REPORT TO COUNCIL
SUBJECT
Title
Action on the Appointment of the Tourism Improvement District (TID) Advisory Board and Authorize the City Manager with Approval Authority to Pay TID Invoices
Report
BACKGROUND
In 1989, the State Legislature passed the Parking and Business Improvement Area Law, which added Sections 36500, et seq., to the California Streets and Highways Code ("Code"). The Code was created to "promote the economic revitalization and physical maintenance of the business districts of its cities in order to create jobs, attract new businesses, and prevent erosion of the business districts." The Code had the further goal of promoting tourism. To achieve this goal, the Code allowed cities to fund property related improvements and activities through the levy of assessments upon the businesses which benefit from those improvements and activities.
Pursuant to the authority granted under the Code, on January 11, 2005, City Council adopted Ordinance No. 1797 (the "Ordinance") amending the Santa Clara City Code to add Article IX entitled "Santa Clara Tourism Improvement District" to Chapter 16.10 ("Local Improvements -Acquisition and Improvement Procedure"), establishing the Tourism Improvement District ("TID") and its boundaries. The TID currently includes the following nine hotels near the Santa Clara Convention Center: Avatar Hotel, Biltmore Hotel & Suites, Embassy Suites, Hilton Santa Clara, Hyatt House, Hyatt Regency, Marriott Santa Clara, The Plaza Suites, and TownPlace Suites by Marriott. The Ordinance also requires that a District Advisory Board (the "Advisory Board") be established to administer the affairs of the TID. Per the ordinance, the advisory board shall be constituted of representatives of businesses within the district.
Although the City Council established the Advisory Board, the City Council has not had the opportunity to appoint the Board as required by the Code (Section 16.10.1120 (b)). Additionally, upon the City Council's ...
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