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CITY COUNCIL AGENDA REPORT
City of Anaheim
CITY MANAGER’S OFFICE
DATE: NOVEMBER 18, 2025
FROM: CITY MANAGER’S OFFICE
SUBJECT: PUBLIC HEARING ON ORDINANCE AMENDING CHAPTER
2.14 (ANAHEIM TOURISM IMPROVEMENT DISTRICT
FORMATION CODE) OF THE ANAHEIM MUNICIPAL CODE,
AND RESOLUTION AMENDING THE ANAHEIM TOURISM
IMPROVEMENT DISTRICT OF 2010 MANAGEMENT PLAN
AND THE RESOLUTION OF FORMATION FOR THE ANAHEIM
TOURISM IMPROVEMENT DISTRICT
ATTACHMENT (Y/N): YES ITEM # 14
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, following a public hearing and public testimony, take the following actions:
1. Consider any protests submitted by Assessed Facilities within the current and proposed Anaheim Tourism Improvement District (ATID) boundary.
2. Following a tabulation by the City Clerk on whether the written protests received by Assessed Facilities included in the existing and proposed ATID boundaries and that are projected to pay fifty percent (50%) or more of the Assessments levied, determine whether the written protests constitute a majority. If so, the modifications would not be adopted and would be prevented from further consideration for a period of one year from the date of determination.
3. If the written protests do not constitute a majority:
a. By Resolution, adopt modifications to the Anaheim Tourism Improvement District of 2010 Management Plan relating to expanding boundaries; revising activities and improvements including adding housing related activities and improvements; changing allocation of assessment funds to provide funding for housing-related activities; establishing a Housing Committee; adding Vacation Ownership Resorts to businesses subject to the assessment and adopting a related modification to the Resolution of Formation; and
b. Waive reading and introduce an Ordinance amending specified sections of Chapter 2.14 of the Anaheim Municipal Code relating to the Anaheim Tourism Improvement District.
Public Hearing to Amend Chapter 2.14 (Anaheim Tourism Improvement District Formation Code) of the Anaheim Municipal Code, the ATID 2010 Management Plan and the ATID Resolution of Formation
November 18, 2025
DISCUSSION:
On July 27, 2010, the City Council adopted an enabling ordinance authorizing the formation of tourism improvement districts and the assessment on businesses within such districts. On September 14, 2010, the City Council established the Anaheim Tourism Improvement District for the promotion of local tourism and convention-related programs, as well as transportation improvements within the Anaheim Resort and Platinum Triangle areas within the ATID boundary.
As part of the formation of the ATID, the City Council approved the Anaheim Tourism Improvement District of 2010 Management Plan (2010 Management Plan). The 2010 Management Plan contains the components required by the municipal code, including but not limited to: (1) a map of the district, (2) the improvements and activities authorized for use of ATID funds and specifically those proposed for the first five years of operation, (3) rules and regulations applicable to the district including the assessment amount equal to two percent of daily rate charged per hotel or motel room, (4) the identification of the assessed hotel/motel businesses referred to as the Assessed Facilities, and (5) the governing structure of the management plan including the contracted entity for marketing and promotion (i.e. currently Visit Anaheim) and the Transportation Committee.
In 2024, Councilmember Kurtz requested staff bring forward an item for Council consideration to modernize the ATID governing documents and assign a portion of ATID revenues to support workforce housing initiatives for workers at ATID-assessed facilities. On August 12, 2025, Councilmember Kurtz reiterated this request and has been working with staff to prepare this item for consideration.
Councilmember Kurtz conducted various stakeholder meetings, including meetings with Assessed Facilities operators on June 26, 2025, and August 26, 2025.
At the September 23, 2025, City Council meeting, the City Council adopted Resolution No. 2025-088 declaring its intention to adopt modifications to the Anaheim Tourism Improvement District (ATID) and set the time and place for a public meeting and hearing on the ATID modifications. On October 28, 2025, the City Council held a public meeting to allow and receive public testimony regarding the ATID modifications at the City Council Chamber during its regularly scheduled meeting. The proposed modifications to the 2010 Management Plan (identified as the Amended and Restated Management Plan) and municipal code are summarized below, and provided in their entirety as attachments to this report:
ATID Assessment Revenue:
No change to the existing two percent (2%) assessment rate is proposed as part of this action. However, the allocation of ATID Assessment Revenue will be modified to allocate 9% of total ATID revenues to a new segregated fund titled “ATID Area Worker Housing Program” in the Anaheim Local Housing Trust Fund. Other allocations, including City Administration (1% of total ATID Revenues), Marketing and Promotion (75% of remaining ATID Revenues after allocating funds for the administrative costs and the ATID Worker Housing Program), and Transit and Transportation (25% of remaining ATID Revenues after allocating funds for the administrative costs and the ATID Worker Housing Program) are unchanged, as illustrated below.
