REPORT TO COUNCIL
SUBJECT
Title
Action on the FY 2021/22 Annual Report and Proposed Budget for FY 2022/23 for the Santa Clara Tourism Improvement District (SCTID) as Recommended by the SCTID Owner's Association
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The Santa Clara Tourism Improvement District, 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, Delta Santa Clara, Element Santa Clara, Embassy Suites, Hilton Santa Clara, Hyatt Centric Silicon Valley, Hyatt House, Hyatt Regency, Marriott Santa Clara, and TownePlace Suites by Marriott.
On May 25, 2021, at the request of the lodging businesses, City Council, pursuant to the Property and Business Improvement District Law of 1994 (1994 Law), Streets and Highways Code Section 36600 et seq., approved Resolution No. 21-8964 establishing the Santa Clara Tourism Improvement District (SCTID) to fund sales and marketing efforts for convention and group business travel. The SCTID was formed for a five-year term, July 1, 2021 - June 30, 2026, and the assessment method for collections was changed from $1.00 per occupied room night to 1.5% of gross short-term (30 days or less) room rentals (10 rooms or more). After the initial year, the assessment rate may be increased by the Silicon Valley/Santa Clara DMO, Inc.'s Board an additional 0.5%, to a maximum of two percent (2%), subject to City Council approval.
Per the SCTID's Management District Plan, the Silicon Valley/Santa Clara DMO, Inc. d.b.a. Discover Santa ClaraTM (the DMO) serves as the SCTID's 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 through June 30, 2026.
Pursuant to ...
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