HomeMy WebLinkAbout2009/07/14 Item 18~n~- CITY COUNCIL
~ -' AGENDA STATEMENT
®_~ ;~ ~~ CITY OF
CHULA VISTA
JULY 14, 2009, Item ~ 1~
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING THE RESULTS OF THE
MAJORITY PROTEST PROCEEDINGS AND
ESTABLISHING THE CHULA VISTA TOURISM
MARKETING DISTRICT (CVTMD) AND DIRECTING THE
CITY CLERK TO TAKE ALL NECESSARY ACTIONS TO
LEVY THE ASSESSMENTS
SUBMITTED BY: DEPUTY CITY MANAGER /DEVELOPMENT SERVICES
DIRECTORS{, ~~(/f
REVIEWED BY: CITY MANAGER
4/STHS VOTE: YES ~ NO ^X
SUMMARY
The Chula Vista Chamber of Commerce (CVCC) and the Chula Vista Convention and Visitors
Bureau (CVCVB), working with lodging and business owners and members of the business
community, have prepared a plan for the formation of Chula Vista Tourism Marketing District
(CVTMD) which will levy aself-assessment on motel and hotel rooms. The CVTMD will create a
source of funding for renewed operation of the Convention and Visitors Bureau and for expanded
promotion of tourism opportunities in the City.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the CEQA Guidelines; therefore, pursuant to
Section 15060 (c) (3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus,
no environmental review is necessary.
RECOMMENDATION
Council adopt the resolution if no majority protest exists.
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Meeting Date 07/14/09
Page 2
BOARDS/COMMISSION RECOMMENDATION
Not applicable
DISCUSSION
The Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et
seq., authorizes cities to establish property and business improvement districts for the purposes
of promoting tourism.
The Chula Vista Chamber of Commerce (CVCC) and the Chula Vista Convention and Visitors
Bureau (CVCVB) composed of lodging business owners, members of the business community
and representatives from the City of Chula Vista have met to consider the formation of the Chula
Vista Tourism Mazketing District (CVTMD). The purpose of CVTMD is to levy and collect
assessments on lodging businesses within the proposed CVTMD boundaries pursuant to the
Property and Business Improvement District Law of 1994.
The CVCC and the CVCVB has drafted a Management District Plan which sets forth the
proposed boundary of the CVTMD, a service plan and budget, and a proposed means of
governance. The Management District Plan satisfies all requirements of Streets and Highways
Code § 36622
A majority of the lodging business owners subject to assessment proposed in the Management
District Plan, that will pay more than fifty (50) percent of the assessment have signed and
submitted petitions to the City Council in support of the formation and establishment of the
CVTMD
Business Improvement Districts represent an innovative approach to business promotion and
service delivery. BIDs have traditionally been established by groups of local business and/or
property owners to improve specific business areas through increased promotion, beautification
efforts, increased maintenance, special events and other activities determined by the local BID
boazd. Funding for these activities is derived from assessments paid by the members of the BID.
Under the proposed CVTMD, an assessment of 2.5% will be levied on short-term gross room
rental revenues for lodging businesses. All existing lodging businesses in the City will be subject
to the assessment. New lodging businesses opening subsequent to the formation of the CVTMD
will also be subject to the assessment.
Under applicable state law, the CVTMD will have a five (5) yeaz term unless renewed pursuant
to Streets and Highways Code 36660. Renewal will require a return to City Council and will
follow the same procedures used to establish the original CVTMD. Any request for renewal at
that time would be reviewed under both the business promotion needs, and the general Ciry
needs existing at the time of the renewal request.
The CVTMD will have three zones. Zone 1 shall include the area of Chula Vista east of
Interstate 5 with the exception of the Eastern Urban Center. Zone 2 shall include all azeas west of
Interstate 5. Zone 3 shall be comprised solely of the Eastern Urban Center. In Zone 1, the
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Meeting Date 07/14/09
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monies collected from the special assessment will go to the CVCC, which will serve as the
CVTMD Owners' Association. In Zone 2 and Zone 3, 2.0% of the 2.5% collected may be used
to fund capital improvements or to provide revenues for debt service if Council chooses to issue
capital infrastructure bonds for capital improvements, the remaining 0.5% will go to Owners'
Association. Until and unless bonds aze issued in Zones 2 and 3, any funds collected in these
zones will go to the CVCC and be used in the same way as monies collected in Zone 1. If bonds
aze issued, the assessment may continue to be levied until the maximum maturity of the bonds.
Assessments used to repay bond debt shall have a term of 30 yeazs.
Annual assessment rates are 2.5% of gross short term (stays less than 31 days) room rental
revenue on lodging businesses. The District shall have three zones. Zone 1 shall include the
azea of Chula Vista east of Interstate 5 with the exception of the Eastern Urban Center. Zone 2
shall include all hotels and motels west of Interstate 5. Zone 3 shall include all hotels and motels
in the Eastern Urban Center. The Eastern Urban Center is bound by State Route 125 to the west,
Birch Road to the-north, Eastlake Parkway to the east and the future extension of Hunte Parkway
to the south. Bonds may be issued in Zone 2 and Zone 3. In Zone 1, the monies collected from
the special assessment will go to the Owners' Association. In Zone 2 and Zone 3, 2.0% of the
2.5% collected will go towazds capital improvements, and the remaining 0.5% will go to
Owners' Association. At the Council's discretion, this 2% in assessments collected in Zones 2
and 3 may be used to repay a capital infrastructure bond if Council chooses to issue bonds. Until
and unless bonds are issued in Zones 2 and 3, any funds collected in these zones will go to the
CVCC and used in the same way as monies collected in Zone 1. Lodging business stays of 31
or more consecutive days shall not be assessed. Based on the benefit received, stays at RV pazks
and campgrounds within the Boundaries of the CVTMD shall not be assessed.
The assessments levied for the CVTMD shall be applied towazd the operation of the Chula Vista
Visitor's Information Center, sales promotion and mazketing programs to market Chula Vista as
a tourist, meeting and event destination, and other capital improvements as set forth in Streets
and Highways Code § 36610. The assessments will also be used to fund 50% of a Graphic
Designer City staff position, which will provide a continuation of support for marketing and
promotion programs for the CVCC and CVCVB. Funds remaining at the end of any yeaz may be
used in subsequent years in which CVTMD assessments are levied as long as they are used
consistent with the requirements of this resolution.
Approval of the attached resolution is the fmal action required for the formation of the Chula
Vista Tourism Marketing District. State law requires that prior to this final action, the City first
declared its intent to establish the district and levy the assessment and establish the date and time
for a public meeting (completed May 12, 2009 and May 26, 2009).
During tonight's public hearing concerned parties aze provided an opportunity to provide
testimony regarding the formation of the CVTMD. If written protests aze received from owners
of businesses in the proposed area which would pay fifty percent (50%) or more of the
assessments to be levied (a majority protest), no further Council action is required and the
resolution would be withdrawn.
