK of a
destination organiZation
EXHIBIT 4
• Amplify audience exposure to the brand across all touchpoints of the travel planning journey.
• Cultivate third-party meeting planner relationships that amplify and magnify the city’s sales impact in the
marketplace, including attending sales missions and tradeshows.
• Develop creative marketing campaigns that drive awareness and bookings.
• Implement a strategic marketing mix that drives conversions from target demographics.
• Test and track each marketing initiative to optimize performance.
• Adjust campaigns on an ongoing basis to reach key performance metrics for the highest ROI.
strategies
goals
• Build awareness of Santa Ana’s assets and destination by storytelling through video, imagery, and content.
• Position Santa Ana as a desirable Southern California meeting location for appropriate groups both domestic
and international.
• Drive measurable web traffic through a mix of earned, paid, and owned media.
• Support hotels’ efforts to increase bookings by prospecting select drive centric geographic markets,
high inbound air flight traffic locations and small market states.
sales and
marKeting
Travel Santa Ana
community
alignment
sustainable
organiZation
the worK of a
destination organiZation
EXHIBIT 4
client events & FAm tours:
Hosted client events in Chicago, Greenville, Las Vegas, Mexico City, Miami,
Milwaukee, Phoenix, Sacramento, and Vancouver.
Hosted 2 Familiarization (FAM) Tours for qualified meeting planners.
$9.3 million
in potential hotel revenue
17 site inspections
1,179 appointments24
tradeshows
101
qualified leads
sales highlights
Sacramento-based meeting planners explore DTSA.IPW attendees visit Suavecito HQ during a SoCal FAM.
EXHIBIT 4
road & trade show highlights
Visit CA Canada Mission
January
Calgary • Edmonton • Vancouver
Travel Agent Appointments:
60+ (Edmonton)
80+ (Calgary)
100+ (Vancouver)
Brand USA Mexico Mission
February
Guadalajara • Mexico City
Appointments:
53 travel agents representing 41 organizations
Plus, presentation to 150 travel agents in
Guadalajara & 185 travel agents in Mexico City
U.S. Travel Association’s IPW
May
Los Angeles
Appointments:
40 international buyers
39 international media
Plus, co-hosted reception with Visit Buena Park
for Mexican media with over 100+ attending.
Visit California Roadshow East
June
Chicago • Washington D.C.
Meeting Planner Appointments:
33 Chicago + networking
42 D.C.
Connect Marketplace
August
Milwaukee
Meeting Planner Appointments: 47
Plus, presentation to 125 meeting planners
Visit Anaheim Canada Roadshow
November
Calgary • Edmonton • Vancouver
Meeting Planner Presentations:
88 Calgary
136 Edmonton
150 Vancouver
CalSAE’s Seasonal Spectacular
December
Sacramento
9 appointments
Plus, breakfast sponsorship for 250 qualified
association buyers & played Loteria with 118
attendees.
• CA DMO Alliance
• CalSAE Elevate
• Connect Spring & West
• HPN Global & Partner Conference
• HelmsBriscoe ABC
• Meetings Today Live
• Northstar’s Independent
Planners, Destination West
& Destination California
• Small Market Meetings
• Smart Meetings National
• Southern California Chapter of MPI
• Student Youth Travel Association
• TEAMS
AdditionAl roAd & trAde shoWs Attended
EXHIBIT 4
marKeting & pr highlights
website pageviews: 571,891
top 5 pAges:
1. Your Guide to the Heart of Orange County
2. Santa Ana Events
3. Fun Things to Do in Santa Ana: Attractions & Sights
4. Eat
5. Santa Ana Public Art Guide: Street Murals & Sculptures
visitors guide
Mailed: 170
Downloaded: 464
(427 English, 37 Spanish)
Impressions: 28,393
(10,232 English, 18,161 Spanish)
Printed guide is distributed at
California Welcome Centers, Santa Ana
hotels, John Wayne Airport, and other
locations. The digital version is available in
English and Spanish.
