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HomeMy WebLinkAbout2009-21 - Forming Tourism Business Improvement DistrictRESOLUTION NO. 2009-21 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING THE RESULTS OF THE MAJORITY PROTEST PROCEEDINGS AND FORMING THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and Highways Code § 36600 et seq.) authorizes the city to establish a tourism business improvement districts upon petition by a weighted majority of the lodging business owners located within the boundaries of the District. WHEREAS, a majority of the lodging business owners subject to assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the proposed Newport Beach Tourism Business Improvement District ( NBTBID) have petitioned the City Council to establish the NBTBID. WHEREAS, the lodging business owners subject to assessment who signed the petitions will pay more than fifty (50) percent of the proposed assessment. WHEREAS, included with the petitions was a management district plan summary that describes the proposed assessment to be levied on lodging businesses within the NBTBID to pay for marketing activities, and those other activities authorized in Streets and Highways Code §36613. WHEREAS, the lodging businesses within the NBTBID will be benefited by the activities and improvements set forth in the Management District Plan. WHEREAS, at 7:00 p.m. on March 10, 2009, at 3300 Newport Boulevard, Newport Beach, California 92663, the City Council adopted a Resolution of the City council of the city of Newport Beach Declaring Its Intention to Establish the Newport Beach Tourism Business Improvement District ( NBTBID) and Fixing the Time and Place of a Public Meeting and a Public Hearing Thereon and Giving Notice Thereof, Resolution Number 2009 -14. WHEREAS, the public meeting and public hearing to consider the formation of the NBTBID has been properly noticed in accordance with Streets and Highways Code §36623. WHEREAS, at 7:00 p.m. on April 14, 2009, at 3300 Newport Boulevard, Newport Beach, California 92663, the City Council held a public meeting regarding the establishment of the NBTBID, and no objections or protests to the establishment of the NBTBID and the levy of the proposed assessment were registered. WHEREAS, at 7:00 p.m. on April 28, 2009, at 3300 Newport Boulevard, Newport Beach, California 92663, the City Council held a public hearing regarding the establishment of the NBTBID, and the City Council heard and received all objections and protests to the establishment of the NBTBID and the levy of the proposed assessment. WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the proposed area which would pay more than fifty percent (50 %) of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: The recitals set forth herein are adopted by the City Council as findings and they are true and correct. The Newport Beach Tourism Business Improvement District ( NBTBID) is hereby established for a five (5) year term that will expire on April 28, 2014. 3. The assessments levied for the NBTBID shall be applied toward sales promotion and marketing programs to market Newport Beach as a tourist, meeting and event destination, and other activities as set forth in Streets and Highways Code §36613. 4. The revenue from the levy of the assessments on lodging businesses within the NBTBID may not be used to provide for activities or improvements outside the NBTBID or for any purpose other than those specified herein and the Resolution of Intention. 5. Assessments levied on lodging businesses pursuant to this Resolution shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on room rentals is the best measure of benefit. The activities and improvements set forth will be funded by the levy of an assessment on lodging businesses within the NBTBID, as described in the Management District Plan that is on file with the City Clerk. 8. No bonds shall issue to fund the NBTBID. 9. The boundaries of the NBTBID shall be the boundaries of the City of Newport Beach. Please see the attached map, incorporated herein as Exhibit A. 10. The NBTBID shall assess six (6) hotels within the city limits of Newport Beach 2.0% of gross short term (stays less than 30 days) room rental revenue. 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, and the Balboa Bay Club and Resort. Gross room revenue is defined as total room revenue less any local, state or federal sales taxes or transient occupancy taxes. Lodging business stays of more than 30 consecutive days shall not be assessed. Based on benefits received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, time shares shall not be assessed. 11. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which NBTBID assessments are levied as long as they are used consistent with the requirements set forth herein. 12. The assessments to fund the activities and improvements for the NBTBID will be collected at the same time and in the same manner as are transient occupancy taxes, and, in accordance with Streets and Highways Code §36631. 13. The Newport Beach Conference and Visitors Bureau (NBCVB) shall be the Owners Association pursuant to Streets and Highways Code §36614.5. 14. The NBCVB, pursuant to Streets and Highways Code §36650, 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 first report shall be due after the first year of operation of the district. 15. Business in the NBTBID established pursuant to this resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et seq.). 16. The Director of Administrative Service, or his/her designee, is directed to take all necessary actions to complete the establishment of the NBTBID and to levy the assessments. The City of Newport Beach shall be reimbursed 0.25% of the TBID receipts annually for services rendered in connection with the collection of the levy and disbursement to the TBID. 17. The City Clerk is directed to record in the Orange County Recorder's Office a notice and assessment diagram, as required by Streets and Highways Code §36627. The text of the recorded notice shall state that the assessment is levied only against lodging businesses within the area of the NBTBID. 18. This resolution shall take effect immediately upon its adoption by the City Council. The collection of the assessment levied by the TBID shall commence May 1, 2009. I HEREBY CERTIFY that the foregoing resolution of formation was introduced and adopted at a regular meeting of the City Council on the 28fl' day gf- A1pri12009. Mayor Attest: STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH ) I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2009 -21 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 28th day of April, 2009, and that the same was so passed and adopted by the following vote, to wit: Ayes: Henn, Rosansky, Curry, Webb, Gardner, Daigle, Mayor Selich Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 29th day of April, 2009. (Seal) City Clerk Newport Beach, California