HomeMy WebLinkAbout13 - TBID Management District Plana
TO:
CITY OF
NEWPORT BEACH
City Council Staff Report
Agenda Item No. A,-j-
December 10. 2013
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan
APPROVED: 4�,, fell A,
v v
TITLE: Public Meeting on the Proposed Modification of the Newport Beach
Tourism Business Improvement District's Management District Plan
ABSTRACT:
The Newport Beach Tourism Business Improvement District (NBTBID) Owner's
Association desires to modify the NBTBID's Management District Plan (MDP) to shorten
the NBTBID's current term to expire on January 31, 2014 rather than on April 28, 2014.
The modified term would enable efforts to renew the NBTBID to commence
immediately.
RECOMMENDATIONS:
Hold a public meeting on the proposed modification of the NBTBID's MDP.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this modification to the
NBTBID's Management District Plan. The City of Newport Beach collects the member
assessments on behalf of the NBTBID and retains 0.25% of 1% of the total
assessments collected to reimburse the City for administrative costs associated with the
NBTBID.
DISCUSSION:
Background
The NBTBID was formed by the City of Newport Beach (City) on April 28, 2009,
pursuant to the Property and Business Improvement District Law of 1994 (the 1994
Public Meeting on the Proposed Resolution of Intention to Modify the Term of the
Newport Beach Tourism Improvement District
December 10, 2013
Page 2
Law), Streets and Highways Code Sections 36600 et seq. In April 2012, at the request
of the NBTBID Owner's Association, the City Council modified the NBTBID's
Management District Plan to add another lodging business, the Newport Dunes
Waterfront Resort and Marina. The NBTBID currently has seven members including the
Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Newport Dunes
Waterfront Resort and Marina, the Newport Beach Marriott Bayview, the Newport Beach
Marriott Hotel & Spa, the Radisson Newport Beach, and the Balboa Bay Club and
Resort. The NBTBID is in the final year of a five -year term and is scheduled to expire on
April 28, 2014.
Under an agreement with the City, Visit Newport Beach, Inc. (VNB) serves as the
NBTBID's Owner's Association. VNB oversees the NBTBID's administration and
coordinates its marketing and sales activities as prescribed by the NBTBID committee.
The committee is comprised of representatives from the seven member lodging
businesses.
As presented during the City Council's November 26 Study Session, VNB has indicated
that the member lodging businesses wish to renew the NBTBID for an additional ten
(10) years, add another member (The Island Hotel), and increase the assessment from
two percent (2 %) to three percent (3 %) of gross short -term room rental revenue. The
additional revenues generated by the proposed changes would be used to expand the
NBTBID's sales and marketing efforts and the 10 -year term would allow for long -range
planning and stability. The Owner's Association asked the City to initiate the renewal
process before the end of 2013, rather than wait until the spring of 2014, to potentially
capture the additional revenues generated by the proposed increased assessment and
the addition of The Island Hotel. The change would also enable The Island Hotel to
participate in the TBID marketing and sales programs earlier in the new year.
Since the 1994 Law does not allow for a tourism business improvement district to be
renewed until its existing term is expired, the NBTBID's current term must be modified in
order for the renewal process to begin immediately. Therefore, it is necessary to shorten
the NBTBID's current term from five years to four years and nine months in the
Management District Plan.
Modification Process
The process to modify the NBTBID Management District Plan requires three steps. The
first was accomplished during the City Council's November 26 Regular session, when
Council approved Resolution No. 2013 — 87, A Resolution of Intention to Modify the
Management District Plan of the Newport Beach Tourism Business Improvement
District (staff report attached). As required by the California Streets and Highways
Code, a copy of the resolution was mailed to every member business and published in
Public Meeting on the Proposed Resolution of Intention to Modify the Term of the
Newport Beach Tourism Improvement District
December 10, 2013
Page 3
the Daily Pilot newspaper. The second step in the modification process is to hold a
public meeting to receive public testimony on the matter. This will be accomplished
during the Council's December 10, 2013 Regular meeting. The final step is to hold a
public hearing to provide an additional opportunity for public comment on the proposed
modification and for the Council to adopt a resolution to formally approve the modified
MDP. The hearing is scheduled for January 28, 2014.
ENVIRONMENTAL. REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Tara Finnigan
Public Information Manager
Attachments: A. November 26, 2013 Staff Report
CITY OF
o M n
NEWPORT BEACH
City Council Staff Report
FTAV MIT, T�ii %1
Agenda Item No. 10
November 26, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949- 644 - 3002, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan
APPROVED: 1, \
TITLE: Resolution No. 2013 - 87 A Resolution of Intention to Modify the
Management District Plan of the Newport Beach Tourism Business
Improvement District
ABSTRACT:
The Newport Beach Tourism Business Improvement District (NBTBID) Owner's
Association is seeking a modification to the NBTBID's Management District Plan to
shorten the NBTBID's current term to expire on January 31, 2014 rather than on April
28, 2014. The new term enables efforts, to renew the NBTBID to commence
immediately, thus expediting the NBTBID's Owner's Association's proposal to add a
new member to the NBTBID, increase the assessment amount, and request a new
term.
RECOMMENDATIONS:
1. Approve Resolution No. 2013 - 87 .A Resolution of Intention to Modify the
Management District Plan of the Newport Beach Tourism Business Improvement
District; and
2. Direct the City Clerk to provide notice of the public meeting and public hearing, as
required by the California Streets ,and. Highways Code.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this modification to the
NBTBID's Management District Plan. The City of Newport Beach collects the member
assessments on behalf of the NBTBID and retains 0.25% of 1% of the total
November 26, 2013
Page 2
assessments collected to reimburse the City for administrative costs associated with the
NBTBID.
DISCUSSION`
'The NBTBID was formed by the City of Newport Beach. (City) on April 28, 2009,
pursuant to the Property and Business Improvement District Law of 1994 (the 1994
Law), Streets and Highways Code Sections 36600 et seq. In April 2012, at the request
of the NBTBID Owner's Association, the City Council modified the NBTBID's
Management District Plan to add another lodging, business, the Newport Dunes
Waterfront Resort and Marina. The NBTBID now has seven members including the
Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Newport. Dunes
Waterfront Resort and Marina, the Newport Beach Marriott Bayview, the Newport Beach
Marriott Hotel & Spa, the Radisson Newport Beach, and the Balboa Bay Club and
Resort. The NBTBID is in the final year of a five -year term and is scheduled to expire
on April 28, 2014.
Under an agreement with the City, Visit Newport Beach; Inc. (VNB) serves as the
NBTBID's O,wner's Association. VNB oversees the NBTBID's administration and
coordinates its marketing and sales activities as prescribed by the NBTBID committee.
The committee is comprised of representatives from the seven member lodging
businesses.
VNB has indicated that the member lodging businesses wish to "renew the NBTBID for
an additional ten (10) years, add another member (The Island Hotel), and increase the
assessment from two percent (2 %) to three percent (3 %) of gross short-term room
rental revenue. The additional revenues generated by the proposed changes would be
used to expand the NBTBID's sales and marketing efforts and the 10 -year term would
allow for long -range planning and stability: The NBTBID renewal and proposed changes
outlined above will be brought to the City 'Council for review and approval or
modification at a public meeting and public hearing.
The 1994 Law does not. allow for a tourism business improvement district to be renewed
until its existing term is expired. The Owners Association would like to begin the
renewal process before the end of 2013 — rather than wait until the spring of 2014 — to
potentially capture the additional revenues generated. 'Therefore, it is necessary to
shorten the NBTBID's current term from five years, to four years and nine months in the
Management District Plan.
If approved, Resolution No. 2013 - 87 would. be mailed to every ,member business and
published in the Daily Pilot newspaper. A public meeting on this, matter would be held
on December 10, 2013 and a public hearing on 'the proposed modification of the
November 26, 2013
Page 3
NBTBID's Management District Plan would be held on. January 14, 2014. 1f approved,
the NBTBID would expire on January 31, 2014.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct. or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3', because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72, hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
LC,-AN
Dave Kiff
City Manager
Attachments: A. November 14, 2013 Letter Requesting NBTBID Modification
B. Redline NBTBID Management District Plan
C. Clean — NBTBID Management District Plan
D. Resolution No. 2013 87
CITY OF NEWPORT BEACH
RECEIVED B
NOV 14 2013
OFFICE OF THE
November 14, 2013
City of Newport Beach
Attn: Michael Torres
100 Civic Center Drive
Newport Beach, CA 92660
Re: Newport Beach TBID Modification
Dear Mr. Torres,
Attachment A
VISIT re 7EA Q%t
C H I NC.
