REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on a Resolution to Levy an Annual Assessment for the Santa Clara Tourism Improvement District (TID) for Fiscal Year 2019/20
Report
BACKGROUND
On January 11, 2005, City Council approved final passage of Ordinance No. 1797 (the "Ordinance") amending the Santa Clara Municipal Code and establishing the Tourism Improvement District ("TID"). The Ordinance established the boundaries of the TID, which 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 TownePlace Suites by Marriott. It is anticipated that upon completion of construction and commencement of occupancy, two new hotels will be added into the TID during FY 19/20.
The Ordinance also established a District Advisory Board (the "Advisory Board") to administer the affairs of the TID. The Advisory Board is constituted of representatives of businesses within the TID. All hotel properties located within the District boundaries collect a $1.00 fee from hotel guests on each occupied hotel/motel room night.
The TID was formed under the Parking and Business Improvement Law of 1989, Sections 36500 et seq. of the California Streets and Highways Code (the "Code"). The Code authorizes cities to establish Parking and Business Improvement Districts to promote tourism and to levy a benefit assessment on all participating businesses within such district.
Pursuant to Section 36533 of the Code and Santa Clara City Code ("SCCC") 16.10.1220, the Advisory Board is required to file with the City Clerk and submit to City Council by April 1st of each year an annual report that includes improvements and activities during the current fiscal year, the amount of any surplus or deficit to be carried over from a previous fiscal year, and a TID budget for the following fiscal year. The TID Annual Report w...
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