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Home My WebLink About15-009 CC ResolutionRESOLUTION NO. 15 -09 ' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ESTABLISHING THE VISIT TEMECULA VALLEY TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, the Property and Business Improvement District Law of 1994, California Streets and Highways Code Section 36600 et seq. (the "1994 Act) authorizes cities to establish business improvement districts for the purpose of promoting tourism; and WHEREAS, Visit Temecula Valley (formerly known as the "Temecula Valley Convention & Visitors Bureau ") (the "VTV ") is interested in the establishment of the Visit Temecula Valley Tourism Business Improvement District ( "VTVTBID ") pursuant to the 1994 Act and the levy of assessments on lodging businesses, which include hotels as defined in Temecula Municipal Code Section 3.20.020, within the VTVTBID ( "Lodging Businesses "); and WHEREAS, the owners of such lodging businesses have requested the Temecula City Council to initiate proceedings pursuant to the 1994 Act to establish the VTVTBID pursuant to a written petition signed by the owners of lodging businesses within the proposed VTVTBID which will pay more than 50% of the assessments proposed to be levied; and WHEREAS, the VTV and the City of Temecula desire to have the VTV manage the activities provided by the proposed VTVTBID; and WHEREAS, the VTV drafted a management district plan (the "Management District Plan ") containing all the information required by Section 36622 of the 1994 Act and filed such Management District Plan with the City Clerk of the City of Temecula; and WHEREAS, pursuant to the 1994 Act, on December 9, 2014, the City Council adopted Resolution No. 14 -75, entitled, "A Resolution of the City Council of the City of Temecula Declaring Its Intention to Establish the 1994 Act Temecula Valley Tourism Business Improvement District and Fixing the Time and Place of a Public Hearing Thereon and Giving Notice Thereof' (the "Resolution of Intention "). The Resolution of Intention, among other things, approved the Management District Plan on file in the office of the City Clerk; and WHEREAS, the City caused notice of a public meeting and public hearing concerning the proposed establishment of the VTVTBID and the proposed levy of assessments within the VTVTBID to be duly mailed, as required by law; and I WHEREAS, a public meeting concerning the proposed establishment of the VTVTBID and the proposed levy of assessments within the VTVTBID was held on Resos 15 -09 1 ' January 27, 2015, at the hour of 7:00 p.m. at the City of Temecula, City Council Chambers, 41000 Main Street, Temecula, California; and WHEREAS, a public hearing concerning the proposed establishment of the VTVTBID and the proposed levy of assessments within the VTVTBID was held on February 10, 2015, at the hour of 7:00 p.m. in the at the City of Temecula, City Council Chambers, 41000 Main Street, Temecula, California; and WHEREAS, at the public hearing, the testimony of all interested persons for or against the establishment of the VTVTBID and the levy of assessments within the VTVTBID was heard and considered, and a full, fair and complete hearing was held; and WHEREAS, a majority protest does not exist as defined by Section 36623 of the 1994 Act; THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HERERBY RESOLVE AS FOLLOWS: Section 1. Recitals. The recitals set forth herein are true and correct. Section 2. Establishment of District. Pursuant to the 1994 Act, a business improvement district designated as the Visit Temecula Valley Tourism Business Improvement District (the "VTVTBID ") is established. Section 3. Description of District. The exterior boundaries of the VTVTBID are the exterior boundaries of the City of Temecula, as shown on the map attached hereto as Exhibit A and incorporated herein by such attachment. Section 4. Assessment. Except where funds are otherwise available, the City shall annually levy an assessment on all lodging businesses within the VTVTBID boundaries based upon 4% of the rent charged by the operator per occupied room per night to pay for activities within the VTVTBID (the "Asssessment"). Extended stays, defined as stays of more than 30 consecutive calendar days, and those exempt persons as defined in Temecula Municipal Code Section 3.20.040 will be exempt from the assessment. New lodging businesses established within the boundaries of the VTVTBID after the beginning of any fiscal year will not be exempt from the levy of assessment for that fiscal year. Assessments pursuant to the VTVTBID shall not be included in gross room rental revenue for purpose of determining the amount of the transient occupancy tax imposed pursuant to Chapter 3.20 of the Temecula Municipal Code. Section 5. Duration of Assessment. The annual assessment described in Section 4 may be levied for a term of five fiscal years, commencing with the fiscal year beginning on March 1, 2015 and ending on February 29, 2020, after which term the City ' may renew the assessment pursuant to Section 36600 of the 1994 Act. For purposes of levying and collecting assessments within the VTVTBID, a fiscal year shall commence on March 1st and end on the following February 28th (or 29th); provided the City Council Resos 15 -09 2 may, by resolution, designate the fiscal year as July 15' to June 301h of the following ' year, or any other fiscal year, subject to all applicable requirements of the 1994 Act. The amount of the annual assessment proposed to be levied in year one totals approximately $1,402,736.00. This amount is expected to fluctuate over the remaining four years of the five -year term of the VTVTBID in accordance with occupancy rates and rents charged by the operators of the lodging businesses within the VTVTBID, but the amount is not anticipated to be significantly different each year. Section 6. Collection of Assessments. The City will collect the assessments from lodging businesses within the boundaries of the VTVTBID in monthly installments or such other installments as determined pursuant to resolution of the City Council. Section 7. Activities. The proposed activities for the VTVTBID include tourism promotion and marketing programs that specifically and specially benefit the lodging businesses within the VTVTBID by increasing tourism and marketing the Temecula Valley as a tourism destination. The activities will be funded from the assessments. A portion of the assessments each year will be used to pay for administrative expenses of the City. Section 8. No Bonds. The City shall not issue bonds in connection with the VTVTBID. Section 9, Fund. There is created a special fund designated as the VTVTBID ' Fund into which all revenue derived from the assessments shall be placed. The moneys in such fund, except for the moneys to pay administrative expensses, will be distributed to the VTV and shall be used only for the purposes specified in this resolution. The revenue from the levy of the assessments shall not be used to provide improvements or activities outside the VTVTBID or for any purpose other than the purposes specified in this resolution. Funds remaining at the end of any year may be used in subsequent years in which assessments are levied as long as they are used consistent with the requirements of this resolution. Section 10. Benefit. The City Council hereby finds that the lodging businesses within the VTVTBID will be specifically and specially benefited by the activities funded by the assessments. Section 11. Amendments. Lodging businesses within the VTVTBID established by this resolution shall be subject to any amendments to the 1994 Act. Section 12. Levy of Assessment. The adoption of this resolution constitutes the levy of an assessment in each of the fiscal years referred to herein and in the Management District Plan. Section 13. Certification. The City Clerk shall certify to the adoption of this resolution. Resos 15 -09 3 i_. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 10th day of February, 2015. ATTEST: Randi Johl Ison, JD, MMC City Clerk [SEAL] Resos 15 -09 ' STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl - Olson, JD, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 15 -09 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 10th day of February, 2015, by the following vote: I AYES: 5 COUNCIL MEMBERS NOES: 0 COUNCIL MEMBERS: ABSTAIN: 0 COUNCIL MEMBERS: ABSENT: 0 COUNCIL MEMBERS: Resos 15 -09 5 Edwards, Naggar, Rahn, Washington, Comerchero 1►reLTa None None Randi Johl - Olson, JD, MMC City Clerk 0 EXHIBIT A MAP OF BOUNDARIES OF CITY/VTVTBID Exhibit A Mm ri ✓.ter —ry r '♦,'��,i�` •err r " !+#Imo.` ii