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item 9 Approval of the Garden Grove Tourism Improvement District Advisory Board's 2025-26 Annual Report and adoption of a Resolution declaring the City’s intention to levy assessments for Fiscal Year 2025-26

Garden Grove City Council
April 22, 2025

Document
item 9 Approval of the Garden Grove Tourism Improvement District Advisory Board's 2025-26 Annual Report and adoption of a Resolution declaring the City’s intention to levy assessments for Fiscal Year 2025-26
Meeting
April 22, 2025
Body
Garden Grove City Council
Original file
118 KB
Text extracted from the city's file for reading and search. Open the original on agendasuite.org. That file is the official record.

GARDEN GROVE TOURISM IMPROVEMENT DISTRICT

ADVISORY BOARD REPORT
Fiscal Year 2025–2026
Prepared in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code § 36500 et seq.)

The Garden Grove Tourism Improvement District (GGTID) was established by the Garden Grove City Council in accordance with the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code section 36500 et seq. (referred to as the “Law”), through the adoption of Resolution No. 9009-10 on August 24, 2010, and Ordinance No. 2782 on October 26, 2010.

The purpose of the GGTID is to provide revenue to defray the costs of advertising and marketing efforts designed to increase overnight stays in the GGTID, for construction and for maintenance of improvements in the GGTID. It will also provide other services, activities, and programs that promote and encourage tourism within the GGTID, which will benefit the Operators of Visitor Accommodation Facilities paying assessments through the promotion of scenic, recreational, cultural, and other attractions.

Pursuant to Ordinance No. 2782, the Board of Directors of the Garden Grove Tourism Promotion Corporation, a California non-profit mutual benefit corporation, serves as the GGTID Advisory Board. In accordance with Ordinance No. 2782 and California Streets and Highways Code Section 36533, the Advisory Board is required to annually prepare and submit to the City, a report for the upcoming fiscal year, which is required to contain the following:

1. Any proposed changes in the boundaries of the GGTID or the benefit zones within the GGTID.

2. The GGTID improvements and activities to be provided in the upcoming fiscal year from GGTID assessment revenues and/or any other contributions from sources other than GGTID assessment revenues.

3. An estimate of the cost of providing the GGTID improvements and the activities for the upcoming fiscal year.

4. The method and basis of levying the assessment in sufficient detail to allow each Visitor Accommodation Facility to estimate the amount of the assessment to be levied against the Visitor Accommodation Facility for the fiscal year, and any proposed changes to the method and basis of levying the assessment.

5. The amount of any surplus or deficit revenues to be carried over from the previous fiscal year.

6. The amount of any contributions to the GGTID to be made from sources other than assessments levied against the Visitor Accommodation Facilities.

1. CHANGES TO BOUNDARIES AND BENEFIT ZONES
No Changes to Boundaries Proposed
The GGTID boundaries encompass certain real property in Garden Grove generally fronting or near Harbor Boulevard, from the northern boundary of the City to Garden Grove Boulevard. The GGTID includes two (2) benefit zones:
• Tier I: All real property within the GGTID north of Lampson Avenue. • Tier II: All real property within the GGTID south of Lampson Avenue.

A map of the GGTID and its two benefit zones is on file with the Garden Grove City Clerk.

No changes to these boundaries or benefit zones are proposed for Fiscal Year 2025–2026.

2. PROPOSED ACTIVITIES FOR FISCAL YEAR 2025–2026
The GGTID improvements and activities to be provided (funded by GGTID assessment revenues and other possible contributions) include:

1. Development of a New Destination Website
o Creation of a dynamic online platform showcasing Grove District hotel offerings, renovations, dining, entertainment, and transportation. o Designed to convert digital interest into overnight bookings, increase occupancy rates, and drive visitor spending.
o Serves as a centralized hub for marketing campaigns, partnerships, and strategic branding efforts.

2. Foods of Garden Grove LIVE 2025
o Building on the success of the 2024 event, this culinary festival will feature local restaurants, diverse cultural showcases, chef demonstrations, influencer meetups, and interactive tastings.
o Enhanced digital integration with AI-powered promotions and real-time audience engagement.
o Aims to raise regional awareness, support local businesses, and highlight Garden Grove’s vibrant food scene.

3. Maintenance Activities
o Ongoing maintenance of sidewalks, landscaping, bus shelters, and palm tree lighting--particularly along Harbor Boulevard between Chapman Avenue and Garden Grove Boulevard.
o Enhancements intended to maintain a clean, attractive environment that encourages visitor engagement.

4. Private Security
o Implementation of private security measures to bolster safety throughout the Grove District.
o Emphasizes improved public perception, visitor confidence, and overall district security.

5. Trade Mission
o Promotion of Garden Grove in emerging domestic and international markets to elevate the City’s profile as a premier tourist destination. o Focuses on increasing visitor arrivals, boosting hotel occupancy, and driving regional economic growth.

