CA Review AZ
Meeting Date: July 23, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Matt Sanford, Economic Development Manager [email protected], 442-339-5987
Subject: Disestablishing the Carlsbad Golf Lodging Business Improvement District Under the Parking and Business Improvement Area Law of 1989 Districts: All
Recommended Action
1. Hold a public hearing; and
2. Introduce an ordinance repealing Chapter 3.38 of the Carlsbad Municipal Code and disestablishing the Carlsbad Golf Lodging Business Improvement District.
Executive Summary
On April 18, 2023, the City Council formed a new Carlsbad Tourism Business Improvement District under the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et seq
1).
The new district established a benefit zone focused on golf-related programs that was intended to replace the Carlsbad Golf Lodging Business Improvement District, which was established under an older state law that imposed limitations on the district. The new district creates greater efficiencies in how Carlsbad is marketed for tourism. With a replacement program in place, the Carlsbad Golf Lodging Business Improvement District assessment was discontinued on June 30, 2023. However, before disestablishing the district, all remaining funds in the Carlsbad Golf Lodging Business Improvement District account had to be exhausted. All remaining funds have now been exhausted and the Carlsbad Golf Lodging Business Improvement District’s Advisory Board approved a recommendation to the City Council to disestablish the district.
On June 25, 2024, the City Council adopted Resolution No. 2024-157 (Exhibit 1) declaring its intention to repeal Carlsbad Municipal Code Chapter 3.38, disestablishing the Carlsbad Golf Lodging Business Improvement District and setting a public hearing on July 23, 2024. 1 Et seq, or et sequentes, means all of the codes in the section, not just the single one cited.
July 23, 2024
Item #10 Page 1 of 8
Staff are now recommending the City Council hold a public hearing and then adopt an ordinance repealing Carlsbad Municipal Code Chapter 3.38 contemporaneously with disestablishing the Carlsbad Golf Lodging Business Improvement District, in keeping with California Streets and Highways Code Section 36550 (Exhibit 2).
Explanation & Analysis
The City Council approved Ordinance No. CS-194 in 2012 enacting Chapter 3.38 of the Carlsbad Municipal Code establishing the Carlsbad Golf Lodging Business Improvement District under the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code Section 36500 et seq.).
The district provided a benefit to participating lodging businesses by collecting an assessment of 1% of daily room night costs from visitors to be used to market Carlsbad as a golf destination as well as the participating lodging businesses. Over time, the district grew to have eight participating lodging businesses.
The newly established Carlsbad Tourism Business Improvement District and its corresponding assessment began operating on July 1, 2023, as was approved in what is called the district’s management district plan. The 1994 law allows for the creation of one or more benefit zones within the district to raise funds within a specific geographic area for different categories of businesses. The new district created such a benefit zone to focus on golf lodging, which includes an optional additional assessment for properties that opt into the golf benefit zone.
Under the new district, lodging businesses may voluntarily elect to pay an additional 1% assessment in addition to the base assessment, which is consistent with the previous Carlsbad Golf Lodging Business Improvement District assessment. The funds raised through the additional assessment are used to promote golf-related programs and activities to increase room sales for those lodging businesses that opt-in to paying the additional assessment. The proceeds of the additional assessment pay for golf-related programs and services specifically tailored only to those paying the additional assessment.
This zone effectively replaced the Carlsbad Golf Lodging Business Improvement District, creating greater efficiencies in operations and destination marketing in Carlsbad.
Funds that were collected by the Carlsbad Golf Lodging Business Improvement District needed to be fully expended before golf-related promotion services could be shifted to the new district.
On May 6, 2024, the Carlsbad Golf Lodging Business Improvement District’s Advisory Board approved the final reimbursements to properties for golf-related expenses, exhausting the old district’s funds. With those funds exhausted, the Advisory Board approved a recommendation to the City Council to disestablish the district.
Fiscal An
alysis
Since the Carlsbad Golf Lodging Business Improvement District operations were replaced by a similar program under the new Carlsbad Tourism Business Improvement District, there is no immediate fiscal impact on the city from approving the disestablishment of the no-longer needed district.
July 23, 2024
Item #10 Page 2 of 8
Next Steps
With the City Council’s approval, staff will return to the City Council at its next regular meeting for the second reading of the ordinance repealing Carlsbad Municipal Code Chapter 3.38 and disestablishing the Carlsbad Golf Lodging Business Improvement District.
