REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Adoption of a Resolution of Formation of the Santa Clara Tourism Improvement District under the Property and Business Improvement District Law of 1994
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The existing Santa Clara Tourism Improvement District (TID) was formed in 2005 pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law). On January 11, 2005, City Council approved Ordinance No. 1797 (the "Ordinance") amending the Santa Clara Municipal Code and establishing TID. The Ordinance established the boundaries of the TID, which currently includes 11 hotels near the Santa Clara Convention Center: AC Hotel Santa Clara, Avatar Hotel, Biltmore Hotel & Suites, Element Santa Clara, Embassy Suites, Hilton Santa Clara, Hyatt House, Hyatt Regency, Marriott Santa Clara, The Plaza Suites, and TownePlace Suites by Marriott.
On January 26, 2021, Council consented to the Santa Clara Tourism Improvement District's request to pursue the formation of the district under the 1994 Law. Additionally, Council concurred with the TID's requested approach to change the TID assessment method from $1.00 per occupied room night to 1.5% of gross short-term room rentals, with the option to increase the assessment to 2% in year two.
Petitions in favor of SCTID formation were submitted by six (6) lodging businesses, which represented 76.51% of the total TID assessment. This majority petition allowed the Council to initiate proceedings for the SCTID formation.
On April 6, 2021, Council approved Resolution No. 21-8955 declaring the City's intent to establish the Santa Clara Tourism Improvement District (SCTID) under the 1994 Law. A summary of the key provisions of the SCTID are as follows:
* Location: The proposed Santa Clara Tourism Improvement District (SCTID) includes all lodging businesses with ten (10) rooms or more located within the District boundaries.
* Se...
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