Pursuant to Streets and Highways Code section 36635, Visit Newport Beach hereby
requests modification of the Newport Beach Tourism Business Improvement
District.
The TBID was created in 2009 with a five -year term, running May 1, 2009 through
April 31, 2014. We hereby request a modification of that term, shortening it to
expire concurrently with completion of the renewal process now underway. It is
expected that the renewed district will begin operations February 1, 2014;
accordingly, we request that the current district be modified to a four year and nine
month term ending January 31, 2014. If the renewed district does not start
Fury 1, 2014, we request the modification he extended accordingly.
7
t600 Newport Center Drive Suite 120 Newport Bench CA 9266o 500 -94 -COAST risitnewportbeach.com
Attachment B
im [ �
I '"ZO11 4 ` NO ihi l
AMENDED
Newport Beach Tourism BID Management District Plan
NEWPORT BEACH TOURISM BID
AIVIENDED MANAGEMENT DISTRICT PLAN
TABLE OF CON'TENT'S
I. INTRODUCTION AND OVERVIEW ...................... ............................... 3
II. WHY_ A TOURISM BID FOR NEWPORT BEACH? ... :.:........................................ 4
III. WHAT IS A TOURISM BUSINESS EVIPROVEMENT DISTRICT? ................... 4
IV. NEWPORT BEACH TOURISM BID BOUNDARY ..... ............................... 5.
V. SERVICE PLAN AND BUDGET ............................ ............................... 5
VI. TOURISM BID GOVERNANCE ............................ ............................... 8
APPENDIX 1 — THE PROPERTY AND BUSINESS IMPROVEMENT'DISTRICT
LAW OF 1994, ......................................... ............................... 10
.APPENDIX 2 — MAP OF HOTELS, AND RESORTS TO BE ASSESSED WITHIN
NEWPORT BEACH TBID .......... :............................................ 26
APPENDIX 3 — NEWPORT BEACH TOURISM BED ADDRESSES AND ASSESSOR
PARCELNUMBERS ................................ ............................... 28
Newport Beach Tourism BID Management DistrictPlan Page 2
INTRODUCTION AND OVERVIEW
Administered by Visit Newport, Beach, Inc. (VNB); the Newport. Beach Tourism :Business Improvement
District ( NBTBID) is a business improvement district formed pursuant to the Property and Business
Improvement District Law of 1994 codified in Streets and Highways Code Section 36600et seq. (the
"1994 Act") which helps fund marketing and sales promotion efforts for Newport Beach tourism
businesses. NBTBID was formed by the City of Newport Beach ( 'City,') in 2009 with an initial five (5)
year term Due to its success in marketing the City's hotels and resorts businesses, additional lodging
business(es) wish to join the NBTBID, which was amended accordingly in 2012. TheFefeFe. th
member lodeinm businesses now wish to renew the NBTBID early.
Location: The.City of Newport Beach.
Services: Marketing and sales promotions to increase tourism and to market Newport Beach as a
tourist, meeting and event destination. These services are designed to benefit the hotels
and resorts that will be assessed within the City and other hotel and resort business that
may join NBTBID in the future.
Budget: The anticipated NBTBID budget for year one of its Four. -Year- and - nine- month�+e (
year operation anticipated a base of approximately $1.7 million.
Cost: Annual assessment rates are 2.06/a of'transient (stays less than 30 days) room rental
revenue on the seven (7) hotels and resorts within the City limits of Newport Beach, and
any hotel and resort business that may join NBTBID in the future. The NBTBID shall
include the Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Newport
Beach Marriott. Bayview, the Newport Beach Marriott Hotel & 'Spa, the Radisson
Newport Beach, the Balboa Bay Club and Resort, the Newport Dunes Waterfront. Resort
and Marina, and any other hotel and resort business that may join NBTBID in the future.
Any, transient occupancy that is exempt from the payment of the City's Transient
Occupancy Tax shall,not be assessed.
Additional hotels and resorts that wish to pay the assessment and receive NBTBID
services in the future may do so upon the approval of the VNB Board, ,support from a
majority of the then existing membership of the NBTBID; and through the execution of
an agreement with the City approved. by City Cbuncil after a noticed public hearing
consistent with Sections 36623 and 36637 of the 1994 Act, as the same may be amended
from time to time.
Formation: NBTBID formation requires submittal of petitions from hotels and resorts representing
more than 50% of the total annual assessment followed by a City Council hearing and an
opportunity for a written protest. The assessed lodging business owners received notice
of the public meeting and the public hearing by ,mail. In the absence of a majority written.
protest, the NBTBID was formed in 2009.
Duration: The NBTBID assessment was implemented beginning May 1,:2009, and will be in effect
for,four years and nine months through January 31. 2014 r 4-yeai -;, After four€rve
years and nine months the petition and City Council hearing process .must be repeated
for the NBTBID to be renewed. Also, once per year there is a thirty (30) day period in
Newport Beach Tourism BID Management District Plan Page 3
which owners paying more than 50% of the assessment may protest and terminate the
district.
II. WHY A'TOURISM BID FOR NEWPORT BEACH?
There are several reasons why the NBTBID was established. The most compelling reasons areas follows:
k. The Need to Increase Occupancy
The formation of the NBTBID is a proactive effort to provide supplemental funding for tourism
promotion and marketing beyond that provided by the City of Newport Beach. The funding ensures
VNB has. adequate financing for the investment required to increase occupancy in, the lodging
industry and be competitive in the conference segment of the tourism market. The investment covers
an expanded marketing and promotional budget needed to reach this market segment.
2. An Opportunity for Increasing City Tim Revenues
As occupancy rates increase, so too will the City's TOT revenue. With stable funding for VNB,
annual occupancy rates should increase significantly as the new marketing and sales promotion
programs are implemented. Greater occupancy will also produce an :increase in sales tax revenues
from tourist spending. This represents a substantial return to the City. The formation of the N93TBID;
in partnership with VNB, creates a stable funding source tied directly to tourism promotion.
3. The Ability to Grow the Economy rviNiout Substantial Development
VNB expects to achieve the above levels of revenue growth without a proportionate increase in the
"footprint' of the tourism industry infrastructure. It is anticipated that little or no development should
be required to raise average occupancy rates. Any development :required to raise occupancy rates
even-more should be relatively minor in scope compared to the existing facilities.
III. WHAT IS A TOURISM BUSINESS IMPROVEMENT DISTRICT?
Tourism business improvement districts ( "TBID") utilize the efficiencies of private sector operation in the
market- based promotion of tourism districts. T BIDS allow lodging and tourism- related business owners
to organize their. efforts to increase tourism. Tourism-related business owners within the district pay
assessments and those funds are used to reimburse the cost of providing services that the businesses
desire, and that benefit the assessed hotels and resorts with the district.
Pursuant to Section 36613 of the 1994 Act, NBTBID activities may include, but are not limited to:
a Promotion of public events which benefit businesses in the District
o Furnishing of music in airy public place within the District
a Promotion of tourism within the District
v Marketing and economic development, including retail retention and recruitment
Newport Beach Tourism BID Management District Plan Page 4
Providing security, sanitation; graffiti removal, street and sidewalk cleaning, and other
municipal services supplemental to those normally provided by the City
Activities which benefit businesses located in the District
In California„ TBIDs are formed pursuant to the 1994 Law. This law allows for the creation. of a special
benefit' assessment district to raise funds within a specific geographic area to support specified activities.
There are. many benefits to Tourism BIDs:
➢ Collected assessments cannot be diverted for other government programs;
➢ Tourism BIDS are customized to fit the needs of each tourism district;
A They allow,for a wide range of services, including those listed above;
9 Tourism BIDs are designed and created by those who will paythe assessment;
A The statue requires petition support from hotels and resorts paying over 60% of the annual
proposed assessments;
They provide astable funding source for tourism promotion.
The 1994 . Act, as amended, is provided in Appendix 1 of this document.
IV. NEWPORT BEACH TOURISM BID BOUNDARY
The NBTBID .includes seven (7) hotels and resorts available for public. occupancy within the boundaries
of the City of Newport Beach, and other hotels and resorts that may join NBTBID in the future. The
hotels and resorts to be ,included at present are the Fairmont Newport Beach,. the Hyatt Regency Newport
Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson
Newport'Beach, the Balboa Bay Club and Resort; and the Newport Dunes Waterfront Resort , and Marina.