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Meeting Date 07/14/09
Page 4 of 4
If the City Clerk has determined that there was no majority protest, Council may consider
adoption of the resolution establishing the CVTMD.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is
not site specific and consequently, the 500-foot rule found in California Code of
Regulations section 18704.2(a)(1) is not applicable to this decision.
CURRENT YEAR FISCAL IMPACT
There will be no fiscal impact to the City's General Fund as a result of this action.
ONGOING FISCAL IMPACT
There will be no fiscal impact to the City's General Fund as a result ofthis action.
ATTACHMENTS
1. Chula Vista Tourism Mazketing District, Management District Plan
2. Chula Vista Tourism Mazketing District -Petition
Prepared by.' Denrry Srone, Economic Development Officer, Development Services
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Attachment 1
CHULA VISTA TOURISM MARKETING
DISTRICT
MANAGEMENT DISTRICT PLAN
Submitted to-the
Chula Vista Chamber of Commerce
And the
Chula Vista Convention and Visitors Bureau
Apri128, 2009
by
Downtown Resources
~u ~ ~~Q
3 ~,
,. :: 4 .... 1.
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CHULA VISTA TOURISM MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
TABLE OF CONTENTS
I. INTRODUCTION AI~'D OVERVIEW ...........................................................................2
II. WHY A TOURISM MARKETING DISTRICT FOR CHUZA VISTA? .......................4
III. WHAT IS A TOURISM MARKETING DISTRICT? ....................................................5
IV. CHULA VISTA TOURISM MARKETING DISTRICT BOUNDARY ........................6
V. SERVICE PLAN AND BUDGET ..................................................................................7
VL TOURISM MAKERTING DISTRICT GOVERNANCE .............................................10
APPENDIX 1 -THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF
1994 ..............................................................................................................1
1
APPENDIX 2 -LODGING BUSIlVESSES TO BE ASSESSED WITHIN CHULA VISTA
TMD .........................................................................................................................................21
Chula Vista Tourism Marketing District Management District Plau Page 1
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I. INTRODtiCTION AND OVERVIEW
Developed by the Chula Vista Chamber of Commerce (CVCC) and the Chula Vista Convention
and Visitors Bureau (CVCVB), the Chula Vista Tourism Mazketing District (CVTMD) is a
benefit assessment district proposed to help fund marketing and sales promotion efforts for Chula
Vista lodging businesses, and to pay for capital infrastructure west of Highway 5 and within the
Eastern Urban Center. This approach has been used successfully in other destination azeas
throughout the country to improve tourism and drive additional room nights.
Location: The proposed CVTMD includes atl lodging businesses located within the
boundaies of the city of Chula Vista.
Services: Marketing and sales promotions to increase tourism and to market Chula Vista as
a tourist, meeting and event destination.
Budget: The total CVTMD budget for yeaz one of its five (5) year operation is a base of
approximately $650,000.
Cost: Annual assessment rates are 2.5% of gross short term (stays less than 31 days)
room rental revenue on lodging businesses. The District shall have three zones.
Zone 1 shall include the area of Chula Vista east of Interstate 5 with the exception
of the Eastern Urban Center. Zone 2 shall include all hotels and motels west of
Interstate 5. Zone 3 shall include all hotels and motels in the Eastem Urban
Center. The Eastern Urban Center is bound by State Route 125 to the west, Birch
Road to the north, Eastlake Pazkway to the east and the future extension of Hunte
Pazkway to the south. Bonds may be issued in Zone 2 and Zone 3. In Zone 1, the
monies collected from the special assessment will go to the Owners' Association.
In Zone 2 and Zone 3, 2.0% of the 2.5% collected will go towards capital
improvements, and the remaining 0.5% will go to Owners' Association. At the
Council's discretion, this 2% in assessments collected in Zones 2 and 3 may be
used to repay a capital infrastructure bond if Council chooses to issue bonds.
Until and unless bonds are issued in Zones 2 and 3, azry funds collected in these
zones will go to the CVCC and used in the same way as monies collected in Zone
1. Lodging business stays of 31 or more consecutive days shall not be assessed.
Based on the benefit received, stays at RV pazks and campgrounds within the
Boundaries of the CVTMD shall not be assessed.
Formation: TMD formation requires submittal of petitions from lodging businesses
.representing more than 50% of the total annual assessment followed by a City
Council hearing and an opportunity for a written protest. The assessed lodging
business owners will receive notice of the public hearing by mail. If there is a
majority written protest, the TMD will not be formed.
Chula Vista Tourism Markefing District Management District Plan Page z
~8-~
Duration: The proposed District CVTMD will have afive-yeaz life. The assessments used
to repay bond debt shall have a term of 30 yeazs. The CVTMD assessment will be
implemented beginning July 15, 2009. Once per year there is a 30 day period in
which owners paving more than 50% of the assessment may protest and terminate
the district.
Chula Vista Tourism Marketing District Management District Plan Page 3
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II. VVHY A TOL`RISM MARKETING DISTRICT FOR CHULA VISTA?
There aze several reasons why now is the right time to form a Tourism Mazketing District in
Chula Vista; the most compelling reasons are as follows:
I. The Need to Increase Occupancy
The formation of the CVTMD is a proactive effort to provide supplemental funding
beyond that provided by the City of Chula Vista. The funding ensures the CVCC and the
CVCVB have adequate financing for the investment required to increase occupancy in the
lodging industry and reach competitive in the conference segment of the tourism mazket.
The investment will cover an expanded marketing and promotional budget needed to
reach this market segment.
2. An Opportunit}~for Increasing City Tax Revenues
As occupancy rates increase, so too will the City's TOT revenue. With stable
public/private funding for the CVCC and the CVCVB, annual occupancy rates should
increase sit°ruficantly as the new mazketing and sales promotion programs are
implemented. Greater occupancy will also produce an increase in sales tax revenues from
tourist spendins. This represents a substantial return to the City. The formation of a
CVTMD in partnership with the CVCC and the CVCVB creates a stable funding source
tied directly to tourism promotion
3. The Abilit)~ to Grow the Economp without Substantial Development
The CVCC and the CVCVB expect to achieve the above levels of revenue growth
without a proportionate increase in the "footprint" of the tourism industry infrastructure.
Little or no development should be required to raise average occupancy rates. Any
development required to raise occupancy rates even more should be relatively minor in
scope compazed to the existing facilities.
4. The Opportunity to Fund Infrastructure TI'est of Highway 5 and within tlae Eastern
Urban Center
The CVTMD will utilize 2% of the total gross revenues to repay a capital infrastructure
bond. These bond monies will be used to construct needed improvements west of
Interstate 5 and within the Eastem Urban Center.
Chula Vista Tourism Marketing District Management District Plan Page 4
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III. WHAT IS A TOURISM MARKETING DISTRICT?
