SR-11-13-2012-9A10 ®®
�Wm City of Its Council Report
Santa Monica
City Council Meeting: November 13, 2012
Agenda Item: '::71 — Vq
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Public Meeting on Formation of a Santa Monica Tourism Marketing District
Recommended Action
Staff recommends that the City Council hold a public meeting and receive comments
regarding the formation of the Santa Monica Tourism Marketing District ( SMTMD).
Executive Summary
On October 23, 2012, Council accepted petitions from qualified lodging businesses
representing 79.36 percent of the proposed assessments and adopted Resolution No.
10708 (CCS) declaring its intention to set a public hearing for tonight, in order to receive
testimony on the establishment of the SMTMD. The final hearing and Resolution of
Formation to levy the assessment will be scheduled for December 11, 2012. If there is a
majority written protest, the SMTMD may not be formed.
Background
The proposed SMTMD was initiated by the Santa Monica Convention and Visitors
Bureau (CVB) in conjunction with Santa Monica hotels for the purpose of providing a
self- assessment on qualifying hotels to generate additional revenues for tourism
promotion and marketing. The formation of a Tourism Marketing District requires
submittal of petitions from lodging businesses representing more than 50 percent of the
total annual assessment. On October 23, 2012, Council accepted petitions from
qualified lodging businesses representing 79.36 percent of the proposed assessments
and adopted a Resolution of Intention which set a public hearing at the November 13,
2012 City Council meeting.
Discussion
The major components of the proposed SMTMD are outlined in the Santa Monica
Tourism Marketing District Management District Plan and summarized in the
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October 23. 2012, staff report. A Notice of Public Hearing, scheduled for
November 13, 2012 was posted and mailed to all Santa Monica lodging business
owners who would be subject to the special assessment.
Next Steps
If there is not a majority of written protests, a final public hearing would be scheduled for
December 11, 2012, where a Resolution of Formation would be considered by Council.
If the SMTMD is formed, the collection of assessments is expected to begin on
January 1, 2013.
Also, on December 11, 2012, Council would be asked to amend and restate the existing
Services Agreement between the City and CVB to allow the CVB to manage the
SMTMD on behalf of the businesses.
Financial Impacts & Budget Actions
There is no fiscal impact related to the public hearing to receive testimony on the
establishment of the SMTMD.
Prepared by: Elana Buegoff, Sr. Development Analyst
Andy Agle, Director
Housing and Econo
Forwarded to Council:
Rod Gould
Development City Manager
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