The boundary currently includes. seven (7) hotels and resorts. Please see the map included as Appendix 2.
A larger.map is available on request by calling the, VNB at (949) 719 - 6100. A list of properties included
in llre NBTBID; including, addresses and assessor parcel numbers, is included as Appendix 3.
V. SERVICE PLAN AND BUDGET
A. Assessment
The NBTBID includes hotels and resorts of 100 hotel rooms or more, existing or in the future, available
for public occupancy within the boundaries of the City of Newport Beach.' The hotels and resorts
' The term ".hotel room" shall mean any structure, or any portion, of any structure or the air space within
any structure, which is occupied or intended or designed for occupancy by-transients for dwelling, lodging
or sleeping purposes for periods of thirty (30) days or less including a space, campsite or similar facility
which is occupied, or intended or designed for occupancy, by a recreational vehicle, camper, van, trailer,
motor home or similar vehicle used, or intended for use as a dwelling, lodging or for sleeping purposes:
The term hotel room includes any inn, residential dwelling unit, motel, ;group residential or lodging house,
bed and breakfast inn, single room occupancy hotel, hostel, rental unit, public or private residential club,
mobile' home, time -share project; house trailer at a fixed location, or other structure or portion of a
structure.
Newport Beach Tourism BID Management District Plan Page 5
presently included within the NBTBID are the Fairmont Newport Beach, the Hyatt Regency Newport
Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott :Hotel & Spa, the Radisson
Newport Beach, the Balboa Bay Club and Resort, and the Newport Dunes Waterfront Resort and Marina..
Any transient occupancy that is exempt from the payment of the City's Transient Occupancy Tax, shall
not be assessed.
Additional hotel and resort ' facilities that wish to pay the assessment and receive NBTBID services in the
future may do so with the approval of the VNB Board, support from a majority of the then existing
membership of the: NBTBID, and through the'execution of an agreement with the City and approved by
the City Council after a noticed public hearing consistent with Sections 36623 of the 1994 Act, as the
same may be amended from time to time:
The amount of assessment, if passed on to each transient, shall be 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.
B. Determination of Special Benefit
State law provides that, the expenses of the district shall be apportioned in proportion to the benefit
received by assessed businesses.
A special benefit is defined as a particular and district. benefit over and above general benefits conferred
on the public at large. Conversely, a general benefit is a benefit'to businesses in the surrounding
community or a benefit to the public in general, resulting from the improvement, activity or service to be
provided by the, assessment levied. Many general benefits to the .public at large are conveyed by
municipal services, such as fire protection, police services and public transit services. These services. are
targeted. to serve the public at' large .and do not.confer special benefits on particular businesses.
The services identified in this Management. Plan are designed to provide targeted services to the assessed
hotels and resorts. 'These services are tailored. not to serve the general public, but rather to serve the
specific hotels and resorts within the District, e.g., the proposed activities are specifically targeted to
increase room. nights for assessed hotels and resorts within the boundaries of the District, and are
narrowly tailored. For example, only the assessed hotels and resorts will receive sales leads from the sales
efforts paid for with TBID monies. In addition, listing on, websites and collateral materials paid for with
NBTBID monies will only include the. seven (7) assessed hotels and resorts that pay the assessment and
any hotel or resort business that may join NBTBID in the future.. As a result, the activities paid for from
assessment revenue are hotels and resorts services creating special benefit to those businesses. In
addition, these activities are not for the benefit of the general public and do not provide general benefit as
defined above. All ,general_ benefits (if any) to the surrounding community and general public are
intangible and unquantifiable. It is appropriate. that these special business- related benefits be funded
through businesses assessments.
C. Time and Manner for Collecting Assessments
Newport Beach Tourism BID Management District Plan Page 6
The NBTBID assessment will be implemented beginning May 1, 2009; and will continue for four years
and nine months4ve —(5 yea.--s. The City of Newport Beach will be responsible for collecting the
assessment on a monthly basis (including any delinquencies, penalties and interest) from each of the
seven (7) hotels and resorts located in the boundaries of the NBTBID. Assessments shall be collected
monthly and the City shall take all reasonable efforts to collect the assessments from each. lodging
business. The City of Newport . Beach forwards the assessments to VNB which will have the
responsibility to manage the NBTBID programs as provided in the Management District Plan. The City
retains an up to V4 of 1 % of the total collected assessment, whether or not actually collected, to reimburse
the City for administrative costs associated with the establishment of the NBTBID.
D. Penalties and Interest
Any NBTBID member failing to remit the assessment to the City within thirty (30) days of the time
required shall pay an initial mandatory penalty of ten percent (10 %) of the amount of the late assessment
in addition to the assessment.
Any,NBTBID member failing to remit the assessment and the initial penalty within sixty (60) days shall
be liable for a second mandatory penalty of an additional ten percent (10 %).
In addition to die penalties imposed, any NBTBID member who fails to remit the assessment shall pay
mandatory interest on the amount of assessment that is due and owing at the rate of one and one -half
percent (1.5 %) per month for each month or portion of a month that the assessment remains unpaid
exclusive of penalties.
Should a NBTBID member's• assessment become twelve (12) months in arrearsi it shall be sent to
collections. Penalties, interest and the cost of collection shall become part of the assessment required to
be paid.
Late payments, penalties; and interest shall be deposited and used in the same manner as the basic
assessment. "The cost of collection, if any, shall be used to pay the collections agency.
El Service Plan Budget and Programs to be Provided:
Service Plan Budget Summary _ Calendar Years 2009 -2014
The summary of the calendar year 2009 (year one) service plan budget for the NBTBID. is provided
below. The total 4 - e- (3)four year and nine month,year- improvement and service plan budget is projected
to be approximately $1.7 million annually, or $3.0753 million through 2014.
The assessments collected will fund the direct_ sales efforts for group sales to generate room nights at the
seven (7) participating hotels and resorts that may join NBTBID in the future, including:
• Promotion of public events which benefit businesses in the District
• Furnishing of music in any public place within the District
• Promotion of tourism within the District
• Marketing and economic development, including retail retention and recruitment
• Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
municipal services supplemental, to those.normally provided by the City
Newport Beach Tourism BID Management District Plan Page 7
e Activities which benefit businesses located in the District
Additionally, the City shall retain up to Y4 of 1% of the total collected assessment, whether or not actually
collected, to reimburse the City for administrative costs associated with the establishment of the NBTBID.
F. Annual Service Plan:
Annually, a service plan budget is developed and approved by the VNB Board. The budget exhibit below
was for calendar year 2009 (year one). The.ln dget also includes a portion for contingencies and renewal
of the District. Should the VNB Board approve, funds may be appropriated for the renewal effort. If
there,are-fands remaining at the end of the NBTBID term and the assessed hotels and resorts choose to
renew, these remaining funds could be transferred to the renewed. District.. If there are funds remaining at
the end of the District and hotels and resorts choose not to renew, any remaining, funds will be spent
consistent with this Management District Plan.
This service plan will only include hotels and resorts that are participating in the NBTBID.
SALES and
Newport Beach Tourism BID
Annual Budget, Year One
Sales and Marketing programs and activities will be
designed to attract overnight groups. These activities may
include:
a Sales Missions
o Trade Shows
• Sales Calls
• Sales Manager
$1
ADVERTISING AND COMMUNICATION $498,553
Advertising and Communication activities will build
greater awareness of the participating, hotels. These
activities may include:
m Trade Promotion
.o Online Advertising
o Trade Advertising
CTCY OF NEWPORT BEACH ADMINISTRATION FEE $4;250
The City will charge % of 1%
TOTAL TOURISM DISTRICT BUDGET $1,700,000
VI. BID GOVERNANCE
A. Newport Beach Tourism BID Corporation Governance
Newport Beach Tourism BID Management District Plan Page 8
VNB shall serve as the Owners' Association for the NBTBID. The Executive Director or Tourism
Director of VNB is undereontfact with the City to administer and implement the activities specified in
this plan and shall be charged with the day -to -day operations of the Tourism BID.
Newport Beach Tourism BID Management District Plan Page 9
APPENDICES
Newport Beach Tourism BID Management District Plan Page 9
APPEN93IX 1
The Property and Business Improvement District Law of 1994
Newport Beach Tourism BID Management District Plan Page 10
WAIS Document Retrieval
CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36600- 36604
36600. This part. shall be known and,may be cited as the "Property
and Business 'Improvement District Law of 1994:"
3660i. The Legislature finds and declares all of the following:
(a) Businesses located and operating within the business districts
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 the business,districts of
its cities 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 cities to fund
business related, improvements, maintenance, and activities 'through
the levy of assessments upon the businesses or real property that
benefits from those improvements.