Tourism Mazketing Districts (TMDs) utilize the efficiencies of private sector operation in the
market-based promotion of tourism districts. Tourism Mazketing Districts allow lodging and
tourism-related business owners to organize their efforts to increase tourism. Tourism-related
business owners within the district fund a TMD, and those funds aze used to provide services that
the businesses desire and that benefit the lodging businesses within the District.
Tourism Marketing District sen~ices may include, but are not limited to:
- Operation of the Chula Vista Visitor Information Center
- Marketing of the Area
Tourism Promotion Activities
7 Sales Lead Generation
i Infrastructure Financing
In California, Tourism Mazketing Districts aze formed pursuant to the Property and Business
Improvement District Law of 1994 (PBID Law). This law allow for the creation of a special
benefit assessment district to raise funds within a specific geographic area. The key difference
between TMDs and other special benefzt assessment disn~icts is that funds raised are returned to
the private non profit. corporation governing the district.
There are many benefits to Tourism Marketing Districts:
i Funds cannot be diverted for other government programs;
i Tourism Marketing Districts are customized to fit the needs of each tourism
district;
v They allow for a wide range of services, including those listed above;
Tourism Marketing Districts are designed, created and governed by those who
will pay the assessment;
The statute requires petition support from lodging businesses paving over ~0% of
the annual proposed assessments;
- They provide a stable funding source for tourism promotion.
The Property and Business Improvement District Law of 1994 (AB 3754), as amended January 1,
2009, is provided in Appendix 1 of this document.
Chula Vista Tourism Marketing District Management District Plan Page 5
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IV. CHLZA VISTA TMD BOUND_~RY
The Chula Vista TMD will include all lodging businesses, existing and in the future, available
for public occupancy within the boundaries of the city of Chula Vista.
The boundary currently includes 23 lodging business. Please see the map below. A larger map is
available on request by calling (619) 420-6603.
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Chula Vista Tourism Marketing District Management District Plan Page 6
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SERVICE PLAN AND BUDGET
A. Assessment
The Tourism Mazketing District annual assessment rates aze based upon 2.5% of gross short term
(stays less than 31 days) room rental revenue per night for hotels or motels. Lodging business
stays of 31 or more consecutive days shall not be assessed. Based on benefits received, stays at
RV pazks and campgrounds within the boundaries of the CVTMD shall not be assessed.
Bonds may be issued
The amount of assessment, if passed on to each transient, shall be sepazately stated from the
amount of rent chazged and any other applicable taxes, and each transient shall receive a receipt
for payment from the business.
B. Determination of Special Benefit
State law provides that the expenses of the district shall be apportioned in proportion to the benefit
received by assessed businesses.
A special benefit is defined as a particulaz and distinct benefit over and above general benefits
confesed on the public at lazge. Conversely, a general benefit is a benefit to businesses in the
surrounding community or a benefit to the public in general resulting from the improvement,
activity or service to be provided by the assessment levied. Many general benefits to the public at
lazge aze conveyed by municipal services, such as fire protection, police services and public transit
services. These services are targeted to serve the public at lazae and do not confer special benefits
on particulaz businesses.
The services in this Management District Plan aze designed to provide targeted services to lodging
businesses. These services aze tailored. not to serve the general public, but rather to serve the
specific lodging businesses within the District, e.g., the proposed activities are specifically tazgeted
to increase room nights for assessed lodging businesses within the boundaries of the District, and
aze narrowly tailored. TMD funds will be used exclusively to benefit the assesses.
The activities paid for from assessment revenue are lodging business services creating special
benefit to those businesses. In addition, these activities aze not for the benefit of the general public
and do not provide general benefit as defined above. All general benefits (if any) to the surrounding
community and general public are intangible and unquantifiable. It is appropriate that these special
business-related benefits be funded through business assessments.
C. Time and Manner for Collecting Assessments
The CVTMD assessment will be implemented beginning July 15, 2009 and will continue for five
yeazs. The assessments used to repay bond debt shall have a term of 30 yeazs. The City of Chula
Chula Vista Tourism Marketing District Management District P-an Page 7
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Vista will be responsible for collecting the assessment on a monthly basis (including any
delinquencies, penalties and interest) from each lodging business located in that the boundaries
of the TMD. Assessments shall be collected monthly and the City shall take all reasonable
efforts to collect the assessments from each lodging business. The City of Chula Vista shall
forwazd the assessments to the CVCC which will have the responsibility to manage the TMD
programs as provided in the Management District Plan.
D. Service Plan Budget and Programs to be Provided:
Service Plan Budget Summary- Calendar Years 2009-2014
The summary of the calendaz yeaz 2009 (year one) service plan budget for the CVTMD is
provided on the following pages. The total five year improvement and service plan budget is
projected at approximately $650,000 annually, or $3.25 million through 2014.
E. Annual Service Plan:
A service plan budget has been developed to deliver service levels throughout the District. An
annual service plan and budget will be developed and approved by the CVCC Board. Please see
the budget exhibit below. The budget also includes a portion for contingencies and renewal of
the District. Should the CVCC Boazd approve, funds may be appropriated for the renewal effort.
If there are funds remaining at the end of the District term and lodging businesses choose to
renew, these remaining funds could be transferred to the renewed District. If there are funds
remaining at the end of the District and lodging businesses choose not to renew, any remaining
funds will be spent consistent with this Plana
Chula Vista Tourism Marketing District Management District Plan Page 8
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Chula Vista Tourism Marketing District
Annual Budget, Year One
Chula Vista Tourism Marketing District Management District Plan Page 9
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V. BID GOVERNANCE
A. Chula Vista Tourism Marketing District Corporation Governance
The CVCC will serve as the Owners' Association for the CVTMD. The CEO of the CVCC will
be charged with the day-to-day operations of the Tourism Marketing District.
Chula Vista Tourism Marketing District Management District Plan Page 10
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APPENDIX 1-THE PROPERTY AND BUSIIV"ESS IMPROVEMENT
DISTRICT LAW OF 1994
STREETS AND HIGHWAYS CODE
SECTION 36600 et seq.
As Amended.Tanua~yl, 2009
Declazations
36600. This part shall be known and may be cited as the "Property and Business Improvement
District Law of 1994."
36601. The Legislature finds and declares all of the following:
(a) Businesses located and operating within the business districts of this state's communities aze
economically disadvantaged, are underutilized, and aze unable to attract customers due to inadequate
facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of
the business distracts of its cities in order to create jobs, attract new businesses, and prevent the
erosion of the business districts.
(c) It is of particulaz local benefit to allow cities to fund business related improvements,
maintenance, and activities through the levy of assessments upon the businesses or real property that
benefits from those improvements.
(d) Assessments levied for the purpose of providing improvements and promoting activities that
benefit real property or businesses aze not taxes for the general benefit of a uty, but aze assessments
for the improvements and activities which confer special benefits upon the real property or
businesses for which the improvements and activities aze provided.
