REPORT TO COUNCIL
SUBJECT
Title
Action on the FY 2023/24 Annual Report for the Santa Clara Tourism Improvement District (SCTID) as Presented 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 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, and TownPlace Suites San Jose Santa Clara.
On May 25, 2021, at the request of the lodging businesses, City Council, pursuant to the Property and Business Improvement District Lay of 1994 (1994 Law), Streets and Highways Code Section 36600 et seq. approved Resolution No. 21-8694 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 occupied room night to 1.5% of gross short-term (30 days or less) room rentals (10 or more) for 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 mark...
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