(d) Assessments levied for the purpose of providing improvements
and promoting activities that benefit real .property or businesses are
not.taxes for the general benefit of a city, but are assessments: for
-the improvements and activities which confer special benefits upon,
the real property or businesses.for which the improvements and
activities: are provided..
36602. The purpose of this part is to supplement previously enacted
.provisions . of law that authorize: cities to 'levy assessments within a
business improvement. area. 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. Nothing in.this part is.ntended 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 ,pursuan't. 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)).
36,,603.5. Any provision in this part that conflicts with any other
provision of law shall prevail over the other .provision of Saw.
36604. 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:
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'CALIFORNIA. CODES
STREETS AND HIGHWAYS CODE
SECTION 36606 -36616
36606. "Assessment" mean's a levy for the purpose of acquiring.,
constructing, installing, or maintaining improvements and promoting .
activities which will benefit the properties or businesses located
within a..propert,y and business improvement district.
36607. "Business" means all types of businesses . and includes
.financial institutions and professions.
36608. "City" means city, county, city and county; or an agency
or entity created pursuant to Article I (commencing with Section.
6500.) of Chapter5',cf Division 7 o 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" means the city council of a city or the board
of supervisors of acounty, or the - agency, commission, or board
created pursuant to a joint powers agreement and which is a city
within the meaning of this part.
36610. "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 area.
(k) Ramps, sidewalks,. plazas, . and pedestrian malls..
(1) Rehabilitation or removal of existing structures.
36611_ "Property and business improvement district," or "district,"
means a property and business improvement.district . established
pursuant to this part.
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36612. nProperty" means -real property situated within .a district.
36613. "Activities" means, but is not limited to, all of the
following:
(a) Promotion of public events which benefit businesses or real
property in the district.
(b) Furnishing of music in any public place within the district.
(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) Activities which benefit businesses and real .property located
in the district.
36614. "Management district plan" or "plan" means a, proposal as
defined in Section 36622.
36614.5. "Owners' association" means a private nonprofit entity
that is under contract with a city to administer or implement.
activities and improvements 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 section, an owners' association
shall comply with the Ralph M. Brown Act (Chapter 9 ('commencing with
Section.54950) of Pant 1 of Division 2 of Title 5-of the Government
Code), at all times when matters within the. - subject matter ofthe,
district are heard, discussed, or deliberated; and with the
California Public Records Act (Chapter 3,5 (commencing with Section.
6250) of Division 7 of Title 1 of the Government Code), for all
documents relating to activities of the district.
36615. "Property :owner ",means any person shown as the owner
on the last equalized assessment roll or otherwise known to be
owner of land by the city council. "Business owners means any
recognized by the city as the owner' of the business. "Owner"
either a business .owner or a property owner. The city council
obligation to obtain other information as to, the. ownership of
businesses, and.its determination of ownership shall be final
conclusive for the purposes of this :part. Wherever this part r
the signature of the property owner, . the signature of the auth
agent of the property owner shall be sufficient. Wherever this
requires the signature of the business owner, thesignature of
authorized. agent of the business owner shall be sufficient.
of land
the
person
means
has no
land or
and
equires
oriaed
part
the
36616. "Tenant" means an occupant pursuant to a lease . of commercial
space or a dwelling unit, other than an owner.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE'
'SECTION 36617
36617. 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 (commencingwith Section. 36500) of this division) is
valid and .effective and is unaffected by this part.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 3600 -36630
36620,.. :A property and business improvement district may be
established as provided in this chapter.
36620..5. A, county may not form a district within the territorial
jurisdiction of a ci -ty without the consent of the city council of
that city. A city.:may.not form adistrict 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- jurisdictionof another city without the. consent of the
city council of the other city.
36621.. (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 •toform a district.by the
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 to be levied, shall
mot 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.
(s) The resolution . of intention described.. in subdivision (a) shall
contain all of the following:
(1) A brief description of the proposed activities and
improvements, 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.. 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 .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. The management. district plan shall contain all of the
following:
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(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 in 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.:_
(bi The name of the proposed district.
(n) 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 lands and businesses.
included. 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 boundaries 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 and activities proposed for each year of
operation of the district and the maximum cost. thereof.
(e) The total annual amount proposed to be expended for
improvements, maintenance and operations, and "debt service in each
year of operation of the district.
(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 his or her property or
busyness. 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 1'0 years.
Notwithstanding these limitations, a district created pursuant to
this part to .finance: capitalimprovements 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) A list of, the properties or businesses to be assessed,
including the assessor's parcel numbers for properties to be
assessed, and 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, including operation and
.maintenance.. The plan may provide that all or any class,or category
of real property which is exempt by law from real property taxation
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may nevertheless be included . within the boundaries of the district
but shall not.be subject to assessment on .real property.
(1) Any other item or matter required to be incorporated therein
by the city 'council.
36623. (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 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
person 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 amajority protest. If
written protests are .received from the owners or authorized
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 proposed 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.
36624. 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
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 . or activities. Any
modifications, revisions', reductions, or changes to the proposed
assessment district shall be reflected in the notice and map recorded
pursuant to Section 36627.
36625. (a) If the city council, following the public hearing,
decides to establish the proposed property and business . improvement
district, the city council shall adopt a resolution of formation that
shall contain all of the following:
(1) Abrief description of the proposed activities and
improvements, the amount of the proposed assessment, a statement as
to whether the assessment will be levied on property, businesses., or
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both within the district, a statement about whether bonds will be
issued, and description of the exterior boundaries of the proposed
district.. 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 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) 4 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 and activities to be
provided 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 toprovide. improvements 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.
(7') 'A finding that the property or businesses within the area of
the property and business improvement district will be benefited by
the improvements and activities funded by the assessments proposed to
be levied.
(b) The adoption of the resolution of formation and, if required, .
recordation of the notice and map pursuant to Section 36,627 shall
constitute the levy of an assessment in each of the fiscal years
referred to in the management district plan.
36626. If the city council, following the public hearing, desires
to establish the proposed property and business improvement district',
and the city council has not made changes pursuant to Section 36624,,
or has made changes that do not substantially change the proposed
assessment,, the city council shall adopt a resolution .establishing
the district. The resolution shall contain all of the information
specified. in paragraphs (.1) to ('8),' inclusive, of subdivision (b.) of
Section 36625, but need not contain information about the preliminary
.resolution if none has been adopted.
36627. .Following adoption -of the .resolution establishing district
assessments on properties pursuant to Section 36625 or -Section 36626,
the clerk of the city shall record anotice 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. 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
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benefit that each will derive from the improvements or activities to
be provided . within the district and may impose . adifferent assessment
or rate of assessment on each category of business, or on each
category of business within each zone.
36628.5. 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 and activities.
36629. All provisions of this part applicable to the establishment,
modification, or disestablshment o'f'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. parking and business improvement. area.
36630. 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. a. new district
established pursuant to this part.
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CALIFORNIA CODES
STREET'S AND HIGHWAYS. CODE
'SECTION 36631 -35637
36631. 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
shall,:be charged interest and penalties.
36632. (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. The-validity of an assessment levied under this part shall
.not' be contested in any action or. proceeding unless the action or
proceeding is commenced.within 30 days after the resolution levying
the assessment is adopted pursuant to Section 36626.. Any appeal from
a final judgment in an action or proceeding shall be perfected within
30 days after the entry of judgment.
36634. 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. 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. (a). Upon the written request of the owners' association, the
city council may modify the management district plan after
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conducting one public hearing on the proposed modifications. The city
council may modify the improvements and activities to be. funded with
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 36623i Notice of all other public meetings
and 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 meeting.
(2) A complete copy of the resolution of intention shall.be mailed
by first class mail, at- least•10 days . before the public meeting, to
each business owner or property owner affected by the proposed
modification.
(b) The city council shall adopt a resolution,of intention which o
states the proposed modification prior t the public hearing required
by this section. The public hearing shall be field not more than 90
days after the adoption of the resolution of intention.
36637. 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.
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CALIFORNIA CODES
'STREETS AND HIGHWAYS CODE
SECTION 36640.