36602. The purpose of this part is to supplement previously enacted provisions of law that
authorize cities to levy assessments within a business unprovement azea. This part does not affect
or limit any other provisions of law authorizing or providing for the furnishing of improvements ox
activities or the raising of revenue for these purposes.
36603. Nothing in this part is intended to preempt the authority of a charter city to adopt
ordinances providing for a different method of levying assessments for similar or additional
purposes from those set forth in this part. A property and business improvement district created
pursuant to this part is expressly exempt from the provisions of the Special Assessment
Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section
2800)).
36603.5. Any provision in this part that conflicts with any other provision of law shall prevail over
the other provision of law.
36604. This part is intended to be construed liberally and, if any provision is held invalid, the
remaining provisions shall remain in full force and effect. Assessments levied under this part aze not
special taxes.
Chula Vista Tourism Markefing District Management District Plan Page 11
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Definitions
36606. "Assessment" means a levy for the purpose of acquiring, constructing, installing, or
maintaining improvements and promoting activities which will benefit the properties or businesses
located within a propem and business improvement district.
36607. "Business" means all types of businesses and includes financial institutions and professions.
36608. "City" means a city, county, city and county, or an agenry or entity created pursuant to
Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government
Code, the public member agencies of which includes only uties, counties, or a city and county.
36609. "Cit3- council" means the city council of a city ox the board of supervisors of a county, or the
agency, commission, ox board created pursuant to a joint powers agreement and which is a city
within the meaning of this part.
36610. "Improvement" means the acquisition, construction, installation, or maintenance of any
tangible propem udth an estimated useful life of five years or more including, but not limited to, the
following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs.
(c) Trash receptacles and public restrooms.
(d) bighting and heating facilities.
(e) Decorations.
(~ Pazks.
(~ Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets.
(j) Facilities or equipment, or both, to enhance security of persons and propert~~ within thearea.
(k) Ramps, sidewalks, plazas, and pedestrian malls.
(1) Rehabilitation or removal of existing structures.
36611. "Propert< and business improvement district," or "distract," means a property and business
improvement distract established pursuant to this part.
36612. "Property" means real property situated within a distract.
36613. "Activities" means, but is not limited to, all of the following:
(a) Promotion of public events which benefit businesses or real property in the district.
(b) Furnishing of music in any public place within the distract.
(c) Promotion of tourism within the distract.
(d) Marketing and economic development, including retail retention and recruitment.
(e) Providing securify, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal
services supplemental to those normally provided by the municipality.
(f) Activities which benefit businesses and real property located in the district.
36614. "Management distract plan" ox "plan" means a proposal as defined in Section 36622.
Chula Vista Tourism Marketing District Management District P-an Page 12
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366145. "Cwvners' association" means a private nonprofit entity that is under contract with a city to
administer or implement activities and improvements specified in the management distract plan. An
owners' association may be an e~sting nonprofit entity ox a newly formed nonprofit entity. An
owners' association is a private entity and may not be considered a public entity for any purpose, nor
may its board members or staff be considered to be public officials fox any purpose.
Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part 1 of D1~151on 2 of Title 5 of the Government
Code), at all times when matters within the subject matter of the district are heazd, discussed, ox
deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Tide 1 of the Government Code), for all documents relating to activities of
the district.
36615. "Property owner" or "owner means any person shown as the owner of land on the last
equalized assessment roll or otherwise known to be the owner of land by the city council. The city
council has no obligation to obtain other information as to the ownership of land, and its
determination of ownership shall be final and conclusive for the purposes of this part. Wherever
this subdivision requires the signature of the property owner, the signature of the authorized agent
of the propertc owner shall be sufficient.
36616. "Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit,
other than an owner.
Prior Law
36617. This part provides an alternative method of financing certain improvements and activdties.
The pro~zsions of this part shall not affect or limit any other provisions of law authorizing ox
pro«ding for the furnishing of improvements or activities ox the raising of revenue for these
purposes. Every improvement azea established pursuant to the Pazking and Business Improvement
Area Law of 1989 (Part 6 (commencing c~zth Section 36500) of this division) is valid and effective
and is unaffected by this part.
Establishment
36620. A propem~ and business improvement distract may be established as provided in this
chapter.
36620.5. A county may not form a distract a-ithin the territorial jurisdiction of a city without the
consent of the cit3~ council of that city. A city may not form a district within the unincorporated
territorc of a county without the consent of the board of supervisors of that county. A city may not
form a district within the territorial jurisdiction of another city without the consent of the city
council of the other city.
36621. (a) Upon the submission of a written petition, signed by the property or business owners in
the proposed district who will pay more than 50 percent of the assessments proposed to be levied,
the city council mac initiate proceedings to form a district by the adoption of a resolution eepressing
its intention to fozm a district. The amount of assessment attributable to property ox a business
owned by the same property or business owner that is in excess of 40 percent of the amount of all
Chula Vista Tourism Marketing District Management District Plan Page 13
18-18
assessments proposed to be levied, shall not be included in detem+ini.,g whether the petition is
signed by propem or business oa-ners who will pay more than 50 percent of the total amount of
assessments proposed to be levied. (b) The petition of propertc or business owners required under
subdi~dsion (a) shall include a summan of the management distract plan. That summary shall
include all of the following:
(1) A map showing the boundaries of the distract.
(2) Information specifying where the complete management distract plan can be obtained.
(3) Information specifying that the complete management district plan shall be famished upon
request. (c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed activities and improvements, the amount of the proposed
assessment, a statement as to whether the assessment will be levied on property or businesses within
the district, a statement as to whether bonds will be issued, and a description of the exterior
boundaries of the proposed district. The descriptions and statements do not need to be detailed and
shall be sufficient if they enable an owner to generally identify the nature and extent of the
improvements and activities and the location and extent of the proposed district.
(2) A time and place for a public hearing on the establishment of the property and business
improvement district and the levy of assessments, which shall be consistent with the requirements of
Section 366_3.
36622. The management distract plan shall contain all of the following:
(a) A map of the district in sufficient detail to locate each parcel of property and, if businesses aze to
be assessed, each business within the district.
(b) The name of the proposed disvict.
(c) A description of the boundaries of the district, including the boundaries of benefit zones,
proposed fox establishment or extension in a manner sufficient to identify the affected lands and
businesses included. The boundaries of a proposed property assessment district shall not overlap
with the boundaries of another existing property assessment district created pursuant to this part.
This part does not prohibit the boundaries of a distract created pursuant to this pazt to overlap with
other assessment districts established pursuant to other provisions of law, including, but not limited
to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section
36500)). This part does not prohibit the boundaries of a business assessment district created
pursuant to this part to overlap with another business assessment district created pursuant to this
part. This part does not prohibit the boundaries of a business assessment distract created pursuant to
this part to overlap with a propem assessment distract created pursuant to this part.