1,017 scans
Top scanned campaigns:
• Website Promotional Table Tents
• Michelada Guide
• Spanish Visitor Guide
Rack Cards
• San Diego Cannabis
Postcards
547.47% increasemonthly neWsletter 1,022 New Subscribers
AN INCREASE OF 130.7%
• Food Fun & Faraway Places: 91.2K IG Followers
• TheTravelMom: 74.9K IG Followers
• JustinPlusLauren: 64.1K IG Followers
• Peter Greenberg: 51K IG Followers
• ConnieGoogleQueen: 22K TikTok Followers
• Exploreytion: 14.7K IG Followers
eArned mediA
Travel Santa Ana’s public relations efforts
earned media coverage in the following:
• Avin Medios • Impact OC • Pasillo Turistico
• Periodismo y Ambiente Descubre
• Radio Formula • Smart Meetings • Teleformula
• The Packed Bag • The Passenger
• Travel Times • U.S. Travel News
inFluencers &
mediA hosted
trAckAble qr codes
EXHIBIT 4
marKeting & pr highlights
Impressions: 4.09M
(an increase of 43%)
Engagements: 136.7K
(an increase of 5.7%)
Post Link Clicks: 79.7K
(an increase of 2.3%)
Engagement Rate: 3.3%
social media highlights
@travelsantaana
overvieW
Posts = 346
Overall Spend = $16.3K
Impressions = 4.06M
Link Clicks = 123K
Cost-Per-Click = $0.21
Click-Thru Rate (CTR) = 2.59% ThruPlays = 1.7K
Cost Per ThruPlay = $9.65
Top Producing Ads or Boosts
Blading Cup 2024 = 59K Clicks
Santa Ana Michelada Guide = 52K Clicks
Dia De los Muertos Celebrations = 28K Clicks
San Diego Market Campaign = 27K Clicks
video stAts
Impressions = 46,203
Views = 28.8K
Hours Watched = 479.3
Impressions CTR = 2.9%
Top Performing Videos
Always Bet on Us - Proud Santaneros Series 1
Discover Santa Ana - Destination Video
Santa Ana Is United by Originality - :30 Destination Video
EXHIBIT 4
advertisingadvertising highlights
“Always-On” Campaign
• 7,835 Room Nights | $1,075,112 in Hotel Revenue
OC Campaigns
• 47,318 Room Nights | $6,470,882 in Hotel Revenue
Mexico Campaign
• 4,443,153 Total Impressions
• 6,384 Total Clicks
• $37,871 Total Bookings
• 264 Room Nights
• CTR = 0.14%
• Page Views = 40,618
• Number of Flight Bookings = 6
Orange 142*
Mexico Campaign
• 3,515,118 total impressions served to users in Mexico
• 68,818 total clicks back to the website for an
overall CTR of 1.96%
• Video instream completed view rate 88.5%
• 286,912 completed views, for a :30 video that
equated to 143,456 minutes or 2,391 hours
*Three-month campaign
TACTIC INDUSTRY AVERAGE PERFORMANCE CAMPAIGN PERFORMANCE
Display .10% CTR 0.21% CTR
In-need (behavioral)~.30 CTR (estimated)0.76% CTR
Instream Video N/A 64% VCR
Instream Video Clicks N/A 4.84%
Meta .90% CTR 4.67% CTR
Retargeting N/A 0.25% CTR
Native .30% CTR 1.04% CTR
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advertising
SSanta Ana, CA is unlike any other destination anta Ana, CA is unlike any other destination
in Orange County. Discover a community in Orange County. Discover a community
rich in culture offering attendees authentic rich in culture offering attendees authentic
flavors reflective of our diversity and an art flavors reflective of our diversity and an art
scene that is a mix of funky and folk, including scene that is a mix of funky and folk, including
200+ murals. Unique venues from historic to art 200+ murals. Unique venues from historic to art
deco are perfect for off-site event locations. deco are perfect for off-site event locations.
The city’s year-round celebrations further The city’s year-round celebrations further
enhance the meeting experience.enhance the meeting experience.
MEETINGS IN
ARE
DIFFERENT
TravElSaNTaaNa.coM
coNTacT aNalaura BEcErra,,
Director of SalesDirector of Sales, , Travel Santa AnaTravel Santa Ana, ,
analaura@travelsantaana.comanalaura@travelsantaana.com
Every building has its own personality. Each Street
is totally different. I just love hearing the sounds of
the city: the cars, the music, the people talking.
It’s just very rich and diverse. I love this city!
-Delilah Snell, owner Alta Baja Market
Print & Digital
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special projects
Created the Culinary Passport to highlight the diversity of Santa Ana’s dining. The Passport
features nearly 40 restaurants and provides information on what makes them special along
with a must-try menu item. Visitors are encouraged to share their experience on social with
the hashtag #CulinaryPassportSA
Created the Michelada Guide to highlight the iconic Mexican cocktail and
showcase two dozen Santa Ana restaurants and bars that offer their own unique
versions. Visitors are encouraged to share their experience on social with the
hashtag #MicheladaManiaSA
Launched a complimentary training program for everyone, from frontline
hospitality employees and tourism partners to city officials and residents
passionate about Santa Ana. The program provides an overview of the
tourism industry’s importance to the community and what makes Santa
Ana unique to help better promote the destination to visitors. Those who
complete the program receive an official enamel pin.