Environmental E valuation
This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment.
Exhibits
1. City Council Resolution No. 2024-157
2. City Council Ordinance
July 23, 2024
Item #10 Page 3 of 8
Exhibit 1
July 23, 2024
Item #10 Page 4 of 8
RESOLUTION NO. 2024-157
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, DECLARING ITS INTENTION TO REPEAL CARLSBAD MUNICIPAL CODE CHAPTER 3.38 AND DISESTABLISH THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT ESTABLISHED IN 2012 AND FIXING THE
TIME AND PLACE OF A PUBLIC HEARING
WHEREAS, on Nov. 27, 2012, the City Council of the City of Carlsbad approved Ordinance No.
CS-194 enacting Chapter 3.38 of the Carlsbad Municipal Code establishing the Carlsbad Golf Lodging Business Improvement District (CGLBID) under the Parking and Busine·ss Improvement Area Law of 1989 (California Streets and Highways Code Section 36500 et seq.); and WHEREAS, the City Council formed a new Carlsbad Tourism Business Improvement District on April 18, 2023 (New CTBID) under the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et seq.) as effectuated in City Council Resolution No. 2023-118; and
WHEREAS, the New CTBID will continue providing golf -related programs and activities with Visit Carlsbad as the contracted Owners' Association as defined under the 94 Law; and WHEREAS, as a result of the New CTBID's establishment, the Carlsbad Golf Lodging Business Improvement District has wound down operations and exhausted its remaining funds as of May 6, 2024;and
WHEREAS, as a result of disestablishing the Carlsbad Golf Lodging Business Improvement District, Chapter 3.38 of the Carlsbad Municipal Code will become obsolete; and WHEREAS, the City Council has the authority to disestablish the Carlsbad Golf Lodging Business Improvement District under California Streets and Highways Code Section 36550.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City Council declares its intention to repeal Carlsbad Municipal Code Chapter
3.38 contemporaneously with the disestablishment of the Carlsbad Golf Lodging Business Improvement District.
July 23, 2024
Item #10 Page 5 of 8
3. That there are no remaining assets to dispose of acquired with the revenues of the assessments levied and collected for the Carlsbad Golf Lodging Business Improvement District' s projects, programs , activities, and administration.
4. That the time and place for the public hearing to hear testimony on disestablishing the Carlsbad Golf Lodging Business Improvement District is set for July 23, 2024 at 5 p.m. at Carlsbad City Hall, 1200 Carlsbad Village Drive, Carlsbad, CA 92008.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 25th day of June, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, Mayor
krJ'-SHERRY FREISINGER, City Clerk
U- (SEAL)
ORDINANCE NO. CS-472
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REPEALING CHAPTER 3.38 OF THE CARLSBAD MUNICIPAL
CODE AND DISESTABLISHING THE CARLSBAD GOLF LODGING BUSINESS
IMPROVEMENT DISTRICT
WHEREAS, on Nov. 27, 2012, the City Council of the City of Carlsbad approved Ordinance No.