(d) The improvements and activities proposed for each yeaz of operation of the distract and the
maximum cost thereof.
(e) The total annual amount proposed to be expended for improvements, maintenance and
operations, and debt serrice in each yeaz of operation of the distract.
(~ The proposed source or sources of financing, including the proposed method and basis of
lecgirtg the assessment in sufficient detail to allow each property or business owner to calculate the
amount of the assessment to be levied against his or her property or business. The plan also shall
state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of yeazs in which assessments will be levied. In a new district, the maximum
number of years shall be five. upon renewal, a distract shall have a term not to exceed 10 yeazs.
Notcznthstanding these limitations, a distract created pursuant to this part to finance capital
improvements with bonds may ley-y~ assessments until the maximum maturity of the bonds. The
management district plan mae set forth specific increases in assessments for each pear of operation
of the district.
Chula Vista Tourism Marketing District Management District Plan Page 14
18-19
(i) The proposed time for implementation and completion of the management distract plan.
(j) Any proposed rules and regulations to be applicable to the district.
(k) A list of the properties or businesses to be assessed, including the assessoi s parcel numbers for
properties to be assessed, and a statement of the method or methods by which the expenses of a
distract will be imposed upon benefited real property or businesses, in proportion to the benefit
received by the propem ox business, to defray the cost thereof, including operation and
maintenance. The plan may provide that all or any class or category of real property which is exempt
by law from real propert3~ taxation mac nevertheless be included within the boundaries of the district
but shall not be subject to assessment on real property.
(1) Any other item or matter required to be incorporated therein by the city council.
36623. (a) If a city council proposes to le«- a new or increased property assessment, the notice and
protest and hearing procedure shall comply with Section 53753 of the Government Code.
(b) If a city council proposes to levy a new or increased business assessment, the notice and protest
and hearing procedure shall comply with Section 54954.6 of the Government Code, except that
notice shall be mailed to the owners of the businesses proposed to be assessed. A protest map be
made orally or in writing by any interested person. Ecery written protest shall be filed with the Berk
at ox before the time fixed for the public hearing. The cin~ councIl may waive anc isegularaty in the
foun or content of any written protest. A written protest map be withdrawn in writing at any time
before the conclusion of the public heating. Each written protest shall contain a description of the
business in which the person subscribing the protest is interested sufficient to identify the business
and, if a person subscribing is not shown on the official records of the city- as the owner of the
business, the protest shall contain or be accompanied by written evidence that the person
subscribing is the oa*nu of the business. A written protest which does not comply with this section
shall not be counted in dete+**~;n;ng a majority protest. If written protests aze received from the
owners of businesses in the proposed district which will pay 50 percent or more of the assessments
proposed to be levied and protests aze not withdrawn so as to reduce the protests to less than 50
percent, no further proceedings to levy the proposed assessment against such businesses, as
contained in the resolution of intention, shall be taken fox a period of one yeaz from the date of the
finding of a majority protest by the cite council.
36624. At the conclusion of the public hearing to establish the district, the city councIl may adopt,
revise, change, reduce, or modify the proposed assessment ox the type or types of improvements
and activities to be funded with the revenues from the assessments.
Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the
city council map only make changes in, to, or from the boundaries of the proposed property and
business improvement distract that will exclude territory that will not benefit from the proposed
improvements or activities. An}- modifications, recisions, reductions, or changes to the proposed
assessment distract shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. (a) If the city council, following the public hearing, decides to establish the proposed
property and business improvement district, the city council shall adopt a resolution of formation
that shall contain all of the following:
(1) A brief description of the proposed activities and improvements, the amount of the proposed
assessment, a statement as to whether the assessment will be levied on property or businesses within
the district, a statement about whether bonds will be issued, and a description of the exterior
boundaries of the proposed distract. The descriptions and statements do not need to be detailed and
shall be sufficient if they enable an owner to generaIle identify the nature and extent of the
improvements and acti~dties and the location and extent of the proposed district.
Chula Vista Tonrism Marketing District Management District Plan Page 15
18-20
(2) The number, date of adoption, and tide of the resolution of intention.
(3}The time and place where the public hearing was held concerning the establishment of the
district.
(4) A deteunination regarding any protests received. The dtc shall not establish the district or levy
assessments if a majority protest was received.
(S) A statement that the properties or businesses in the district established by the resolution shall be
subject to any amendments to this part.
(6) A statement that the improvements and activities to be provided in the district will be funded by
the le~~- of the assessments. The revenue from the levy of assessments within a distract shall not be
used to pro~ride unprovements or activities outside the distract or for any purpose other than the
purposes specified in the resolution of intention, as modified by the city council at the hearing
conceming establishment of the district.
(7) A finding that the property or businesses within the azea of the property and business
improvement district will be benefited by the improvements and activities funded by the
assessments proposed to be leaned. (b) The adoption of the resolution of formation and recordation
of the notice and map pursuant to Section 36637 shall constitute the lev5• of an assessment in each
of the fiscal yeazs referred to in the management distract plan.
36626. If the city council, following the public hearing, desires to establish the proposed property
and business improvement district, and the city council has not made changes pursuant to Section
36624, or has made changes that do not substantially change the proposed assessment, the city
council shall adopt a resolution establishing the distract. The resolution shall contain all of the
information specified in paragraphs (1) to (8), inclusive, of subdivision (b) of
Section 36625, but need not contain information about the preliminarc resolution if none has been
adopted.
36627. Folloa°ing adoption of the resolution establishing the distract pursuant to Section 36625 or
36626, the clerk of the citj- shall record a notice and an assessment diagram pursuant to Section
3114. If the assessment is levied on businesses, the test of the recorded notice shall be modified to
reflect that the assessment will be levied on businesses, or specified categories of businesses, within
the azea of the distract. No othu provision of Division 4.5 (commencing with Section 3100) applies
to an assessment district created pursuant to this part.
36628. The city council man establish one or more separate benefit zones within the district based
upon the degree of benefit derived from the improvements or activities to be pro«ded anthin the
benefit zone and may impose a different assessment within each benefit zone.
If the assessment is to be levied on businesses, the city council may also define categories of
businesses based upon the degree of benefit that each will derive from the improvements or
activities to be pro~nded within the district and may impose a different assessment or rate of
assessment on each category of business, ox on each category of business within each zone.
36628.5. The city council mac levy assessments on businesses or on property owners, or a
combination of the two, pursuant to this part. The city council shall structure the assessments in
whatever manner if determines corresponds with the distribution of benefits from the proposed
improvements and activities.
36629. All provisions of this part applicable to the establishment, modification, ox disestablishment
of a property and business improvement district apply to the establishment, modification, or
disestablishment of benefit zones or categories of business. The cl~, council shall, to establish,
Chula Vista Tourism Marketing District Management District Plan Page 16
18-21
modify, or disestablish a benefit zone or category of business, follow the procedure to establish,
modify, or disestablish a parking and business improvement azea.
