RESOLUTION NO. 2023-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, CONFIRMING THE ANNUAL REPORT FILED BY TRAVEL COSTA MESA AND LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2023-2024 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS:
WHEREAS, in adopting the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code sections 36500, et seq.), the California Legislature authorized cities to levy assessments on businesses in order to promote economic revitalization and tourism, to create jobs, attract new businesses, and prevent erosion of business districts; and WHEREAS, on July 5, 1995, by Ordinance No. 95-9, the City Council adopted a business improvement area, commonly known as the Costa Mesa Tourism & Promotion Business Improvement Area (“BIA”), the purpose of which is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel businesses within the City of Costa Mesa; and WHEREAS, the eleven (11) hotels and motels listed in Exhibit A, attached hereto and incorporated herein by this reference, are currently subject to the assessment; and WHEREAS, the City Council appointed the general managers of the 11 hotels and motels subject to the assessment to serve as the advisory board as required by California Streets and Highways Code section 36530; and WHEREAS, said advisory board is known as Travel Costa Mesa (“TCM”); and WHEREAS, the City Council has voted to continue the special assessment for the BIA each year since its inception, and it has been levied upon the 11 hotel and motel businesses listed in Exhibit A; and WHEREAS, in January 2000, the City Council approved an increase in the assessment, raising the assessment from one percent (1%) to two percent (2%) based on the sale of overnight room stays; and WHEREAS, in November 2010, the City Council approved an increase in the assessment, raising the assessment from two percent (2%) to three percent (3%) based on the sale of overnight room stays; and WHEREAS, the City desires to levy and collect a three percent (3%) assessment within the BIA for Fiscal Year 2023-2024; and WHEREAS, on May 2, 2023, the City Council adopted Resolution No. 2023-19, a resolution of intention to levy an assessment for Fiscal Year 2023-2024, pursuant to California Streets and Highways Code section 36534; and WHEREAS, the City Council has conducted a public hearing pursuant to California Streets and Highways Code section 36535; and WHEREAS, the City Council now desires to confirm the annual report as filed by TCM and adopt this Resolution to levy the assessment for the 2023-2024 Fiscal Year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows:
Section 1. Annual Report. The City Council hereby confirms the annual report on the Business Improvement Area as originally filed by Travel Costa Mesa in accordance with California Streets and Highways Code section 36535. The report shall be kept on file in the City Clerk’s Office.
Section 2. Assessment. An annual assessment for the BIA shall be levied pursuant to California Streets and Highways Code sections 36500, et seq. The boundaries of the territory are the 11 motels and hotels listed in Exhibit A. The amount of the annual assessment is three percent (3%) based on the sale of overnight room stays. New hotel and motel businesses commenced after the effective date of the resolution levying the assessment will be exempt from the levy of assessment pursuant to California Streets and Highways Code section 36531.
Section 3. Types of Activities to Be Funded. The type or types of activities to be funded by and through the annual levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council Business Improvement Area are specified in the referenced annual report and Exhibit B, attached hereto and incorporated herein.
Section 4. Reporting and Remitting to the City of Costa Mesa Finance Department. Each hotel/motel owner shall separate the Business Improvement Assessment from the Transient Occupancy Tax on guest billing statements. The specific term “Business Improvement Assessment” shall be included on the billing to identify the assessment amount. The hotel/motel owner shall collect and subsequently remit the assessment to the Costa Mesa Finance Department at the same time and manner as the Transient Occupancy Tax. A ten percent (10%) penalty and half percent (0.5%) interest will be assessed on late remittances.
Section 5. Method and Basis of Levy. To allow each business owner to estimate the amount of the assessment to be levied against his or her business, the method and basis of levying the assessment are set forth in the annual report relative to the Business Improvement Area, Ordinance No. 95-9, and Exhibit B.
PASSED AND ADOPTED this 6th day of June, 2023.
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2023-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 6th day of June, 2023, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 7th day of June, 2023.