36640. (a) The city council may, by resolution, determine and
declare that bonds shall be issued to :finance the.estimated cost of
some or^allof 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 . council 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..
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CALIFORNIA CODES
STREETS AND HIGHWAYS•CODE
'SECTION 36650 -36651
36650. (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 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-4n any benefit zones or
classification of property or businesses within.the district..
- (2) The .improvements and activities to be provided for that fiscal
year.
(3.) An estimate-of the cost of providing the improvements and the
.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 amount of any surplus or deficit revenues to be carried
over from a previous fiscal year.
(6). The 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 assessments,, including any commitment to pay principal and
interest on any bonds issued on behalf'of the district.
'36651. The management district plan-may, but is not •required to,
state that an owners' association will provide the improvements or
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.
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CALIFORNIA. CODES
STREETS AND HIGHWAYS CODE
SECTION 36,660
36660. (a) Any district previously established whose term has
expired, 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 priordistrict, 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 renewed
district be the same as the original or prior district.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36670 -36671
36670. (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 represent "atives of businesses in the
area 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 council shall notice a hearing on
disestablishment.
(b) The city council shall adopt aresolution of intention to
disestablish the district prior to the public hearing required by
this section. The .resolution shall state the reason for the
disestablishment„ shal-1 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 mail
to the ;property owner of each parcel or tothe 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. (.a) Upon the disestablishment of a district, any remaining
.revenues„ after all outstanding debts are paid, derived from the-levy
of assessments, of 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 of 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'. 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.
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APPENDIX 2
Map of Hotels and Resorts to be Assess Within Newport Beach BRED
Newport Beach Tourism BID Management District Plan Page 26
r
-1
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2
Newport O j,
Beach O /
- Tourism BIDMembers
1) Fevmont Newport Beads
4500 MacArthur Boulevard. Newport Beach, CA 92660
2) Hyaft Regency Newport Beach
1107 Jamboree Road. Newport Beach, CA 92660
3) Newport Beach Marriott Bayyre
500 Bayview Circle. Newport Beach, CA 92660
4) Newporl Beach Marrott Holel 6 Spa
900 Newport Center Drive. Newport Beach CA 92(M
5) Radsson Newport Beach
4545 MacAdhur Boulevard. Newport Beach, CA 92660
6) Balboa Day Club and Resort
1221 Wast Coast Highway, Newport Beach. CA 92663
V�� 6oaosed Addition
7) Newport Drmes Waterfront Resort 6 Marina
1131 Back Bay Drive. Newport Beach, Ca. 92660
04100@012 TourmmBID A.mxd
N
1
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0 OTS ]
Miles
Carona
Del Mar
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Newport �\
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APPENiDIX 3
Newport Beach Tourism SID Addresses & Assessor Parcel Numbers
Newport Beach Tourism BID Management District "Plan Page 28
Newport Beach Tourism Improvement District
Assessed Properties
Fairmont Newport Beach. 4500 MacArthur.Boulevard Newport Beach, CA 92660
APN: 445422 -11
Hyatt'Regency Newport Beach
APM 440- 132-41
Newport.Beach Maniote Bayview
APN: 442- 282 -01
442- 282 -02
442 - 282 -03
Newport Beach Marriott Hotel & Spa,
APN: 442 - 011 -68
442` - 01.1 -69
Radisson Newport Beach
APN: 427- 174;04
Balboa Bay Club and Resort
APN: 049- 161 -03
049-161 -05
1107 Jamboree Road: Newport Beach .CA 92660
500 Bayview Circle Newport Beach, CA 92660
900 Newport Center Drive Newport Beach, CA 92660
4545 MacArthur Boulevard Newport, Beach ,, CA.92660
1221 West Coast Highway Newport: Beach, CA 92663
Nawport Dunes Waterfront Resort & Maruia 113'1 Back Bay Drive Newport Beach CA 92660,
APN` 440432 -42.
440 -13243
440- 132 -59
APN —Assessor Parcel Number
Attachment C
�, b' ' i" �;�, �•' i i.; I •, � "I I ��� d D" 1 � '� I li; ( � lh� C � ,
AMENDED
Newport Beach Tourism BID Management District Plan
NEWPORT BEACH TOURISM BH)
AME, NDED MANAGEMENT DISTRICT PLAN
TABLE OF CONTENTS
I. INTRODUCTION AND OVERVIEW ...................... ............................... 3
H. WHY. A TOURISM BID FOR NEWPORT BEACH?
U
III. WI-IAT IS A TOURISM BUSINESS IMPROVEMENT DISTRICT ? ................... 4
IV. NEWPORT BEACH TOURISM BID BOUNDARY ..... ............................... 5
V. SERVICE PLAN AND BUDGET ........................................................... 5
V.I. TOURISM BID GOVERNANCE ............................ ............................... 8
APPENDIX 1 THE PROPERTY AND BUSINESS EVIPROVEMENT DISTRICT
LAWOF 1994 ......................................... ............................... 10
APPENDIX 2 — MAP OF HOTELS AND RESORTS TO BE ASSESSED WITHIN
NEWPORT BEACH TBID ........................ ............................... 26
APPENDIX — NEWPORT BEACH TOURISM BID ADDRESSES AND ASSESSOR
PARCEL NUMBERS ................._............... ............................... 28
Newport Beach Tourism BID Management District Plan Page 2
0. ]fN'lTRODI unON AND OVERVIEW
Administered. by 'Visit Newport Beach, Inc..(VNB), the Newport Beach Tourism Business TFnprovement
District ( NBTBID) is a business improvement district formed pursuant W the Property and Business
Improvement District Law of 1994 codified in Streets and .Highways Code Section 36600et seq. (the
111994 Act ") which ;helps fund marketing and sales promotion efforts for Newport Beach tourism
businesses. NBTBID was formed by the City of Newport Beach (`'City') in 2009 with an initial five (5).
year term. Due to its success in marketing the City's hotels and resorts businesses, additional lodging
business(es) wish to join the NBTBID, which was amended accordingly:in 2012. The metnber lodging
businesses now wish to renew the NBTBID early:
Location: The City of Newport Beach
Services: Marketing and sales promotions to increase tourism and to market Newport Beach as .a
tourist, meeting and event destination. These services are designed to benefit the hotels
and resorts that willbe assessed within the City and other hotel and resort business that
may, join NBTBID in the future.
Budget: The anticipated NBTBID budget for year one of its four -year- and - nine -month operation
anticipated a -base of approximately $1.7 million.
Cost: Annual assessment rates are 2.0% of transient (stays less than 30 days) room rental
revenue on the,seven (7) hotels and resorts within the City limits of Newport Beach, and
any hotel and resort business that may join NBTBID in. the, future. The NBTBID shall
include the Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Newport
Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson
Newport Beach, the Balboa Bay Club and Resort, the Newport Dunes Waterfront Resort ,
and Marina, and any other,hotel and resort business that may join NBTBID' in the future.
Any transient occupancy that is exempt from the payment of the City's Transient
Occupancy Tax shall .not be assessed.
Additional hotels and resorts that wish to pay the assessment and receive NBTBID
services in the future may do so upon the approval of the VNB Board, support from a
majority of the then existing membership of the NBTBID, and through the execution of
an agreement with the City approved by City Council after a noticed public hearing
consistent with Sections 36623 and 36637 of the 1994 Act; as the same may'be amended
from time to time.
Formation: NBTBID formation requires submittal of petitions from hotels and resorts representing
more than 50% of the total annual assessment followed by a City Council hearing and an
opporhuiity for a written protest. The assessed lodging business owners received notice
of the public meeting and the public hearing by mail. In the absence of a majority written
protest, the NBTBID was formed in 2009.
Duration:• The NBTBID assessment was implemented beginning May 1, 2009, and will be in effect
for four years and nine months through January 31, 2014. After four years and nine
months, the petition and City Council hearing process must be repeated for the NBTBID
to be renewed. Also, once per year there is a thirty (30) day period in which owners
paying more than 50116 of the: assessment may protest and terminate the district..
NewportBeach Tourism BID Management District Plan Page 3
II. WHY A TOURISM RIID FOR NEWPORT REACH?
There are several reasons why the NBTBID was established. The most compelling reasons are as follows:
I. The Need to Increase Occupancy
The formation, of the NBTBID is a proactive effort to provide supplemental funding for tourism
promotion and marketing beyond that provided by the City of Newport Beach. The funding ensures
VNB has adequate financing for the investment required to increase occupancy in the lodging
industry and be competitive in the conference segment of the tourism market. The investment covers
an expanded marketing and promotional budget needed to reach this market segment.
