REPORT TO COUNCIL
SUBJECT
Title
Public Meeting on the Formation of the Santa Clara Tourism Improvement District and the Levy of Assessments on Affected Lodging Businesses
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
Report
BACKGROUND
On January 26, 2021, Council consented to the Santa Clara Tourism Improvement District's request to pursue the formation of the District under the 1994 Law. Additionally, Council concurred with the TID's requested approach to change the TID assessment method from $1.00 per occupied room night to 1.5% of gross short-term room rentals, with the option to increase the assessment to 2% in year two. (RTC 21-3589).
On April 6, 2021, Council approved a Resolution of Intention establishing the Santa Clara Tourism Improvement District (SCTID) under the 1994 Law (RTC 21-153) and a summary of the key provisions of the SCTID are as follows:
* Location: The proposed Santa Clara Tourism Improvement District (SCTID) includes all lodging businesses with ten (10) rooms or more located within the District boundaries.
* Services: The SCTID is designed to provide specific benefits directly to payors by increasing room night sales. Convention sales, incentives, and services and marketing and communication programs will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.
* Budget: The total SCTID annual budget for the initial year is anticipated to be approximately $610,936.
* Cost: The annual assessment rate is one and one-half of one percent (1.5%) of gross short-term room rental revenue. After the initial year of the SCTID's five (5) year term the assessment rate may be increased in any year by the Owners' Association's Board to a maximum of two percent (2%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on stays by any officer or employee of a foreign government who...
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