CS-194 enacting Chapter 3.38 of the Carlsbad Municipal Code establishing the Carlsbad Golf Lodging Business Improvement District (CGLBID) under the Parking and Business Improvement Area Law of 1989 (89 Law) (California Streets and Highways Code Section 36500 et seq.); and WHEREAS, the City Council formed a new Carlsbad Tourism Business Improvement District on April 18, 2023 (New CTBID) under the Property and Business Improvement District Law of 1994 (94 Law) (California Streets and Highways Code Section 36600 et seq.) as effectuated in City Council Resolution No. 2023-118; and
WHEREAS, the New CTBID will continue providing golf-related programs and activities with Visit Carlsbad as the contracted Owners' Association as defined under the 94 Law; and WHEREAS, as a result of the New CTBID's establishment, the Carlsbad Golf Lodging Business Improvement District wound down operations and exhausted its remaining funds as of May 6, 2024; and
WHEREAS, as a result of disestablishing the Carlsbad Golf Lodging Business Improvement District, Chapter 3.38 of the Carlsbad Municipal Code will become obsolete; and WHEREAS, the City Council has the authority to disestablish the Carlsbad Golf Lodging Business Improvement District under California Streets and Highways Code Section 36550; and WHEREAS, on June 25, 2024, the City Council adopted Resolution No. 2024-157 (Resolution of Intention) declaring its intention to disestablish the Carlsbad Golf Lodging Business Improvement District, repeal Chapter 3.38 of the Carlsbad Municipal Code, and set a public hearing for July 23, 2024 at 5 p.m. at Carlsbad City Hall, 1200 Carlsbad Village Drive, Carlsbad, California, 92008; and WHEREAS, in accordance with California Streets and Highways Code Section 36523, city staff caused a complete copy of the Resolution of Intention to be published in a newspaper of general circulation in the city, and within seven (7) days following the adoption of the Resolution of Intention furnished a complete copy via first-class mail to each business owner assessed within the Carlsbad Golf Lodging Business Improvement District; and
Exhibit 2
July 23,
2024 Item #10 Page 6 of 8
WHEREAS, on July 23, 2024, a public hearing was held at Carlsbad City H all, 1200 Carlsbad Village Drive, Carlsbad, C alifornia, 92008, where evidence, both written and oral, was presented to, and considered by, the City Council during the public hearing; and WHEREAS, the City Planner has determined disestablishment of the Carlsbad Lodging Business Improvement District is exempt from the California Environmental Quality Act because this action does not constitute a project under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment.
NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains as follows that:
1. The above recitations are true and correct.
2. Carlsbad Municipal C ode Chapter 3.38, Carlsbad Golf Lodging Business Improvement District, is repealed in its entirety.
3. Pursuant to California Streets and Highways Code Section 36550 , the City Council disestablishes the Carlsbad Golf Lodging Business Improvement District.
EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption.
July 23, 2024
Item #10 Page 7 of 8
INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the ______ day of __________, 2024, and thereafter
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the __ day of ________, 2024, by the following vote, to wit:
AYES:
N AYS:
ABSTAIN:
ABSENT:
APPROVED AS TO FORM AND LEGALITY:
_________________________________
CINDIE K. McMAHON, City Attorney
_______________________________________
KEITH BLACKBURN, Mayor
_______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
July 23, 2024
Item #10 Page 8 of 8
Matt Sanford, Economic Development Manager
Disestablishing the Carlsbad Golf Lodging
Business Improvement District Under the
Parking and Business Improvement Area Law
of 1989
July 23, 2024
1 {city of
Carlsbad
PROPOSED ACTION
Hold a public hearing and adopt an ordinance
repealing Chapter 3.38 of the Carlsbad
Municipal Code and disestablishing the
Carlsbad Golf Lodging Business Improvement
District.
ITEM 10: CGLBID DISESTABLISHMENT
2 {city of
Carlsbad
CGLBID BACKGROUND
• The CGLBID was established in 2012 to market
C
arlsbad and individual lodging properties as
a golf destination
• Eight lodging properties participated in the CGLBID
• Participating properties assessed visitors an additional 1 % of the nightly room cost
• Funds were used by participating properties for golf
m
arketing and to bolster the golf experience for
visitors
ITEM 10: CGLBID DISESTABLISHMENT
3 {city of
Carlsbad
NEW CTBID FORMATION
• On April 18, 2023, the City Council formed a new
C
arlsbad Tourism Business Improvement District
under an updated law, which allowed for greater
efficiency in operations
• The new CTBID included a special golf-l
odging
benefit zone for properties that choose opt-in
• The new zone replaces the CGLBID
ITEM 10: CGLBID DISESTABLISHMENT
4 {city of
Carlsbad
CGLBID DISESTABLISHMENT
• On May 6, 2024, the CGLBID Advisory Board
a
pproved final expenditures, exhausting the
CGLBID funds
• The Advisory Board also adopted a resolution
r
ecommending the City Council disestablish the
district
• On June 25, the City Council adopted resolution
2 024-157, declaring its intent to disestablish the
district and setting a public hearing for July 23
ITEM 10: CGLBID DISESTABLISHMENT
5 {city of
Carlsbad
PROPOSED ACTION
Hold a public hearing and adopt an ordinance
repealing Chapter 3.38 of the Carlsbad
Municipal Code and disestablishing the
Carlsbad Golf Lodging Business Improvement
District.
ITEM 10: CGLBID DISESTABLISHMENT
6 {city of
Carlsbad
Questions
Thank you!
7 {city of
Carlsbad