36630. If a property and business improvement district expires due to the time limit set pursuant to
subdivision (h) of Section 36622, a new management distract plan map be created and a new distract
established pursuant to this part.
Assessments
36631. The collection of the assessments levied pursuant to this pazt shall be made at the time and
in the manner set forth by the city council in the resolution establishing the management district
plan described in Section 36622. Assessments levied on real property may be collected at the same
tune and in the same manner as fox the ad valorem propem tax, and mad provide for the same lien
priority and penalties fox delinquent payment. All delinquent payments for assessments levied
pursuant to this part shall be chazged interest and penalties.
36632. (a) The assessments levied on real propert~~ pursuant to this part shall be levied on the basis
of the estimated benefit to the real property within the property and business improvement district.
The uty council may classify properties for purposes of dete***>;n+ng the benefit to property of the
improvements and activities provided pursuant to this part. (b) Assessments levied on businesses
pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the
property and business improvement district. The city council may classify businesses for purposes
of deter*nin;ng the benefit to the businesses of the improvements and activities provided pursuant
to this part. (c) Properties zoned solely for residential use, or that are zoned for agricultural use, aze
conclusively presumed not to benefit from the improvements and service funded through these
assessments, and shall not be subject to any assessment pursuant to this part.
36633. The validity of an assessment levied under this part shall not be contested in any action or
proceeding unless the action or proceeding is commenced within 30 days after the resolution lev ;ving
the assessment is adopted pursuant to Section 36626. Anv appeal from a final judgment in an action
or proceeding shall be perfected within 30 days after the entry of judgment.
36634. The cih~ council may execute baseline service contracts that would establish levels of city
services that would continue after a property and business unprovement district has been formed.
36635. The owners' association may, at any time, request that the city council modify the ..
management district plan. Any modification of the management district plan shall be made
pursuant to this chapter.
36636. (a) Upon the written request of the owners' association, the city council may modify the
management district plan afrer conducting one public hearing on the proposed modifications. The
city council may modify the improvements and activities to be funded with the revenue derived
from the levy of the assessments by adopting a resolution deter*n;.,;.,g to make the modifications
after holding a public hearing on the proposed modifications. If the modification includes the levy
of a new or increased assessment, the city council shall comply with Section 36623. Notice of all
other public meetings and public hearings pursuant to this section shall comply with both of the
following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city
once at least seven days before the public meeting.
Chula Vista Tourism Marketing District Managemeut District Plan Page 17
18-22
(2) A complete copy of the resolution of intention shall be mailed be first class mail, at least 10 days
before the public meeting, to each business owner or property owner affected by the proposed
modification. (b) The city council shall adopt a resolution of intention which states the proposed
modification poor to the public heating required by this section. The public hearing shall be held
not more than 90 days after the adoption of the resolution of intention.
36657. Any subsequent modification of the resolution shall be reflected in subsequent notices and
maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent
with the provisions of Section 36627.
Financing
36640. (a) The city council may, by resolution, determine and declare that bonds shall be issued to
finance the estimated cost of some or all of the proposed improvements described in the resolution
of formation adopted pursuant to Section 3662.7, $ the resolution of formation adopted pursuant to
that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division
10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of
1985 (_Ardde 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the
Government Code). Either act, as the case may be, shall govern the proceedings relating to the
issuance of bonds, although proceedings under the Bond Act of 1915 maybe modified by the cit<~
council as necessary to accommodate assessments levied upon business pursuant to this part. (b)
The resolution adopted pursuant to subdivision (a) shall generally describe the proposed
improvements specified in the resolution of fosnation adopted pursuant to Section 36625, set forth
the estimated cost of those improvements, specify the number of annual installments and the fiscal
yeazs during which they aze to be collected. The amount of debt service to retire the bonds shall not
exceed the amount of revenue estimated to be raised from assessments over 30 yeazs. (c)
Notwithstanding any other provision of this part, assessments leaned to pay the pnncipat and interest
on any bond issued pursuant to this section shall not be reduced or terminated if doing so would
interfere with the timely retirement of the debt.
Governance
36650. (a) The owners' association shall cause to be prepazed a report for each fiscal year, except
the first year, for which assessments are to be le~zed and collected to pay the costs of the
improvements and activities described in the report. The owners' association`s fast report shall be
due after the first yeaz of operation of the district. The report may propose changes, including, but
not limited to, the boundaries of the propem and business improvement district or any benefit
zones within the district, the basis and method of levying the assessments, and any changes in the
classification of pxopert}', including any categories of business, if a classification is used. (b) The
report shall be filed with the clerk and shall refer to the property and business improvement distract
by name, specify the fiscal year to which the report applies, and, arith respect to that fiscal yeaz, shall
contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement distract ox in
any benefit zones on classification of property or businesses within the district.
(2) The improvements and activities to be provided for that fiscal veaz.
(3) An estimate of the cost of providing the vnpxovements and the activities for that fiscal yeaz.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or
business owner, as appropriate, to estimate the amount of the assessment to be levied against his or
her property or business for that fiscal yeaz.
Chula Vista Tourism Marketing District Management District Plan Page 18
18-23
(5) The amount of any surplus or deficit revenues to be carved over from a previous fiscal yeaz.
(6) The amount of any contributions to be made from sources other than assessments levied
pursuant to this part. (c) The city council may approve. the report as filed by the owners' association
or may modify any particular contained in the report and approve it as modified. Anc modification
shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in
the basis and method of levying assessments that would impair an authorized or executed contract
to be paid from the revenues derived from the levy of assessments, including any commitment to
pay principal and interest on any bonds issued on behalf of the distract.
36651. The management district plan may, but is not requited to, state that an owners' association
will provide the improvements or activities described in the management district plan. If the
management district plan designates an owners' association, the city shall contract with the
designated nonprofit corporation to provide serrices.
Renewal
36660. (a) Any district previously established whose term has expired, may be renewed by following
the procedures for establishment as provided in this chapter. (b) upon renewal, any remaining
revenues derived from the levy of assessments, or any revenues derived from the sale of assets
acquired with the revenues, shall be transferred to the renewed district. If the renewed distract
includes additional pazcels or businesses not included in the prior district, the remaining revenues
shall be spent to benefit only the pazcels or businesses in the prior distract. If the renewed distract
does not include parcels or businesses included in the poor distract, the remaining revenues
attributable to these pazcels shall be refunded to the owners of these parcels or businesses. (c) Upon
renewal, a district shall have a term not to exceed 10 yeazs, or, if the distract is authorized to issue
bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries,
assessments, improvements, or activities of a renewed district be the same as the original or poor
district.
