REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Kriss Casanova, Economic Development Manager
Subject:
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Receive Public Comment Pursuant to CA Government Code - GOV ? 54954.6 Regarding the Modification of the Management District Plan for the Huntington Beach Tourism Business Improvement District
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Statement of Issue:
On April 16, 2024, the City Council adopted Resolution No. 2024-13 declaring its intention to modify the Huntington Beach Tourism Business Improvement District (HBTBID) Management District Plan (MDP) to increase the HBTBID assessment rate from four percent (4%) to six percent (6%) of gross short-term lodging revenue. Additionally, Resolution No. 2024-13 scheduled a public meeting on May 7, 2024, to receive comments on the proposed modification, and a public hearing on June 4, 2024, to consider approval of the modification.
Financial Impact:
The proposed increase in the HBTBID assessment rate from 4% to 6% is estimated to generate an additional $3 million in revenue annually recorded in account 70900709.40500 that will be passed through to Visit Huntington Beach on behalf of the HBTBID, for a total of approximately $10M in annual pass-through revenue.
Recommended Action:
recommendation
Receive and file public comment related to the proposed modification of the Management District Plan for the Huntington Beach Tourism Business Improvement District per adopted Resolution No. 2024-13.
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Alternative Action(s):
Do not continue proceedings to modify the HBTBID.
Analysis:
Background
Promoting Huntington Beach as a desirable tourism destination and increasing awareness of available lodging options is a component of the City's continued economic vitality. In 2014, the original Hotel/Motel Business Improvement District was disbanded, and the HBTBID was formed purs...
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