Public Hearing to Amend Chapter 2.14 (Anaheim Tourism Improvement District Formation Code) of the Anaheim Municipal Code, the ATID 2010 Management Plan and the ATID Resolution of Formation
November 18, 2025
Category Percent
Allocation
Description
City Administration
of ATID
1% The City shall recover its costs of administering the ATID from ATID Assessment Revenue. This amount shall equal
one percent (1%) of the amount of the ATID Assessments
collected per year.
ATID Area
Workforce Housing
Programs
9% Commencing February 1, 2026, nine percent (9%) of ATID Assessment Revenue shall be allocated to the Anaheim
Housing Trust Fund for ATID Area Workforce Housing
Program activities, improvements, services and programs for Assessed Facility employees.
Marketing and
Promotion
75% of the
remaining
ATID
Revenues
Seventy-five percent (75%) of the remaining ATID
Assessment Revenue shall be dedicated to Marketing and
Promotion activities, improvements, services, and programs.
Transit and
Transportation
25% of the
remaining
ATID
Revenues
Twenty-five percent (25%) of the remaining ATID
Assessment Revenue shall be dedicated to activities,
improvements, services and programs to support transit and transportation improvements and activities.
The proposal also eliminates an existing exemption for Vacation Ownership Resort/timeshare units from the ATID Assessment. New Vacation Ownership Resort/timeshare units constructed or converted after adoption of the Amended and Restated Management Plan will be subject to ATID Assessment.
This provision does not apply to existing Vacation Ownership Resort/timeshare units. This modification will result in significant new ATID revenues as new Vacation Ownership Resort/timeshare units are developed in future years.
The proposal also eliminates a provision of the 2010 Management Plan that would change the revenue allocation from a 75/25 percentage split between marketing and transportation funds to a 70/30 percentage split upon completion of 800 new assessed rooms owned and/or managed by the largest single payer of ATID assessments. Removal of this clause provides predictable and consistent marketing revenues for the Contracting Entity.
Public Hearing to Amend Chapter 2.14 (Anaheim Tourism Improvement District Formation Code) of the Anaheim Municipal Code, the ATID 2010 Management Plan and the ATID Resolution of Formation
November 18, 2025
Workforce Housing
The proposed management plan establishes new ATID Area Workforce Housing initiatives, consistent with the Anaheim Local Housing Trust Fund Guidelines, to fund activities, improvements, services and programs available to Assessed Facility employees including:
First-Time Homeowners Program: Offers financial support for low- and moderate-income households (up to 150% of area median income) through a downpayment assistance loan to purchase their first home in Anaheim. Funds would be provided solely to assist qualified ATID area Assessed Facility employees.
Housing Stability Program: Provides one-time emergency assistance to prevent displacement, eviction, and homelessness of very low-income and low-income ATID area Assessed Facility employees at risk of eviction or homelessness.
Build More Homes Initiative: Funds the development and rehabilitation of workforce housing including affordable, rental and for-sale housing, to increase the city’s long-term supply. For these funds, the program would specifically fund housing for qualified ATID area Assessed Facility employees.
The Amended and Restated Management Plan also establishes a new 5-person Housing Committee consisting of one (1) representative appointed by the Anaheim City Manager, one (1) representative from the largest single contributor in the aggregate by brand to the ATID, and three (3) owners or operators of Assessed Facilities, including at least one (1) representing a small hotel of less than 300 rooms. The Housing Committee will approve the use of ATID Area Workforce Housing Program funds.
ATID Boundaries
The boundaries of the ATID will be amended to include The Viv Hotel, located at 1601 South Anaheim Boulevard, and potential new hotels along and near South Anaheim Boulevard from the I-5-Freeway to just north of the Ball Road intersection. A copy of the Amended District Boundary Map showing precise ATID boundaries is attached to the Amended and Restated Management Plan. A corresponding update to the street description of boundaries of the ATID and list of Assessed Facilities is also included as part of the Amended and Restated Management Plan.