Z An Opportunity for Increasing City Tax Revenues
As occupancy rates increase, so too will the City's TOT revenue. With stable funding for VNB,.
annual occupancy rates should increase significantly as the new marketing and sales promotion
programs are implemented. Greater occupancy will also produce an increase in sales tax revenues
from tourist spending. This represents a substantial return to the City.. The formation of the NBTBID,
in partnership with VNB, creates a stable funding source tied•directly to tourism promotion..
3. The Ability to Grow the Economy svilliout Sgbstantial Development
VNB expects to achieve ,the above levels of revenue growth without a proportionate increase in the
"footprint" of the tourism industry infrastructure. It is anticipated that little >or no development should
be required to raise average occupancy rates. Any development required to raise occupancy rates
even more should be relatively minor in scope compared to the existing facilities.
III. WHAT IS A TOURISM_ BUSINESS IMPROVEMENT DISTRICT?
Tourism Business improvement districts ( "TBID") utilize the efficiencies of private sector operation in the
market -based promotion of tourism districts. T BIDs allow lodging and tourism related business owner's
to organize their efforts to increase 'tourism. Tourism- related business owners within the district pay
assessments and those funds are used to reimburse the cost of providing services that the businesses
desire and that benefit the assessed hotels and resorts with the district,
Pursuant to Section 36613 of the 1994 Act, NBTBID activities may include,, but are not limited lo:
• Promotion of public events which benefit businesses in the District
• Furnishing of music in. any public place within the District
• Promotion of tourism within the District
• Marketing and economic development, including retail retention and recruitment
• Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
municipal services supplemental to those normally provided by the City
• Activities which benefit businesses located in the District
Newport Beach Tourism BID Management District Plan Page 4
In California, TBIDs are formed pursuant to the 1994 haw. 'This law allows for the creation. of a special
benefit assessment district to raise funds within a specific geographic area to support specified activities.
There are many benefits to Tourism BIDs:
Collected assessments cannot be diverted for other government programs;
➢ Tourism BIDS are customized to fit the needs of each, tourism district;
They allow for a wide range of services, including those listed above;
S Tourism BIDS are designed and created by those who ivillpay'the assessment;
9 The statue requires petition support from hotels and resorts paying over 50% of the annual
proposed assessments;
>, They provide a stable finding source for tourism promotion.
The 1994 Act, as amended, is provided in Appendix 1 of this document.
IV. NEWPORT BEACH TOURISM BID BOUNDARY
The NBTBID includes seven (7) hotels and resorts available for public occupancy within the boundaries
of the City of Newport Beach, and other hotel's and resorts that may join NBTBID in the future. The
hotels and resorts to be included at present are the Fairmont Newport, Beach; the Hyatt Regency Newport
Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Radisson
Newport Beach, the Balboa Bay Club and Resort, and the Newport Dunes Waterfront Resort and Marina.
The boundary currently includes seven (7) hotels and resorts. Please see the map included as Appendix I
A larger map is available on request by calling the VNB at (949) 719 -6100; A list of properties included
in the NBTBID, including addresses and assessor parcel numbers, is included as Appendig 3.
V. SERVICE PLAN AND BUDGET
A. Assessment
The NBTBID includes hotels and resorts of 100 hotel rooms or more, existing or in the future, available
for public occupancy within the boundaries of the City of Newport- Beach.' The hotels and resorts
presently included within the NBTBID are the Fairmont Newport Beach, the Hyatt Regency Newport
' The term "hotel room" shall mean any structure, or any portion of any structure or the air space within
any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging
or sleeping purposes for periods of thirty (30) days or less including a space, campsite or similar facility
which is occupied, or intended or designed for occupancy, by a recreational vehicle, camper, van, trailer,
motor home or similar vehicle used, or intended for use as a dwelling, lodging ,or for sleeping purposes.
The term hotel room includes any inn, residential dwelling unit, motel, group residential or lodging house,
bed and breakfast inn, single room occupancy hotel, hostel, rental unit, public or private residential club,
mobile home, time -share project, house trailer at a fixed location, or other structure or portion of a
structure.
Newport Beach Tourism BID Management District Plan Page 5
Beacly the Newport Beach Marriott Bayview, the Nevport Beach Marriott Hotel. &: Spa, the Radisson
Newport Beach, the Balboa Bay Club, and Resort., and the Newport Dunes Waterfront Resort and Marina.
Any transient occupancy that is exempt from the payment of the City's Transient Occupancy Tax shall .
not be assessed.
Additional hotel and resort facilities that wish to pay the assessment and receive NBTBID services in the
future may do so with the approval. of the VNB Board, support from a majority of the then existing
membership of the NBTBID, and through the Execution of an agreement with the City and approved by
the City Council after a noticed public hearing consistent with Sections 36623 of the 1994 Act, as the
same may be amended from time to time.
The amount of assessment, if passed on, to each transient; shall be 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.
B. Determination of Special Benefit
State law- provides that the expenses of the district shall be apportioned in proportion, to the benefit
.received by assessed businesses.
A special benefit is defined as a particular and district benefit. over and above general benefits conferred
on the public at large. Conversely; a general benefit is a benefit to businesses in the surrounding
community or a benefit to the public in general resulting from the improvement, activity or service to be
provided by the assessment levied. Many general benefits to the public at large are conveyed by
municipal services, such as fire protection, police services and public transit services. These services are
targeted to serve the public at large and do not confer special benefits on particular businesses.
The services identified in this Management Plan are designed to provide targeted services to the assessed
hotels and resorts. These services are tailored not to serve the general public, but rather to serve the
specific hotels and resorts within the District, e:g., the proposed activities are specifically targeted to
increase room nights for assessed Hotels and resorts within the boundaries of the District, and are
narrowly tailored. For example, only the assessed hotels and resorts will receive sales leads from the sales
efforts paid for with TBID monies. In addition, listing on websites and collateral materials paid for with
NBTBID monies will only include the seven (7) assessed hotels and resorts that pay the assessment and
any hotel or resort' business that may join NBTBID in the future.. Asa result, the activities paid for from
assessment revenue are hotels and resorts services creating special benefit to those businesses. In
addition, these activities are not for the benefit of the general public and do not provide general benefit as
defined above. All general benefits (if any) to the surrounding community and general public are
intangible and unquantifiable. It is appropriate that these special business- related benefits be funded
through businesses assessments.
C. Time and Manner for Collecting Assessments
The NBTBID assessment will be implemented beginning May 1, 2009, and will continue for four years
and nine months, The City of Newport Beach will be responsible for collecting the assessment on a
monthly basis (including any delinquencies, penalties and interest) from each of the seven (7) hotels and
resorts located in the boundaries of the NBTBID. Assessments shall be: collected monthly and the City
Newport Beach Tourism BID Management District Plan Page 6
shall take all reasonable efforts to collect the assessments from each lodging business. The City of
Newport Beach forwards the assessments to VNB which. will have; the responsibility to manage the
NBTBID programs as provided in the Management District Plan. The City retains an up to '/< of 1% of
the total collected assessment, whether or. not actually collected, to reimburse the City for administrative
costs associated with the establishment of the NBTBID.
D. Penalties and Interest
Any NBTBID member failing to remit the assessment to the City within thirty (30) days of the time
required shall pay an initial mandatory penalty often percent (10 %) of the amount of the late assessment
in addition'to the assessment.
Any NBTBID member failing to remit the assessment and the initial penalty within sixty (60) days shall
be liable for a second mandatory penalty ofan additional ten percent (10 %u),
In addition to the penalties imposed, any NBTBID member who fails to remit the assessment shall pay
mandatory interest on the amount of assessment that is due and owing at the -rate of one and one -half
percent (1.5 %) per month for each month or portion of a month that the assessment remains "unpaid
exclusive of penalties.
Should a NBTBID member's assessment become 'twelve (12) months in arrears, it shall be sent to
collections. Penalties, interest and the cost of collection shall become part of the assessment required to
be paid.
Late payments, penalties, and interest shall be deposited and used in the same .manner as the basic
assessment. 'The cost of collection, if any,, shall be used to pay the collections agency.
E. Service Plan Budget and Programs to be Provided:
Service-Plan Budget Summary — Calendar `Years 2009 -2014
The summary of the calendar year 2009 (year one) service plan budget for the NBTBID, is provided
below. The total four year and nine month improvement and service Man budget is projected' to be
approximately $1.7 million annually, or $8.075 million through 2014.
