REPORT TO COUNCIL
SUBJECT
Title
Discussion and Direction on the Santa Clara Tourism Improvement District [Council Pillar: Promote and Enhance Economic and Housing Development]
Report
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 the TID. The Ordinance established the boundaries of the TID, which currently includes eleven 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.
In 1994, the State Legislature passed the Property and Business Improvement Law (1994 Law), adding Sections 36600 et seq. to the California Streets and Highways Code. The 1994 Law is based upon the belief that there is a particular local benefit to be derived from allowing business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. The 1994 Law includes procedural differences for the District, as compared with the 1989 Law.
Lodging businesses in the Santa Clara Tourism Improvement District (TID) decided to pursue the formation of the District under the 1994 Law and on November 12, 2019, Council consented to the TID's request (RTC 19-920). On February 11, 2020, City staff returned to Council with additional information on the potential assessment rate and for the purposes of preparing the necessary documents and Resolutions for future Council consideration as to the formation of the District, Council provided direction to proceed with a change to the TID assessment method from $1.00...
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