REPORT TO COUNCIL
SUBJECT
Title
Discussion and Direction on the Conversion of the Santa Clara Tourism Improvement District (TID) Established Under the Parking and Business Improvement Area Law of 1989 to a TID Established under the Property and Business Improvement District Law of 1994.
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
EXECUTIVE SUMMARY
Lodging businesses located within the Santa Clara Tourism Improvement District (TID) are interested in establishing a district under the Property and Business Improvement District Law of 1994 (1994 Law). Concurrently, the lodging businesses are interested in changing the assessment from $1.00 per occupied room night to a maximum of 2% of gross revenue of short-term room rentals.
The TID conversion process was initiated in FY 2019/20. With the onset of the COVID-19 pandemic and the uncertainty of the economic effects of the pandemic, the conversion process was subsequently put on hold with Council direction to revisit the conversion process at a later time. As the TID has continued interest in pursuing this effort, this staff report provides a summary of the proposed changes sought by the lodging businesses.
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.
The Ordinance also established a TID Advisory Board (the "Advisory Board") to administer the affairs of the TID. T...
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