REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Adoption of a Resolution Declaring Results of Majority Protest Proceedings and Renewing the Santa Clara Tourism Improvement District (District), and Action on an Agreement with Silicon Valley/Santa Clara DMO, Inc. d/b/a Discover Santa Clara for the Administration of the District
Report
BACKGROUND
Tourism Improvement Districts
Tourism Improvement Districts ("TIDs") utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow assessed business owners to organize their efforts to increase tourism. Business owners within the TID fund the TID, and those funds are used to provide services that are desired by and benefit the assessed businesses within the TID.
In California, TIDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 ("94 Law"). This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between TIDs and other special benefit assessment districts is that funds raised are intended to fund services or improvements that benefit the assessed businesses pursuant to an adopted plan. The law permits a nonprofit organization, often called an "owners' association" to provide the services and improvement required to implement the plan.
Santa Clara Tourism Improvement District (SCTID)
The City of Santa Clara ("City") originally formed the SCTID in 2005 under the 1989 Parking and Business Area Law, covering eleven lodging businesses near the Convention Center with a $1.00 per occupied room night assessment. Beginning in FY 2019/20, lodging businesses pursued reconstitution under the 1994 Law to transition to a percentage-based assessment, through COVID-19 prompted Council to temporarily postpone conversion and renew the district under the 1989 Law in April 2020. Following renewed Council direction in January 2021 and...
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