The assessments collected will fund the direct sales efforts .for group sales to generate room nights at the
seven (7) participating hotels and resorts that may joinNBTBID in the future, including:
• Promotion of public events which benefit businesses in the District
• Furnishing of music, in any public place within the District
• Promotion of tourism within the District
• Marketing and economic development, including retail retention and recruitment
• Providing security, sanitation, graffiti removal, street and 'sidewalk cleaning, and other
municipal services supplemental to those normally provided by the City
• Activities which benefit businesses located in the District
Additionally, the City.shall retain up to % of'l_ %a of the total collected assessment, whether or not actually
collected, to reimburse the City for administrative costs associated with the establishment of the NBTBID.
Newport Beach Tourism BID Management District Plan Page ;7
F. Annual Service Plana
.Annually, a service plan budget is developed and approved by the VNB Board. The budget exhibit below
was for calendar year 2009 (year one). The budget also includes a portion for contingencies' and renewal
of the District. Should the VNB Board approve, funds may be appropriated for the renewal effort. If
there are funds remaining at the end of the NBTBID term and the assessed hotels and resorts choose to
.renew, these remaining funds could be transferred to the renewed District. If there are funds remaining at
the end of the :District and hotels and resorts choose not to renew, any remaining funds will be spent
consistent with this Management District Plan.
This service plan will only include hotels and resorts that are participating in the NBTBID..
SALES and
NevwportBeach Tourism BID
Annual Budget, Year One
Sales and Marketing programs and activities will be
designed to attract overnight groups. These activities may
include:
• Sales Missions
• Trade Shows
• Sales Calls
• Sales Manager
1,197
ADVERTISING AND COMMUNICATION $495,583
Advertising and Communication activities will build
greater awareness of the participating hotels. These
activities may include:
• Trade Promotion
• Online Advertising
• Trade Advertising
CITY OF NEWPORT BEACH ADMINISTRATION FEE $4,250
The.City will charge V4 of 1 %0
TOTAL TOURISM DISTRICT BUDGET $1,700,000
VI. BID GOVERNANCE
A. Newport Beach Tourism BID Corporation Governance
VNB shall serve as the Owners' Association for the NBTBID. The Executive Director or Tourism
Director of VNB is under contract with the City to administer and implement the activities specified in
this plan and shall be charged with the day -to -day operations of the Tourism BID.
Newport Beach Tourism 131D Management District Plan Page 8
APPENDICES
Newport Beach Tourism BID Management District Plan Page 9
APPENDIX 1
The Property and Business Improvement District Law of 1994
Newport Beach Tourism BID Management District Plan Page 10
WAIS Document Retrieval
.CALIFORNIA CODES.
STREETS AND HIGMMYS .CODE
SECTION 36600 -36604
36600_ This part shall be known. and may be cited as the "Property
and Business Improvement District Law. of 1994."
36601.., The Legislature finds and declares all of the .following:
(a) Businesses located and operating within thebusiness - districts
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 the business districts of
its cities 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 cities to fund
business .related improvements, maintenance, and activities' through
the levy of assessments upon the businesses or real property_ that
benefits from .those improvements.
(d) Assessments levied for the purpose of providing improvements
and promoting activities that benefit real .property or businesses are
not taxes for. the - .general benefit of a city, but are assessments for
the improvements and activities which confer special benefits upon
the real property or businesses for which the improvements and
activities are provided.
36602. The purpose of this part is to supplement previously enacted
provisions of law that authorize cities to levy assessments within a
business improvement area. 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. 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 fromthose
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_ Any provision in this part that conflicts with anyother
-
provision of law shall prevail over the other provision of law.
36604: 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.
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CALIFORNIA CODES
'STREETS AND HIGHWAYS CODE
SECTION, 3660.6 -36616
36606. "Assessment" means a levy for the purpose of acquiring,
constructing, installing or maintaining improvements and promoting
activities which will benefit the properties or businesses located .
within a- .property and business improvement 'district.
36607. "Business means all types of businesses and.includes
financial institutions and professions.
36608. "City" means a city, county, city and county, or an agency
or entity .created pursuant to Article 1. (commencing with Section
5500) of Chapter 5 of Division 7 of Title l of the Government Code,
the public member agencies of which includes only cities, counties,
or a�6ity and county, or the State of California.
36509: "City council" means the city council of a city or the board
of supervisors,of a county, or the agency, commission, on board
created-pursuant to a joint powers agreement and which is a city
within the meaning . of this part.
36610. "Improvement" means the acquisition, construction,
installation, . or maintenance of any tangible property with an
est'imateduseful 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 area.
(k) Ramps, sidewalks, plazas, and.pedestrian malls..,
(1) Rehabilitation or removal.of existing structures.
3'6611. "Property and business improve ment district," or "district,"
means aproperty and. business improvement district established
pursuant to this part.
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36612. "Property" means real property situated within a district.
36613. "Activities" means, but is not Limited to, all of the
- following.:
(a) Promotion of public events which benefit businesses or real
property in the district.
(b) Furnishing of music in any public place within the district.
(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) Activities which benefit businesses and real property located .
in the district.
36619. "Management district plan" or `plan" means a'proposal as
defined in Section 36622. -
36619.5. "Oc ers' .association" means a private nonprofit entity
that is under contract with a city to administer or implement
activities and improvements 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 public entity for any purpose, nor
may its board members or staff be considered to be public officials
for any purpose. Notwithstanding this section, 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, discussed, or deliberated, and with the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code), for all
documents relating to activities of the '.district.
36615. "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 authori -zed .
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 business owner shall. be sufficient.
36616. "Tenant" means an occupant pursuant to a .lease of commercial
space or a dwelling unit, other than an owner.
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
'SECTION 36617
36617. 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 (commencing with Section. 36500) of this division) is
valid and effective and is unaffected by this part.
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CALIFORNIA. CODES
STREETS AND HIGHWAYS CODE
SECTION 36620 -36630
36620. A property and business improvement district may be
established as provided . in this chapter.
36620.5.. 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 d strict.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. (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 forma district by the
adoption of a resolution expressing its intention to form adistrict.
The amount of assessment attributable to ,property or abusiness
owned by the same property or business owner that is in excess of 40
percent, of the amount.of. all assessments proposed to 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 activities and
improvements, 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. 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 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. The management district plan shall contain all of the
following.:
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(.a) I`f the assessment will be levied on property, amap 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 wit hin
the district boundaries. If the assessment will be levied on property
and businesses, a map of the district . in 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 tones, proposed for establishment or extension
in a manner sufficient to identify the affected lands and businesses
,included.. 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 boundaries 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 and activities proposed for each year of
operation of the district and the maximum .cost thereof.
(e) The total annual amount , proposed to be expended for
improvements, maintenance and operations, and debt service in each
year of operation of the district..
('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'his or her 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 is 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 pursuant to
.this part to finance capital improvements with bonds may levy
assessments until the maximum.maturityof 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) A list of the properties or businesses to be assessed,
including the assessor's parcel numbers for properties to be
assessed, and 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, including operation and
maintenance. The plan may provide that all or any class.or category
of real property which is exempt by law from real property taxation
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May nevertheless be included within the boundaries of the district
but shall not be subject to assessment on real property.
(1) Any other item or matter required to be incorporated therein
by the .city council..,.
36623. (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 mailed to the owners of the businesses proposed to be
assessed. Aprotest 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 maybe 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
person 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.thatthe.
- person subscribing is the owner of the business or the authorized
representative. Awritten 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 authorized
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 seduce the protests to less than
50 percent, no further proceedings to levy the proposed 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.
36624. 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
and activities to be funded with the revenues from the assessments..
.Proposedassessments 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 or activities. Any
modifications, revisions, reductions, or changes to the proposed.
assessment district shall be reflected in the notice and map recorded.
pursuant to Section 36627..
36625. (a) If the city council, following the :public hearing,
decides to establish the proposed property and business improvement
district, the city 'council shall .adopt a resolution of formation that
shall contain all of the following:
(1) A brief description of the proposed activities and
improvements., the amount of the proposed assessment, a statement as
to whether the assessment will be levied on property, businesses, or
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both within the district, a statement about whether bonds will be
issued, and a. description of the exterior boundaries of the proposed
district. 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 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, on 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 and activities to be
provided: 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 .oractivities
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.
(7) A finding that the property or businesses within the area of
the property and business improvement district will be benefited by
the improvements and activities funded by the assessments proposed to
be levied.