Brenda Green, City Clerk
EXHIBIT A
The Business Improvement Area (“BIA”) benefit zone encompasses the entire City of Costa Mesa boundaries. It is anticipated that the entire City, including businesses and residents, will benefit from increased revenues generated by the activities financed by the BIA assessment.
The following businesses will be included in the BIA that is established pursuant to California Streets and Highways Code sections 36500, et seq., the businesses commonly known as:
Avenue of the Arts, A Tribute Portfolio Hotel
Property Address: 3350 Avenue of the Arts, Costa Mesa
Business Owner: Rosanna Inc.
3350 Avenue of the Arts Costa Mesa, CA 92627
Property Owner: Rosanna Inc.
3350 Avenue of the Arts Costa Mesa, CA 92627
Ayres Country Inn & Suites
Property Address: 325 Bristol Street, Costa Mesa
Business Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A Costa Mesa, CA 92626
Property Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A Costa Mesa, CA 92626
Best Western Plus Newport Mesa Inn
Property Address: 2642 Newport Boulevard, Costa Mesa
Business Owner: James Hsuen
Shang-Pu Lee
2642 Newport Boulevard, Costa Mesa, CA 92627
Property Owner: James Hsuen
Shang-Pu Lee
2642 Newport Boulevard, Costa Mesa, CA 92627
Crowne Plaza
Property Address: 3131 Bristol Street, Costa Mesa
Business Owner: Brighton Management
20342 SW Acacia St. Newport Beach, CA 92660
Property Owner: Bright Bristol Street LLC
3131 Bristol Street Costa Mesa, CA 92626
Hilton
Property Address: 3050 Bristol Street, Costa Mesa
Business Owner: Ashford TRS CM LLC
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254
Property Owner: Remington Lodging & Hospitality LP
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254
Holiday Inn Express Hotel & Suites
Property Address: 2070 Newport Boulevard, Costa Mesa
Business Owner: Narendra B. Patel
2070 Newport Blvd. Costa Mesa, CA 92667
Property Owner: Narendra B. Patel
2070 Newport Blvd. Costa Mesa, CA 92667
Costa Mesa Marriott
Property Address: 500 Anton Boulevard, Costa Mesa
Business Owner: Starwood Capital Group
591 West Putnam Avenue Greenwich, CT 06830
Property Owner: HEI Hotels & Resorts
101 Merritt 7 Corporate Park, 1st Floor Norwalk, CT 06851 OC Hotel Costa Mesa (Formerly BLVD Hotel)
Property Address: 2430 Newport Boulevard, Costa Mesa
Business Owner: Sai Hospitality Services, LLC
11556 Manchester Way Porter Ranch, CA 91326
Property Owner: Sanjay Panchal
11556 Manchester Way Porter Ranch, CA 91326
Ramada Inn & Suites Costa Mesa
Property Address: 1680 Superior Avenue, Costa Mesa
Business Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave. Costa Mesa, CA 92627
Property Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave. Costa Mesa, CA 92627
Residence Inn by Marriott
Property Address: 881 Baker Street, Costa Mesa
Business Owner: Marriott International
10400 Fernwood Rd.
Bethesda, MD 20817
Property Owner: BRE Select Hotels and Resorts
6201 15th Avenue
Brooklyn, NY 11219
The Westin South Coast Plaza Hotel
Property Address: 686 Anton Boulevard, Costa Mesa
Business Owner: Host Hotels & Resorts
6903 Rockledge Dr., Suite 1500
Bethesda, MD 20817
Property Owner: CJ Segerstrom & Sons
c/o South Coast Plaza 686 Anton Boulevard Costa Mesa, CA 92626
EXHIBIT B
The BIA assessment will be used to fund Travel Costa Mesa (“TCM”). TCM will fund activities to promote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City.
Revenue
A three percent (3%) levy will be assessed against each of the 11 hotels listed in Exhibit A, based on the net revenue from the sale of overnight room stays.
Business owners shall pay the assessment to the Costa Mesa City Finance Department on a monthly basis. A penalty and interest shall be assessed on late payments.
Note: New hotel and motel businesses commenced after the effective date of this resolution will be exempt from the levy of assessment.
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