REPORT TO COUNCIL
SUBJECT
Title
Action on the FY 2024/25 Annual Report for the?Santa?Clara?Tourism Improvement District (SCTID) as Presented by the SCTID Owner's Association (the DMO)
Report
BACKGROUND
The?Santa?Clara?Tourism Improvement District (SCTID), initially formed in 2005 pursuant to the Parking and Business Improvement Law of 1989, includes 11 hotels near the?Santa?Clara?Convention Center: AC Hotel?Santa?Clara, Avatar Hotel?Santa?Clara, Delta Hotels?Santa?Clara?Silicon Valley, Embassy Suites by Hilton?Santa?Clara?Silicon Valley, Hilton?Santa?Clara, Hyatt Centric?Santa?Clara?Silicon Valley, Hyatt House?Santa?Clara, Hyatt Regency?Santa?Clara,?Santa?Clara?Marriott, Element Santa Clara, and TownePlace Suites San Jose?Santa?Clara.
On May 25, 2021, at the request of the lodging businesses, pursuant to the Property and Business Improvement District Law of 1994 (1994 Law), Streets and Highways Code Section 36600 et seq. the City Council approved Resolution No. 21-8694 establishing the Santa Clara Tourism Improvement District to fund sales and marketing efforts supporting convention and group business travel.
The SCTID was formed for a five-year term (July 1, 2021 - June 30, 2026), and the assessment method was changed from a flat $1.00 per occupied room night to 1.5% of gross short-term (30 days or less) room rentals for 10 or more rooms, effective beginning in FY 2021/22. On June 6, 2022, City Council actions included support for the Silicon Valley/Santa?Clara?DMO, Inc.'s proposed SCTID assessment increase from 1.5% to 2.0% which went into effect July 1, 2022.
Per the SCTID's Management District Plan, the Silicon Valley/Santa?Clara?DMO, Inc. dba?Discover?Santa?Clara(r) (the DMO) serves as the SCTID Owner's Association and is responsible for managing the affairs of the SCTID as well as implementing activities and programs as outlined in the Management District Plan. The DMO has an active contract with the City to provide destination marketing services th...
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