REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Dahle Bulosan, Chief Financial Officer
Subject:
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Request for approval to establish a Payment Deferral Program for Tourism Business Improvement District (TBID) assessments collected by the City in Response to COVID-19 - Resolution No. 2020-27
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Statement of Issue:
In response to the economic effects of the COVID-19 pandemic, staff is requesting approval to establish a payment deferral program for Tourism Business Improvement District (TBID) assessments covering the period of March 1, 2020, through June 30, 2020. Pursuant to the proposed program parameters, given the uncertain nature of the COVID-19 situation, the payment deferral period could be extended through September 30, 2020, unless changes are directed by the City Council.
Financial Impact:
Given the design of the proposed program, TBID revenues due to the City will still need to be paid in full by June 30, 2021. Of note, TBID revenues are passed through the City to Visit Huntington Beach (VisitHB). However, given the current fiscal challenges presented by the COVID-19 situation, the deferral program has been developed to provide support in a manner that does not relieve the obligation of hotels and motels to pay their requisite assessments.
Recommended Action:
recommendation
Adopt Resolution 2020-27, "A Resolution of the City Council of the City of Huntington Beach Establishing a City Policy Regarding the Deferral of Huntington Beach Tourism Business Improvement District Assessment in Response to COVID-19," related to the establishment of a TBID payment deferral program, which has been approved by the board of VisitHB.
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Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
On March 16, 2020, the Governor ordered the closure of all non-essential businesses in response to the COVID-19 pandemic. Th...
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