Marketing and Promotion, and Transportation, Activities, Improvements, Services and Programs The Amended and Restated Management Plan includes additions and clarifications to Marketing and Promotion Activities, Improvements, Services and Programs that may be funded by ATID, including, but not limited to, underwriting special events, planning and development-related tools and studies, and placemaking and beautification of physical spaces. The plan also identifies additions and clarifications to Transportation Activities, Improvements, Services and Programs which may be funded by ATID, including, but not limited to, the “east/west connector”, emerging mobility solutions (such as micro- transit systems), and transportation to and from Assessed Facilities within the ATID Boundary to visitor-serving destinations.
Public Hearing to Amend Chapter 2.14 (Anaheim Tourism Improvement District Formation Code) of the Anaheim Municipal Code, the ATID 2010 Management Plan and the ATID Resolution of Formation
November 18, 2025
The proposed modifications to Chapter 2.14 of the Municipal Code and 2010 Management Plan will serve to further promote local tourism and convention-related programs and activities for hotels located in the ATID area. Among other modifications, the proposed assignment of dedicated ATID revenues to support housing programs will assist in addressing the significant need for workforce housing for workers at ATID assessed businesses. Furthermore, based on research conducted by Keyser Marston Associates, the provision of affordable housing programs to workers within the ATID would provide direct benefits to the hotel owners that are subject to the ATID assessment. These benefits include greater worker stability, which would help both attract and retain workers, and would result in a decrease in the employer costs related to worker turnover.
Hearing Procedure and Calculation of Protests
State law and the Anaheim Municipal Code establishes a procedure under which Assessed Facilities may protest modifications to the ATID. As part of the procedure, on September 30, 2025, the City mailed to all Assessed Facilities subject to the ATID, the complete Resolution of Intent with all Exhibits which specifically showed the proposed modifications to Chapter 2.14 and the 2010 Management Plan, the date and time of the public meeting and hearing, a cover letter explaining the process for adoption and protest procedure, and a protest form. The City also published Notice on the Adoption of the Resolution of Intent, the date and time of the public meeting and hearing, and a description of the protest procedure in the local newspaper on October 2, 9, and 16, 2025.
As this meeting, the City Council will hear and consider all oral and written protests regarding the proposed amendments to Chapter 2.14, the 2010 Management Plan, and the Resolution of Formation for the ATID. A majority protest is defined as oral or written protests submitted by Assessed Facilities within the current and proposed ATID boundaries that together represent fifty percent (50%) or more of the total ATID Assessments levied. Whether a majority protest is received will by calculated by the City Clerk after the close of the public hearing and this determination will be presented to the City Council and public as part of the meeting. If a majority protest is not received, the City Council may proceed to consider an action to (1) waive the full reading and introduce an Ordinance Amending Chapter 2.14 of the Municipal Code and (2) approve the Resolution Adopting Modifications Relating To The Anaheim Tourism Improvement District of 2010 Management Plan and Related Modification To The Resolution of Formation. As of the date of this staff report, the City has received three written protest votes, representing approximately 1.86% of the total assessment which is below the 50% required to constitute a majority protest.
IMPACT ON BUDGET:
The proposed amendment to AMC Chapter 2.14 and the Amended and Restated Management Plan includes a provision that provides for the City’s costs relating to the proposed ATID Modifications to be reimbursed from the proceeds of FY 26-27 assessments generated by the ATID above and beyond, and in addition to, the one percent (1%) annual City administrative costs amount.
Public Hearing to Amend Chapter 2.14 (Anaheim Tourism Improvement District Formation Code) of the Anaheim Municipal Code, the ATID 2010 Management Plan and the ATID Resolution of Formation
November 18, 2025
Respectfully submitted,
Greg Garcia
Assistant City Manager
Attachments:
1. An Ordinance of The City Council of The City of Anaheim Amending Specified Sections of Chapter 2.14 of The Anaheim Municipal Code Relating To The Anaheim Tourism Improvement District
2. Redline showing changes to existing Chapter 2.14 under Ordinance
3. Resolution Amending The Anaheim Tourism Improvement District Of 2010 Management Plan And The Resolution Of Formation For The Anaheim Tourism Improvement District
4. Redline showing changes to 2010 Management Plan under Resolution