REPORT TO COUNCIL
SUBJECT
Title
Action on Adoption of a Resolution of Intention to Establish the Santa Clara Tourism Improvement District under the Property and 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 the TID. The Ordinance established the boundaries of the TID, which currently includes eleven (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.
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 determination 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 operating a district, as compared with the 1989 Law. One significant difference is that the district must be renewed annually under the 1989 law, where under the 1994 law, the district initial term can be formed for up to five (5) years and renewed for up to 10 years. Additionally, the 1989 Law requires the appointment of an advisory board to provide oversight of district affairs where the 1994 Law calls for a non-profit organization to manage the affairs and funds for the district under the guid...
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