Worked with Peter Greenberg Worldwide Productions to film a segment of “Hidden
Gems” featuring Alta Baja Market, the Blue Lot, Cerveza Cito, Lyon Air Museum,
the Santa Ana Zoo, and THEM Skates. The segments are expected to air on PBS and
AppleTV+ this year.
EYE ON TRAVEL
Recorded an “Eye on Travel” radio program with Peter Greenberg featuring
Logan Crow of the Frida Cinema, Cat Decker with Friends of the Santa Ana Zoo,
Tim Rush, a historian with Preserve Orange County, Hawk Scott with the City of Santa
Ana Parks and Recreation, and Dr. Tianlong Jiao, the curator for the Bowers Museum.
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Created a custom Santa Ana Lotería set featuring iconic
buildings, attractions, events, and more. The game
includes a glossary that provides information on each
visual and its relevance to Santa Ana.
Created custom Santa Ana
stickers and pins featuring
iconic buildings, attractions,
events, and more.
The third series of “Proud Santanero” features two locals
answering the question “what makes them a Proud
Santanero.” The locals include:
• Jon Julio, Owner, THEM SKATES & Blading Cup
• Tim Rush, Historian, Preserve Orange County
The video series is promoted on YouTube
and a designated website landing page.
Partnered with local artist, Ali Coyle, to create the fifth signature within
the series. The unique signatures replace a traditional destination logo
and are interchangeable throughout marketing materials.
Ongoing
Stickers and Pins”
orange county
RESTAURANTweek
special projects
Loteria
travelsantaana.comtravelsantaana.com
collectible enAmel pin
travelsantaana.com
The annual Blading Cup brings skating competitors
from over 20 countries to Downtown Santa Ana.
collectible enamel pin
@TravelSant
a
A
n
a
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GOLD:
Official Santa Ana Visitors Guide (Print)
Santa Ana Public Art Guide (Landing Page)
HONORABLE MENTION:
Travel Santa Ana Signatures (Logo)
TravelSantaana.com (Website)
Santa Ana Stickers (Collateral/Branding)
PLATINUM: TravelSantaana.com (Website)
GOLD: Santa Ana Public Art Guide (Landing Page)
HONORABLE MENTION: Proud Santanero (Video)
PLATINUM: Discover Santa Ana (Video)
PLATINUM: Discover Santa Ana (Video)
GOLD: TravelSantaana.com (Website)
HONORABLE MENTION:
Santa Ana Public Art Guide (Landing Page)
SILVER: TravelSantaAna.com
Outstanding Website
GOLD: Discover Santa Ana (Video)
SILVER:
TravelSantaAna.com (Website)
Santa Ana Mexico Campaign Digital Marketing
(Campaign)
GOLD:
Discover Santa Ana (Video)
Proud Santaneros (Video)
Signatures (Logos)
SILVER: Santa Ana Loteria (Branded Content)
PLATINUM: 2023 Annual Report (Publications)
GOLD: Santa Ana Mexico Campaign Digital
Marketing (Campaign)
HONORABLE MENTION:
Official Visitors Guide (Publication)
awards
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2024 travel santa ana budget
$1.9* million
2024 santa ana tourism
marKeting district revenue
$1.5 milllion
financial report
Category Budgeted Actual
Revenue
Tourism Marketing District Revenue $1.9* Million $1.5 Million*
Expenditures
Sales & Marketing $1.7 Million $1.5 Million
Administration & Operations $143,350 $165,800
Reserve $0 $980,900
City Fees $36,000 $31,000
TOTALS $1,879,350 $2,677,700
*Projected TMD revenue for 2024 was $1.6M, the budget includes carryover revenue from 2023.
SALES & MARKETING: 80% RESERVES: 8%
CITY FEE: 2% ADMINISTRATION: 10%
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financial report
assessMent
There is no change in the method and basis of levying the assessment. The annual assessment rate is two percent (2%) of gross short-term
room rental revenue. Based on the lack of benefit received, assessments will not be collected on revenue resulting from: stays of more
than thirty (30) consecutive days; 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 that any nonprofit organization which, as the result of a disaster, provides at its own expense
hotel or motel shelter to any victim of a disaster.
The term “gross room rental revenue” as used herein means: the total consideration charged, whether or not received, for the
occupancy of a space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all
receipts, cash, credits, property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental
revenue shall not include any federal, state, or local taxes collected, including but not limited to hotel visitor taxes. The assessment is
levied upon and a direct obligation of the assessed lodging business.
However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment,
if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other
applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the
“SATMD Assessment.” The assessment is imposed solely upon and is the sole obligation of the assessed lodging business even if it is
passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of hotel visitor taxes.
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www.travelsantaana.com
#TravelSantaAna @TravelSantaAna
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