Disestablisbment
36670. (a) Any district established or extended pursuant to the provisions of this pan, where there is
no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district,
may be disestablished by resolution by the dty council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a s-iolation of
law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assesses
may request disestablishment of the district. The first such period shall begin one year after the date
of establishment of the district and shall continue for 30 days. The next such 30-day period shall
begin two yeazs after the date of the establishment of the district. Each successive yeaz of operation
of the distract shall have such a 30-day period. Upon the written petition of the owners of real
property ox of businesses in the area who pay 50 percent or more of the assessments levied, the city
coundl shall pass a resolution of intention to disestablish the distract The city council shall notice a
hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish
the district prior to the public hearing required by this section. The resolution shall state the reason
for the disestablishment, shall state the time and place of the public hearing, and shall contain a
proposal to dispose of any assets acquired with the revenues of the assessments levied within the
property and business improvement district. The notice of the hearing on disestablishment required
by this section shall be given by mail to the property owner of each pazcel or to the owner of each
Chula Vista Tourism Marketing District Management District Plan Page 19
18-24
business subject to assessment in the district, as appropriate. The city shall conduct the public
hearing not less than 30 days after mailing the notice to the property or business owners. The public
hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. (a) Upon the disestablishment of a distract, any remaining revenues, after all outstanding
debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with
the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the
property or businesses then located and operating within the district in which assessments were
levied by applying the same method and basis that was used to calculate the assessments levied in
the fiscal yeaz in which the district is disestablished. All outstanding assessment revenue collected
afrex disestablishment shall be spent on improvements and activities specified in the management
distract plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the
method and basis that was used to calculate the assessments levied in the immediate poor fiscal yeaz
shall be used to calculate the amount of any refund.
Chula Vista Tourism Marketing District Management District Plan Page 20
18-25
APPENDIX 2 -LODGING BUSINESSES TO BE ASSESSED WITHIN THE
CVTMD:
Best Western Chula Vista La Quinta Inn Hazborview
Inn 150 Bonita Road 1089 Broadway
946 Broadway Chula Vista, CA 91910 Chula Vista, CA 91910
Chula Vista, CA 91911 (619) 691-1211 (619) 422-2967
(619)691-6868
Ramada Inn Highway Inn
Best Western South Bay 91 Bonita Road 70 Broadway
Inn Chula Vista, CA 91910 Chula Vista; CA 91910
710 E Street (619) 425-9999 (619) 691-8118
Chula Vista, CA 91910
(619) 420-5183 Travel Inn Mote16
394 Broadway 745 E Street
Big 7 Motel Chula Vista, CA 91910 Chula Vista, CA 91910
333 Broadway (619) 420-6600 (619) 422-4200
Chula Vista, CA 91910
(619) 422-9278 Avon Palomaz Inn
99 Broadway 801 Palomar Street
Days Inn Chula Vista, CA 91910 Chula Vista, CA 91910
699 E Street (619) 422-6002 (619) 423-9170
Chula Vista, CA 91410
(619) 585-1999 Bay Cities Motel Palomaz Motel
846 Broadway 1160 Walnut Avenue
El Primero Botique Hotel Chula Vista, CA 91911 Chula Vista, CA 91911
416 Third Avenue (619) 420-2951 (619) 575-2944
Chula Vista, CA 91910
(619) 425-4486 Comfort Inn & Suites Riviera Motel
632 E Street 372 Broadway
Chula Vista, CA 91910 Chula Vista, CA 91910
Good Nite Inn (619) 476-8635 (619) 422-1987
225 Bay Boulevazd
Chula Vista, CA 91910 Early California Travel Inn & Suites
(619) 425-8200 692 H Street 235 Woodlawn Avenue
Chula Vista, CA 91910 Chula Vista, CA 91910
Holiday Inn Express (619) 425-3862 (619) 427-9170
4450 Main Street
Chula Vista, CA 91911 Farmhouse Motel Vagabond Inn
(619) 422-2600 523 Amita Street 230 Broadway
Chula Vista, CA 91910 Chula Vista, CA 91910
(619)422-5568 (619)422-8305
Chula Vista Tourism Marketing District Management District Plan Page 21
18-26
ATTACNt4~,Er~17 Z
PETITION TO THI CITY OF CHT~Zy~ ~ZST
TO CRE~Z'E ~ TOURISyI vL4RIiETL\'G DISTRICT
We petition you to il-utiaie special assessment proceecun~s to create a Tourisn Mzrbeing
Dist-ict 1 i D) in accordznce a~ivn the Propery and Business ?mprove~ent D15u ct Law
of 1°9~, Sueets and iii=hwags Code Section =6600 ec szq, for ~e punose of
underta.'ting and inplernenting the TNID as described in the attached s•~nar,J of the
~lanasement District Plan attached hereto zs Di;;sibit A.
Lodains Establishment Business Owner
Owner Representative/Ow3er Nave ~pn.~ted)
Owner/Renresenttive Si=-;a~e Date
18-27
Exhibit A
Summary of the Management District P4an
T'ne Management District Plan provides for the provision of sales promotions and market;.as
pro~ansror the Chula Vis*a area, and to pay for capitol ir~=rastructure west of Ni_shw-av j and
w~thia the Eastern Urban Center. T"ne Chula Vista Tourism ~izrketng Dist-ict (CVT~D) shall
be established for j years and w11_I Ilse approximately $6j0,000 per year in assessments. The
assessmenu used to pay bond debt shalt have 2 term of 30 years.
The boundaries of the C'v~D will be the city 1imiU of C'nula Vista. The C'vI'vID trill only
incl-sde hotels zrd ,motels.. `Vithin the boundaries of the CVTtiD there shall be three zones.
Zone 1 shall include the area of Chula Vista east of Interstate j with the exception of the Eastern
Urban Center. Zone ? steal! include all hotels and motels west of Iatersrate j. Zone 3 shall
include all hotels and motels in the Eastern Urban Center. T'ne Eastern Urban Center is bondd by
Sate Route i ? j to the weS, Bich Road to the noru4, E3sda'_te Pzrk~vay to the east and the ~ ~rure
erensron of Hunte Parkway to the south. Bonds shall be issued i= Zone 2 and Zone 3. A
detailed man is anached.
$e~zces the CV _! ~ vv-ill orov-ide include `he operation of the Chulz Vista Visitors Information
Center, sales promotion and marketing prog~ms desired to mzrket Chula Vista as a tourist,
meeting and event desti-*~*ion. In addition, assessment dot=-s w~?i pzy for i,rsuucrse was o_`
I~1Phvvav j and wzthia the Easter Urban Center.
?~~ual assessment rates are 2.j% of moss short term (stays less than 31 days) room rental
revenue on lodging businesses. Ia Zone 1, the monies collected from the special assessmer_t w11
go to the Owners' Association. L_ Zone 2 and Zone 3; 2.0% of the 2S% collected will go
towards capital imnrovemeats, and the remaining O.j°io will go to Owners' Association. At the
Council's discretion, t :is ?°i° in assessments collected L Zones ?and 3 may be used to repay a
capital inf-astucture bond if Council chooses to issue bonds. Until and unless bonds are issued
in Zones 2 and 3, an•% 4tnds collected in these zones will go to the CVCG zad iced in the same
way as monies collected in Zone 1. Lod~.ng business stays of 01 or more consecu*sve days
shill not be zsssessed. 3zsed on the benefit received, s`Ly=_ zt RV par`_zs and campgrounds wi-
the Boundaries of *he CVTtiD shall not be assessed.