6. Garden Grove Chamber of Commerce Tourism Initiatives o Continued strategic partnership with the Garden Grove Chamber of Commerce to bolster marketing and promotional efforts.
o Utilizes Chamber-hosted events, business development programs, and advocacy efforts to expand the GGTID’s visibility.

3. ESTIMATED COSTS OF IMPROVEMENTS AND ACTIVITIES
In accordance with a 2011 agreement between the City of Garden Grove and the Visitors Convention Bureau (VCB), approximately 80% of the net GGTID assessment revenues (2.0% of the total 2.5% assessment in Tier I, and 0.4% of the total 0.5% assessment in Tier II) is allocated to Visit Anaheim for marketing and promotion benefitting Visitor Accommodation Facilities in the “Anaheim Resort District.” For Fiscal Year 2025–2026, the City retains 0.5% of gross room rent charged per occupied room night for transit or transportation systems that benefit the GGTID.

GGTID Budget for FY 2025–2026
The GGTID Budget FY 2025–2026 identifies the following estimated revenues and expenses:

Revenues
• FY 2025–2026 Estimated Revenue: $733,000
• FY 2024–2025 Carry Over: $115,000
• Total FY 2025–2026 Revenue: $848,000

GGTID FY 2025–2026 Expenses
Category % of Total Budget (USD)

1. Marketing
A. Website 9.6% $81,408
B. Foods of Garden Grove 3.3% $27,984

2. Tourism Missions 4.0% $33,920

3. Chamber and Sponsorships 6.0% $50,880

4. Private Security 30.0% $254,400

5. Harbor Blvd. Maintenance / Utilities / Repairs 33.0% $279,840

6. Condominium Management Contract 2.1% $17,808

7. City Administrative Fees (Per Agreement) 3.0% $25,440

8. Administrative/Accounting/Auditing (Per Agreement) 4.0% $33,920

9. GGTID Reserve 5.0% $42,400
100% $848,000

4. METHOD AND BASIS FOR LEVYING THE ASSESSMENT
No Changes to Assessment Rate or Method
The annual assessments will remain at:
• Tier I: Two and one-half percent (2.5%) of the gross rent charged by the Operator per room per night.
• Tier II: One-half percent (0.5%) of the gross rent charged by the Operator per room per night.

Assessments continue to be collected monthly, at the same time and in the same manner as the City’s Hotel Visitors Tax, pursuant to Chapter 12 of Title 3 of the Garden Grove Municipal Code.

5. PRIOR YEAR SURPLUS OR DEFICIT
It is estimated that $115,000 in surplus assessment revenues will be carried over from Fiscal Year 2024–2025. These funds will be used to finance GGTID improvements and activities in Fiscal Year 2025–2026 as outlined in the budget above.

6. OTHER CONTRIBUTIONS
No additional contributions to the GGTID from outside sources are anticipated for Fiscal Year 2025–2026.
2024–2025 Garden Grove Tourism Improvement District Accomplishments For Fiscal Year 2024–2025, the Garden Grove Tourism Improvement District (GGTID) strategically allocated marketing funds to enhance the Grove District with a focus on promoting tourism, supporting local businesses, and improving community infrastructure.

Below is a breakdown of key initiatives and allocations:

1. Marketing
o $28,413 was allocated for general marketing efforts, including promotional materials, targeted advertising campaigns, and related outreach designed to attract visitors and boost overnight stays.

2. Website
o $28,413 was specifically invested in developing a dedicated Website to showcase the Grove District’s attractions, accommodations, and dining. o In March 2025, the Garden Grove Tourist Promotion Corporation (GGTPC) selected Unbiazed to design and develop this modern, fully responsive Website that follows best practices in tourism marketing and user experience.

3. Foods of Garden Grove LIVE 2024
o $27,984 supported the City’s signature culinary event celebrating local restaurants and diverse cultural experiences.
o Leveraging AI-generated captions and geo-targeted campaigns, the event saw a 250% increase in social media engagement and over 50,000 digital impressions, with 4,000+ attendees.

4. Tourism Missions
o $33,900 was allocated to promote Garden Grove in targeted domestic and international markets. Unused funds from FY 2024–2025 (due to a canceled trade mission) were reallocated to landscaping and security.

5. Chamber and Sponsorships
o $50,088 was dedicated to partnerships with the Garden Grove Chamber of Commerce and other sponsorship initiatives, fostering broader business relationships and regional marketing opportunities.

6. Private Security Enhancement
o $254,400 was funded to enhanced private security within the Grove District, strengthening safety, visitor confidence, and overall commercial vitality.

7. Utilities, Repairs, and Landscaping
o $279,840 was used for infrastructure maintenance, including tree trimming, irrigation upgrades, and streetscape improvements along Harbor Boulevard and Chapman Avenue.

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