('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.
36626. 'If the city council, following the public hearing, desires
to establish the proposed.. property and business improvement district,
and the city council has not made changes pursuant to Section 36624,
or has made changes that do not substantially change the proposed
assessment, the city council shall adopt a resolution establishing
the district:. The resolution shall contain all of the information
specified in paragraphs (1,) to (8)y' inclusive, of subdivision (b)-of
Section 36625, but need not contain information about the preliminary
resolution if none has been
36627. Following adoption-of the resolution . establishing district
assessments on properties pursuant. to Section 36625 or 'Section 36626,
the clerk of the city 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. 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
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benefit.that each will derive from the
be provided within they district and may
,or rate of assessment on each category
category of business within each zone.
improvements or activities to
impose a different assessment
of .business, or on each
36628.5. 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 and activities.
36 629. All provisions of this part applicable to the establishment,
modification, or disestabli^shment..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 parking and business improvement area..
36630. If a property and business improvement district expires due
to the time limit set pursuant to subdivision (h). of Section 36622,
new management district plan may be created and .a new .district
established pursuant to this part.
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CALIFORNIA CODES
STREETS AND HIGHWAYS .CODE
'SECTION 36631 - .36637
36631: 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.
shall be charged interest and penalties.
36632. (a) The assessments levied on real property pursuant to this
part shall be levied onthe.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, of 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.. The validity of an assessment levied under this .part shall
not be contested in any action or proceeding unless the action or
proceeding is commenced within 30 days after the resolution levying
,the assessment'is adopted pursuant, to +Section 36626. Any appeal from
a final judgment in.- anaction or proceeding shall be perfected within
30 days after the entry of judgment.
.36634. 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. 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. (a) Upon the written request of the owners' association, the
city council may modify the management district. plan ,after.
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conducting one. - public hearing on the proposed modifications. The city
council may modify the improvements and activities to be funded with
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 anew or. increased assessment, the city council
shall comply with Section 36623. Notice of all other public meetings,
and 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 a in - the : city once at least seven days before
the public meeting_
(2) A complete copy of the resolution of intention shall be.mailed
by first class mail,.,atz least l0 days before the public meeting, to
each business owner -or property owner affected by the proposed
modification.
(b) The city councilshall -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. 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.
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CALIFORNIA .CODES
'STREETS AND HIGHWAYS CODE
SECT.ION.36640
36640. (,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. 3.6625, 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 council 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,
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
:SECTION 36650- 36651
36650. (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 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 and activities to be provided for that. fiscal
year.
(3) An estimate of the cost of providing the improvements• and the
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 amount of any surplus or deficit revenues to be 'carried
over from a previous fiscal. year.
(6): The 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 assessments., including any commitment to pay principal - and
interest <on any bonds issued on behalf of the .district.
36651. The management district plan may, but is not required to,.
state that an owners' association will provide the improvements or
activities described.in the management district plan. If the
management district ,plan :designates anowners' association, the pity
shall contract with the designated nonprofit :corporation to provide
services.
r
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CALIFORNIA CODES
STREETS AND HIGHWAYS CODE
SECTION 36660.
36660. (a) Any district previously established whose term has
expired, 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 ofa. renewed
district be the same as the original or prior district.
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:CALIFORNIA CODES.
STREETS AND HIGHWAYS CODE
SECTION 36670 -36671
36670. (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
area 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 council shall notice a hearing on
disestablishment.
(b) The city council shall adopt aresolution 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 mail
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. (a) Upon the disestablishment of a district, any remaining
revenues, after all 'outs - tanding 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 fund's, 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. 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 ofany refund..
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APPENDIX 2
Map of Hotels and Resorts to be Assess Within Newport Beach 'TBI D
Newport Beach Tourism BID Management District Plan Page 26
/1-40 �.
Costa
Mesa
Ik
I
Newport
Beach
Newport �\
Coast rA,�
1 �
- TouNam BID Member,
1) Famora Newport Beach
4500 MacArthur Boulevard, Newport Beach, CA 92660
2) Hyatt Regency Newport Beach
1107 Jambon a Road, Newport Beech, CA 92660
3) Newport Beach Merton Bayvrew
500 Bayview Circle, Newport Beach, CA92660
4) Newport Beach Marriott Hotel B Spa
900 Newport Center Drive, Newport Beach, CA 92660
5) Radiator, Newport Beech
4545 MacArttar Boulevard Newport Beech, CA 92650
6) Balboa Bey Club and Rests
1221 Wast Coast Highway Newport Saatchi, CA 92663
W/O
7) Newport Dunes Wmerfronl Rests H Marina
1131 Back Bay Drive, Newport Beech, Cu. 92660
0 410 412 01 2 TnurismBID_A.mxd
Corona
Del Mar
J�
r
N i
)S /
S \/!
0 OYS 1 /
Miles /
APPENDIX 3.
]Newport Beach Tourism ]BID Addresses & Assessor ]Parcel Numbers
Newport Beach Tourism BID Management District Plan Page 28
Newport Beach Tourism Improvement District.
Assessed Properties
Fairmont Newport Beach.
APN: 445 - 122 -11
Hyatt Regency Newport Beach
APN; 440 - 132 -41
Newport Beach Marriott.Bayview
APN: 442 - 282 -01.
442 - 252 -02
442 - 282 -03
Newport Beach Marriott Hotel & Spa
APN: 442- 011 -68
442 - 011 -69
Radisson Newpon Beach
.APN: 427-174 -04
Balboa Bay Club.and.`Resott
APN; 049461-03
049- 161-05
4500 MacArthur Boulevard Newport Beach CA'92660
1 107 Jamboree Road Newport Beach, CA 92660
500 Bayview Circle Newport Beach, CA 92660
900 Newport Center Drive Newport Beach, CA 92660-
4545 MacArthur Boulevard Newport Beach „CA 92660
1221 West Coast Highway Newport.Beach, CA 92663
Newport Dunes Waterfront Resort &Marina 1139. Back Bay Drive Newport Beach CA 92660
APN: 440 - 13242'
440- 132-43
•440 - 132 -59
APN — Assessor Parcel Number
Attachment D
RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS .INTENTION TO
MODIFY THE MANAGEMENT DISTRICT PLAN OF THE
NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT
DISTRICT
WHEREAS, on April 28, 2009 the City Council of the City of Newport Beach
( "City Council ") adopted Resolution Number 2009 -21 adopting the Management District
Plan and establishing the Newport Beach Tourism Business Improvement District
( "NBTBID "); and
WHEREAS, the Property and Business Improvement District Law of 1994„
Streets and Highways. Code Sections 36600 et seq., allows the City Council to modify
the Management District Plan ( "MDP ") at the request of the Owners' Association;' and
WHEREAS,, on November 14, 2013, the NBTBID Owners' Association, Visit
Newport Beach ( "VNB ") requested modification of the MDP pursuant to California
Streets and Highways Code Section 36635.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves, as
follows:
Section. 1: The recitals provided above are true and correct and are
Incorporated into the substantive portion of this resolution.
Section 2: The City Council declares its intention to modify the NBTBID MDP.
Section 3: The proposed modification of the NBTBID MDP will shorten the
duration of the NBTBID, from five (5) years to four (4) years and nine (9) months. The
modification will cause the NBTBID to expireon January 31, 2014.
Section 4: The time and place for a public meeting on modification of the
NBTBID MDP is set for 7`00 p.m. or as soon thereafter as the matter may be heard on
December 10, 2013, . at the Council Chambers located at 100 Civic Center Drive,
Newport Beach, CA 92660.
Section 5: The time and place for a public hearing on modification of the
NBTBID MDP is set for 7 :00 p,m. or as soon thereafter as the matter maybe heard on
January 14, 2014, at the Council Chambers located at 100 Civic Center Drive, Newport
Beach, CA 92660.
Section 6: The City Clerk is directed to provide notice of the public meeting
and public hearing in accordance with Streets and Highways Code Section 36636.
Section 7: The City Council finds the .adoption of this resolution of intention is
not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 1.5060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title
14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
Section 8: If any section, "subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this resolution. The
City Council hereby declares that it would have passed this resolution, and each
section, subsection, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses and phrases be declared invalid or
unconstitutional.
Section 9- This resolution shall take effect immediately upon its adoption by
the City Council and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 261h day of November, 2013.
Keith D. Curry,
Mayor
ATTEST:
Leilani I. Brown,
City Clerk