The proposed Dis~ct CVTIVD shall have z fire-yeaz life. 1 ne zssessments used to pzy bond
debt wall have a term of .0 year. The CVTI~D zssessmen*. will be implemented be~~n;ng
lone 1, 2009. Once per yeaz Caere is a 30 day period in which owners payin; more than j0% of
the assessment may erotes and ternunate the por7oa of the disc-ict that is not used to repay
bonds.
18-28
~ complete ti4an:sement Dist-ict Ptan can be obtained by conrac'~ing the Chuiz Visa Chamber
of Commerce er-ue Chula Vista Conven*ian ~ Visitor Beau a: The address or ohone number
below. ~, complete Ylana;ement D~s~ct Plan sha11_ be isrr~ished upon request" i* you ha"re zny
ques'~ions niease contact tts zi:
Chulz Vista Chamber of Commeroe Chula Vistz Convention aad Visitors Bureae
233 4th avenue 7~0 r Steet
Chula Vise CA ° 1910 Chula Visz, C~ 91910
(~1S)-2G-o60: {6191'=2G-5oC3
lisz!cv.chuiz:istachzmber.er_ Lisa~~chulavistzchacuber.or;
18-29
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RESOLUTION NO. 2009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING THE RESULTS OF THE
MAJORITY PROTEST PROCEEDINGS AND ESTABLISHING
THE CHULA VISTA TOURISM MARKETING DISTRICT
(CVTMD) AND DIRECTING THE CITY CLERK TO TAKE
ALL NECESSARY ACTIONS TO LEVY THE ASSESSMENTS
WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and
Highways Code §36600 et. seq.) authorizes cities to establish property and business
improvement districts upon petition by a weighted majority of the lodging business owners
located within the boundaries of the district; and
WHEREAS, a majority of the lodging business owners subject to assessment, as
weighted according to the amount of the assessment to be paid by the petitioner, within the
boundaries of the Chula Vista Tourism and Mazketing District (CVTMD) have petitioned the
City Council to establish the CVTMD; and
WHEREAS, the lodging business owners who signed the petitions will pay more than
fifty percent (50%) of the proposed assessment; and
WHEREAS, included with the petitions was a management district plan summary that
describes the proposed assessment to be levied on lodging businesses within the CVTMD to pay
for operation of the Chula Vista Visitor's Information Center, sales promotion and marketing
activities, and those other improvements set forth in Streets and Highways Code §36610; and
WHEREAS, the lodging businesses within the CVTMD will be benefited by the
activities and improvements set forth in the management district plan; and
WHEREAS, at 6:00 p.m. on May 12, 2009, at 276 Fourth Avenue, Chula Vista,
Califomia 91910, the City Council adopted a Resolution of Intention, Resolution No. 2009-115.
WHEREAS, the public meeting and public hearing to consider the formation of the
CVTMD have been properly noticed in accordance with Streets and Highways Code §36623;
and
WHEREAS, at 4:00 p.m. on May 26, 2009, at 276 Fourth Avenue, Chula Vista,
Califomia 91910, the City Council held a public meeting regarding the establishment of the
CVTMD, and the City Council heazd and received objections and protests to the establishment of
the CVTMD and the levy of the proposed assessment; and
WHEREAS, at 6:00 p.m. on July 14, 2009, at 276 Fourth Avenue, Chula Vista,
California 91910, the City Council held a public hearing regarding the establishment of the
CVTMD, and the City Council heard and received all objections and protests to the
establishment of the CVTMD and the levy of the proposed assessment; and
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WHEREAS, the City Clerk has determined that there was no majority protest; and
WHEREAS, a majority protest is defined as written protests received from owners of
businesses in the proposed azea which would pay fifty percent (50%) or more of the assessments
proposed to be levied; and
WHEREAS, protests are weighted based on the assessment proposed to be levied on each
lodging business.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby:
Establish the Chula Vista Tourism Marketing District for a five (5) year term
wherein:
a. The assessments levied for the CVTMD shall be applied towazds sales promotion
and marketing programs to market Chula Vista as a tourist, meeting and event destination, and
other improvements as set forth in Streets and Highways Code §36610.
b. The revenue from the levy of the assessments on lodging businesses within the
CVTMD may not be used to provide for activities or improvements outside the CVTMD or for
any purpose other than those specified herein and in the Resolution of Intention.
c. Assessments levied on lodging businesses pursuant to this Resolution shall be
levied on the basis of benefit. Because the services provided aze intended to increase room
rentals, an assessment based on room rentals is the best measure of benefit.
d. The assessments for the entire District will total approximately $650,000 in year
one.
e. The activities and improvements set forth will be funded by the levy of an
assessment of lodging businesses within the CVTMD as described in the Management District
Plan that is on file with the City Clerk.
£ Bonds may be issued to fund the CVTMD.
g. The boundaries of the CVTMD shall be the boundaries of the City of Chula Vista.
Please see the attached map, incorporated herein as Exhibit A.
h. The. assessments shall be used for the purposes set forth above and any funds
remaining at the end of any year may be used in subsequent yeazs in which the CVTMD
assessment is levied as long as they aze used consistent with the requirements set forth herein.
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i. The assessments to fund the activities and improvements for the CVTMD will be
collected at the same time and in the same manner as aze transient occupancy taxes, and in
accordance with Streets and Highways Code §36631.
j. The Chula Vista Convention and Visitors Bureau (CVCVB) shall be the Owners
Association pursuant to Streets and Highways Code §36614.5.
k. The CVTMD, pursuant to Streets and Highways Code §36650, shall cause to be
prepared a report for each fiscal year, except the first yeaz, for which assessments aze to be levied
and collected to pay the costs of the improvement and activities described in the report. The first
report shall be due after the first yeaz of operation of the district.
1. Subjects the CVTMD established pursuant to this resolution to any amendments
to the Property and Business PBID Law of 1994 (California Streets and Highways Code §36600
et. seq.).
BE IT FURTHER RESOLVED that the Council of the City of Chula Vista does hereby:
1. Direct the City Clerk, or his or her designee, to take all necessary actions to
complete the establishment of the CVTMD and to levy the assessments.
2. Direct the City Clerk to record in the San Diego County Recorder's Office a
notice and assessment diagram, as required by Streets and Highways Code §36627. The text of
the recorded notice shall state that the assessment is levied only against lodging businesses
within the area of the CVTMD.
Presented by:
Gazy Halbert, P.E., AICP
Deputy City Manager/ Development
Services Director
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Approved as to form by: