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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Adopt Resolution No. 2024-13 declaring the City's Intention to Modify the Management District Plan for the Huntington Beach Tourism Business Improvement District, conduct a Public Meeting on May 7, 2024, and set a Public Hearing date of June 4, 2024
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Statement of Issue:
In 2014, the Huntington Beach Tourism Business Improvement District (HBTBID) was formed pursuant to the California Property and Business Improvement District Law of 1994, which authorized special benefit assessment districts to raise funds within a specific geographic area.
The purpose of the HBTBID is to increase overnight lodging sales with targeted marketing and promotions. Funding for the marketing programs and activities of the HBTBID are derived from assessments collected from lodging businesses operating within the City of Huntington Beach (City) boundaries. The current assessment rate is four percent (4%) of gross short-term lodging revenue from room rentals under 30 days.
Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, serves as the HBTBID's Owners' Association and is responsible for implementing the programs identified in the Management District Plan (MDP). VHB is currently seeking to modify the MDP to increase the assessment rate from four percent (4%) to six percent (6%) of gross short-term lodging revenue. VHB requests that the City Council adopt a Resolution of Intention scheduling 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 revenu...
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